Rig utilization continued to free fall last week under the pressure of low gas and oil prices. U.S. Gulf of Mexico oil and gas rig utilization has dropped to 58.1% from 85.5% last year and nearly 90% five years ago, according to ODS-Petrodata Group’s weekly offshore rig count. There was a net two-rig decline in the number of contracted rigs last week compared to the previous week.

Of the 203 mobile offshore drilling rigs in the Gulf region, only 118 are under contract. And of the 74 platform rigs available in the Gulf, only 33 are under contract, a 45% utilization rate. In contrast, rig utilization worldwide is at 81%. European offshore rig utilization is 93.1%, according to ODS-Petrodata.

Baker Hughes reported last week that there were 741 rotary rigs drilling for natural gas in the United States, which was down 16 from the week prior and down 110 from the same week last year. The company reported 108 rotary gas and oil rigs drilling in the Gulf compared to 114 the previous week and 142 last year. There were 164 fewer oil and gas rigs drilling in Canada last week than there were at the same time last year.

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