Rig operators are doing better than ever, said Houston-based Global Marine Inc. executives last week. Global Marine said dayrates for offshore oil and gas drilling rigs will shoot past the 1997-98 levels, based partly on energy proposals from the Bush Administration and because of increased drilling in international markets. Other operators also are benefiting: Tulsa-based Unit Corp. said its drilling demand in the Gulf Coast region has jumped 26% in just six months.

Global Marine CEO Bob Rose said that the dayrates, which hit all-time highs three years ago, will be trumped by more drilling offshore this year. At the current time, dayrates are about 74% of the highs reached three years ago, Rose said. With the continued natural gas drilling expanding in the U.S. Gulf of Mexico, Rose said that the North Sea and West African markets now are also recovering.

Because the company expects to see an increase in the dayrates, it has begun to limit the length of new contracts signed for its rigs, Rose said. The average dayrate for Global Marine rigs was $71,100 in the first quarter, compared with $52,000 in the first quarter of 2000. In April, the company’s fleet utilization rate reached 100% for the first time since mid-1988, he said.

Michael Dawson, vice president of investor relations for the company, said that the Bush Administration’s energy plan also was a welcome sign, with the proposed incentives for exploration offshore important. However, he said that Global Marine is already benefiting from the upswing in the Gulf of Mexico.

Unit Corp. said last week it had up its rig fleet to 55 after purchasing three more for $7.9 million. CEO John Nikkel said that drilling rig demand was strong, with rig rates in the Gulf Coast region climbing every month.

Nikkel said that Unit had seen “virtually full rig utilization for the past eight months,” and said “demand continues to grow in each of our core operating areas.” The company will add “at least two of these rigs to our Gulf Coast fleet and are currently negotiating with several operators.” Unit’s newest drilling rigs can drill to depths ranging from 16,000 to 20,000 feet, said the company. Since late last year, Unit has upped its rig fleet 17%, adding eight rigs since the fourth quarter.

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