OGJ: "US drilling fell for the fifth consecutive week, down by 26 rotary rigs to 1,764 still working, compared with a rig count of 1,809 in the same period last year, said Baker Hughes Inc."
"As usual, the biggest decline was in the biggest category, land rigs, down 28 to 1,688 still working. Inland water activity was unchanged with 9 active rigs. Offshore drilling increased by 2 rigs to 64 in the Gulf of Mexico and 67 in US offshore waters."
Shallow water dayraters in decline
"Analysts at Barclays Capital Resources, New York, said, "Day rates for jack up rigs in the Gulf of Mexico are falling quickly." They cited two recent contracts signed by Hercules Offshore Inc. for commodity rigs working with Chevron Corp. at rates 26% lower than their previous contracts. "These are the first in a series of lower day rates that will likely be revealed as the shallow water Gulf of Mexico corrects," the analysts said."
I expected that the violent decline in commodity prices would have forced at least some of the E&P companies to cut spending on drilling immidiately.
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