MarineNews Yearbook Offshore
$3 per thousand cubic feet due to mild temperatures and near record stockpiles causing the number of rigs drilling for natural gas to fall by more than half in the last year. Bennett said the current Gulf market could be compared to the downturns of the late 1980s. "It's as bad as I've seen it," he said. The oil crunch of that period saw offshore rig counts dip to a low-point of the mid-30s in 1992. In midSeptember 2009, the rig count for the Gulf stood at 27 � after an average of 53 in 2008. M.J. Cheramie, president of Galliano, La.-based L&M Botruc Rental Inc., is caught in the pinch and recently had to stack one of his 14 vessels. "The rates are terrible � down to pre-1980 numbers," he said. "It ain't easy. That's why we stacked and we may have to stack more." Day rates for OSVs under 200-feet fell to about $4,800 in June from $7,375 a year ago. OSVs 200 feet or more fell to about $12,500 from more than $19,000 a year ago. "Operators may be operating at break-even or at a loss, but they are operating," Falgout said. Gene Shiels, assistant director of investor relations for Baker Hughes, said a slow exodus of jack-up rigs from the Gulf and the move to drill and produce natural gas on land has led to the downturn in the Gulf of Mexico. "It has become clear that a lot of the natural gas activity will be centered on land, where it is less expensive to produce and there is virtually no risk at all," Shiels said. "That has put a lot
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2009
But the Gulf of Mexico does have a way of surprising people. "A lot of people have written off the Gulf several times and it's bounced
of pressure on shelf activity. I believe the deep-water market will continue to slowly strengthen, but the shelf will remain a challenging area."
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