<DrumBeat: December 1, 2006The Oil DrumDrumBeat: December 2, 2006>

274 comments on A Credible Threat?

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Euan Mearns on December 1, 2006 - 5:38am Permalink | Subthread | Parent | Comments top
As you know, the best charts have got lots and lots of lines on em.  Khebab has learned this and now leads the way.

Just happened to be looking at North Sea rig count yesterday - was more than surprised at what this showed:


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Oil CEO on December 1, 2006 - 5:41am Permalink | Subthread | Parent | Comments top
You know me, Cry Wolf, I love lines.
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Euan Mearns on December 1, 2006 - 6:02am Permalink | Subthread | Parent | Comments top
So what about Microhydro's lines? aaaaaaghhh!
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totoneila on December 1, 2006 - 6:21am Permalink | Subthread | Parent | Comments top
Hello Euan,

Good question.

  1. Are they being retired for age, rust, safety reasons, and unsuitability for ultra-deep exploration?

  2. Or are they being moved to the Mideast to help ramp up E&P there?

  3. Or are they just being mothballed for lack of any decent drilling propects at $60-75/barrel--Yikes!

Bob Shaw in Phx,Az  Are Humans Smarter than Yeast?
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Euan Mearns on December 1, 2006 - 6:40am Permalink | Subthread | Parent | Comments top
Hello Bob, I find it amazing that you guys are still up - what's the time in Phx?

All the North Sea rigs are either semi-subs or jack ups - i.e. highly mobile.  During down times, they get stacked up in an area called the Morray Firth - just north of where I stay - and go rusty.  Then during boom times they come out of retirement.  What seems to have happened during this "mega-boom" is that rigs have come out of retirement and been moved else where (I'd guess Africa).  Simple case of companies drilling where exploration and production prospects are best.

I'll be writing a bit more on this next week.

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totoneila on December 1, 2006 - 7:05am Permalink | Subthread | Parent | Comments top
Hello Euan,

Hard to sleep when the World appears to be going to Hell.  It is 4am here, but I am kinda of a night owl anyways, but heading for some shuteye shortly.  Looking forward to your future post.

Bob Shaw in Phx,Az  Are Humans Smarter than Yeast?

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elwoodelmore on December 1, 2006 - 7:38am Permalink | Subthread | Parent | Comments top
paint your wagon
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MUDLOGGER on December 1, 2006 - 9:20am Permalink | Subthread | Parent | Comments top
They were moving else where in during the bust and as the boom started elsewhere and earlier than in the North Sea (start ups here are sluggish), they stayed away.

Also: Entry level costs are higher, safety compliances, new kit, zero emissions / spillage compliance etc means that if you loose two rigs, only one may come back.

It has been the same throughout each boom - bust cycle since 1986. After each bust, fewer rigs in operation.

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GreenEconomist on December 1, 2006 - 11:54am Permalink | Subthread | Parent | Comments top
Two of the Moray Firth rigs are heading off across the Atlantic to the US.
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MUDLOGGER on December 1, 2006 - 3:12pm Permalink | Subthread | Parent | Comments top
I have heard a couple of Gorrilla Heavy duty Jack ups are coming across to the North Sea.

Swings and roundabouts

But the general trend has been down for a few years now.

But, the high rig rates may now offset the high entry costs.

Trouble is, high rates can mean fewer wells per Exploration budget.

We will see.

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Oil CEO on December 1, 2006 - 6:23am Permalink | Subthread | Parent | Comments top
I'm just saying. I kind of find it ironic. I'm the last person here who needs to ask permission for my behavior.

Stuart and I go way back. Way back before all of you.

I'll say what I want. I made my choice. 666.

MicroHydro's boring.

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