O & G Rigs Take Record Hit From Hurr Rita

[GOPAgainstGW]

O & G Rigs Take Record Hit From Hurr Rita
Damaged, lost rigs used for exploration may delay discovery of new global oil supplies, paper says.
September 28, 2005: 8:08 AM EDT

NEW YORK (CNN/Money) - Hurricane Rita caused record damage to offshore oil and natural gas rigs, according to a published report, and that could delay exploratory drilling planned to meet the world's growing appetite for oil.

The Financial Times cited market intelligence firm ODS-Petrodata as saying the storm that hit near the Texas-Louisiana border early Saturday will cause a shortage of rigs off the Gulf Coast this year. Rigs are movable and used for exploration and development, as opposed to platforms, which are fixed and used to extract oil from established offshore reserves.

The newspaper reports that the hit taken by rigs could delay exploration drilling as far away as the Middle East.

<snip>

While Hurricane Katrina hit an area where there were mostly mature oil and gas platforms, "Rita came to the west where there is a lot of (exploratory) rig activity." The newspaper reports that according to the Coast Guard, nine semi-submersible rigs have broken free from their moorings and were adrift.

<snip>

Rigs were in short supply even before the hurricanes, the newspaper reports. They cost $90 million to $550 million, and a rig ordered today to replace a damaged or destroyed rig won't be available before 2008, according to the report.

http://money.cnn.com/2005/09/28/news/economy/rita_rigs/

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[GOPAgainstGW]

1. Oil Futures Head Higher

Rig shortage seen in U.S. Gulf this year: Financial Times

NEW YORK (MarketWatch) -- Crude-oil futures edged back above $65 a barrel Wednesday as traders reviewed the latest damage reports on energy facilities in the Gulf of Mexico and awaited weekly supply data.

Fully 100%, or more than 1.5 million barrels, of daily oil output in the Gulf was offline as of Tuesday as a result of hurricanes Katrina and Rita, according to the U.S. Minerals Management Service. And more than 78% of daily natural-gas production remained offline, the MMS said. The output figures were virtually unchanged from Monday.

An article in the Financial Times Wednesday said that Rita had caused more damage to oil rigs in the Gulf than any other storm in history. Observers cited in the story were expecting a shortage of rigs in the U.S. Gulf this year.

http://www.marketwatch.com/news/story.asp?guid=%7B93D34362-4AF0-49CD-BD4E-8A6424290FE3%7D&siteid=google&dist=

[al bupp]

2. Very interesting, thank you /eom

[bemildred]

3. GlobalSantaFe Finds Missing Jackup Rigs Off Louisiana Coast

GlobalSantaFe has located its two missing jackup rigs in shallow waters off the Louisiana coast, approximately 80 miles from their drilling sites. The GSF Adriatic VII and GSF High Island III appeared to have sustained severe damage during Hurricane Rita, but a thorough assessment is required before the company can determine the extent of damage and economic feasibility of repairs. Assessment teams have boarded and begun inspecting the rigs.

http://www.rigzone.com/news/article.asp?a_id=25600

[bemildred]

4. Storm's (Rita) Punch Has Aggravated Energy Crunch

Hurricane Rita did not prove to be the apocalyptic event so many in the energy sector had feared. One analyst said the storm's impact on the nation's fuel supplies may prove to be only about half that of Katrina.

But Rita has made an already serious energy crunch that much worse.

While assessments from Gulf Coast refineries, offshore production
platforms and undersea pipelines are still coming in, this much seems clear:

The nation's gasoline market will remain tight for weeks, while growing interruptions of natural gas supplies raise questions about supplies this winter for heating.

http://www.rigzone.com/news/article.asp?a_id=25593