Rockwell_subbed.qxp 31/3/09 10:05 Page 51
Asset Performance Management Systems Boost Reliability and Profitability
How Low Will Rig Count Go?
The current drop in oil rig activity is steeper than that experienced in Figure 1: International Rig Count Moves with Oil Prices
the two previous recessions, and aligns more closely with the decline
1,600 140
of the late 1980s. The 1997–1999 rig market decline, tied to the
1,400
120
Asian financial crisis, shed 544 working rigs – 53% of global starting
1,200
100
working rig fleet. It reached bottom after 84 weeks. The decline in
1,000
80
2001–2002, which followed the 11 September 2001 terrorist 800
orking rigs 60
attacks, shed 455 working rigs – 35% of global starting working rig W 600
fleet – and lasted only 38 weeks. The current decline has seen a loss
40
400
US$ per barrel
of 905 rigs, or 45% of the peak working rig fleet, which in absolute
200
20
terms and relative to duration is more severe than either of the
0 0
8
1
8
3
8
5
8
7
8
9 1 5 1 5 7
previous declines.
1975 1977 1979 19 19 19 19 19 199 1993 199 1997 1999 200 2003 200 200 2009
Rigs Oil price
The current decline may bear more similarity to the decline in the late Analysts anticipate that the current decline will see shutdown of a further
1980s (see Figure 1). That drop was partly the result of increased US 211 rigs. Added to the current 905-rig decline, the domestic rig count
drilling between 1981 and 1983, due to new legislation under would then have fallen by 1,116 rigs, or 55%, from the September peak
President Reagan, which was dramatically undercut by an oil glut, of 2,031 working rigs. The US rig count also appears more volatile than
divisions between Saudi Arabia and other Organization of Petroleum the international rig count. The US rig count fell by 788 active rigs, or
Exporting Countries (OPEC) members and the collapse in global 61%, from the peak to the end of February. In contrast, the international
crude oil prices in late 1986. The subsequent rig decline lasted for 65 rig count has only dropped by 88 rigs, or 8%, in the same period. ■
weeks from peak to trough. The complete 1980s rig cycle spanned
246 weeks from peak to trough. Sources: Baker Hughes, Parks Paton Hoepfl and Brown (PPHB), Energy Information Administration (EIA).
Atlas Offshore Company is a general contractor in oil & gas field mainly focusing on
offshore activities.
Our goal on all of our projects is to obtain our client’s complete satisfaction by performing
our work for the most competitive price, with the highest quality construction and within
the schedule requirements.
Our Capabilities
- Project management & project control - Hook-up, Commissioning and Start-up
- Design engineering - Inspection, Maintenance and repair
- Installation engineering - integrated logistics
- Fabrication and installation - Human resource supply & management
Address: 1st Floor, No. 42, Alvand St., Argentina Sqr., Tehran, Iran
Website: www.atlas-offshore.com Tel: +98 21 88774544
E-mail Address: atlas@atlas-offshore.com Fax: +98 21 88790572
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156