|WITH NEARLY HALF THE WORLD'S AVAILABLE FLOATING RIGS OUT OF WORK, drilling contractors slamming the brakes on spending and still over $50 billion worth of offshore rigs currently under construction, it would seem on the surface that industry prospects for 2017 aren’t looking that promising. However, just as in oil exploration, it’s not what’s on the surface that matters, just drill a little deeper and things can begin to look very different!
Since the summer, financial analysts from around the world have started to predict that 2017 is the year where the Oil and Gas industry will see its most sustained recovery. On August 16th the chief commodity strategist at Merrill Lynch moved the energy sector from “market weight” to “overweight”, estimating that WTI (West Texas Intermediate) will rally to $54/bbl by the end of this year and $69/bbl by next June. Raymond James & Associates, a highly respected American diversified financial services company went further in a note sent to clients, predicting that WTI will jump to around US$80 a barrel by the end of 2017!
Adding more weight, ADC have seen a notable increase in enquiries concerned with the reactivation of cold and hot stacked rigs, in particular the immensely sophisticated and highly automated fifth, sixth and seventh generation rigs. Never before stacked (unlike their forebears), there is real concern about the correct procedures and checks required to bring these sleeping ‘Ferraris’ back to life. And the concerns don’t stop there, with Drilling departments bearing the brunt of the enforced economies, the last thing overstretched Drilling Superintendents, Drilling Supervisors and Drilling Engineers need right now is the additional workload of managing a rig's re-emergence into their active fleet with all the associated unknowns.
“It’s a unique never-before-seen problem that the industry faces, and one requiring an equally unique solution,” commented Austin Hay ADC Director “The specialist RIG INTAKE MANAGEMENT SERVICES provided by ADC, in my view, are currently the only services available worldwide comprehensive enough to get these rigs operationally ready and fit for purpose.”
“30 years of Operator and Contractor experience and industry leading Rig Inspection innovation, contributes to and informs our Rig Intake Management Services. Designed to support internal Drilling departments or provide independent ‘stand alone’ management services, our expert teams of OEM and operationally trained oilfield professionals, deliver the assurance needed to execute drilling programmes with confidence.”
Austin continued, “From assisting the rig screening process, developing rig selection inspection checklists and conducting rig selection inspections, to developing bespoke rig acceptance standards, undertaking comprehensive condition and acceptance inspections and monitoring the close out of non conformances, our Rig Intake Management Services are arguably your most valuable asset when chartering or contracting complex automated drilling rigs whether stacked or not."
Another important aspect of ADC’s Rig Intake Management Services is their innovative commercial approach; after extensive consultation with Operators and Drilling Contractors they have developed a unique lump-sum fee structure which encourages complete transparency and traceability, making it the very FIRST TURN-KEY proposition of its kind within the industry.
Having recently completed projects for Cairn Energy, Hess, Santos and Total, and with a number of enquiries currently being worked on, what could be viewed as speculative predictions for 2017 are now beginning to take on a weight and reality which can only spell good news for all concerned within the Oil and Gas industry.
If you would like more information about ADC’s RIG INTAKE MANAGEMENT SERVICES and how we can aid your global drilling plans for 2017 simply visit our website or contact us using our online form HERE.