Rigs On The Run

The shallow waters of the Gulf of Mexico, once a hotbed for natural gas exploration, are starting to look a little empty.

In recent months, dozens of jack-up drilling rigs, which sit atop retractable legs that stand on the seafloor, have shipped out of the area. Left behind is the lowest number of the rigs seen in the Gulf in 28 years.



The rigs, which generally operate in 400 feet of water or less, are leaving for more favorable contracts in the Middle East, West Africa and Latin America, where rig supplies are tight and demand is high.

The decision to relocate has been made easier by a decline in U.S. natural gas prices, smaller returns from wells in the shallow waters of the Continental Shelf, and a huge rise in rig insurance costs following the 2005 hurricanes, analysts and rig operators said.

Houston Chronicle