Oil Rig Exodus
This is interesting news on oil rigs...
an ongoing exodus [of oil rigs] to the Middle East that could cut shelf production in the Gulf of Mexico by as much as 20% over the next 18 months.
As one story says:
GlobalSantaFe announced Wednesday it had signed a contract with the Saudi Arabian oil company Saudi Aramco to send four of its jackup rigs from the Gulf of Mexico to offshore Saudi Arabia.
The Houston-based offshore oil and gas drilling contractor will start four-year terms in the Middle East in early 2007 for its four rigs -- the Main Pass I and IV, and the High Island I and II.
Questions:
an ongoing exodus [of oil rigs] to the Middle East that could cut shelf production in the Gulf of Mexico by as much as 20% over the next 18 months.
As one story says:
GlobalSantaFe announced Wednesday it had signed a contract with the Saudi Arabian oil company Saudi Aramco to send four of its jackup rigs from the Gulf of Mexico to offshore Saudi Arabia.
The Houston-based offshore oil and gas drilling contractor will start four-year terms in the Middle East in early 2007 for its four rigs -- the Main Pass I and IV, and the High Island I and II.
Questions:
- If the Saudis have so much oil under their sand -- where they can extract it for about $4 per barrel -- how come they're paying top dollar to drill in the water?
- How come Saudi oil production is dropping?
- Not all news is bearish. The Iranians reportedly are storing oil they can't sell on nine Very Large Crude Carriers (tankers) . Why are they pumping and paying to store oil they can't sell?
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posted by Sean Brodrick @ 4:34 PM
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