Offshore Oil Rig Job Latest News

This is the latest news from the offshore oil rig job world and it’s not good for job seekers and you can blame Obama for the lack of offshore oil rig job opportunities in the USA. I have done a lot of work on the website and there is a lot of new company information, also direct links to drilling company website employment pages. We had a lot of database problems and this prevented many getting the newsletter, sorry about that but it’s all fixed now. This newsletter is being sent from offshore on a new rig.

Oil Industry Recruitment Fraud Alert

There are scams now operating with virtually every major oil and drilling company. The bottom line is that absolutely no drilling company or oil company will send you a job offer by email that you have not even applied for, BE WARNED. I also again caution you about paying out any money to companies who demand a fee in return for finding you a job. The reality is you will never get a job through them. They will spam your resume to every email address and in many cases no drilling or related companies will accept unsolicited Resumes that are not applying for actual advertised positions. In many cases you must enter all your details online through a website. Even paying good money to companies who will give you a list of companies to apply for is wasting hard earned cash. I will keep trying to give you the best information available. The conmen are also using the networking site LinkedIn to advertise this scam through others although I understand some get spam emails also for this

Drilling Activity Report

US drilling has continued to rise and has risen by 11 to 1,651 rotary rigs that are working this past week while this time last year it was just 985. Land drilling operations have risen by 8 rigs to 1,616 rotary rigs at work. Also inland water drilling activity has expanded by 2 rigs to 14 units operating. Offshore drilling has increased by 1 rig to 21 active rigs, which are all located in the Gulf of Mexico. This is no doubt caused by the Obama administrations deepwater drilling moratorium and suspension.

If the total US based drilling rigs that are working, 985 were drilling for natural gas. The number of rigs drilling for oil increased by 19 to 655. Oklahoma has seen the largest increase which is up by 16 with 142 rotary rigs working this past week. New Mexico and Colorado each gained 1 rig for respective counts of 67 and 66 units drilling. Half of the other states were unchanged, including Louisiana, 184; North Dakota, 132; Arkansas, 40; California, 35; West Virginia, 24; and Alaska, 5. Pennsylvania was down 1 rig to 89. Wyoming lost 2 to 42, and Texas dropped 4 to 716. Canada’s rotary drilling rig count has decreased by 16 to 379, when compared with 164 rigs drilling in the same period last year.

The increases have been driven by shale drilling, with significant increases in the number of rigs working in shale areas. The number of land drilling rigs working in Texas, which contains the Haynesville, Barnett and Eagle Ford Shale plays and has increased by 94.5 percent. In Pennsylvania, which owns the massive Marcellus Shale play, the number of drill rigs working increased by 91 percent year over year. With the biggest increase, the number of rigs working in North Dakota, which contains the Bakken Shale play, increased year on year by 212 percent. If you are trying to get into drilling anywhere as a start point then you might want to target operators in these areas for a job start.

Job Losses and Low Job Prospects

Already a number of GOM contracted rigs to relocate elsewhere resulting in job losses. Even shallow water jackups that drill in up to 500 feet are being affected. BP announced plans to set up a $100 million fund to support unemployed rig workers experiencing economic hardship as a result of the US deepwater drilling moratorium. There are significant protest movements on this action and current estimates say 23,000 oil field jobs have been lost as a result, so its going to be real hard for entry level people to get a job start.

The Offshore Drilling Ban

US Interior Sec. Ken Salazar initially imposed the 6-month moratorium on deepwater drilling after the Macondo well blowout and resulting oil spill. BP operates Macondo, which was drilled by Transocean’s Deepwater Horizon semisubmersible. The semi submersible sank after an April 20th explosion and fire, which killed 11 rig workers. Macondo is in 5,000 ft of water on Mississippi Canyon Block 252. A New Orleans federal judge granted a temporary injunction against the moratorium on June 22, prompting Salazar to impose another ban on July 12 that was based on drilling configurations and technologies instead of water depths.

Companies Moving Staff and Rigs

The federal moratorium on deep-water offshore drilling has also resulted in a Houston-based international oil-field services company Baker Hughes transferring hundreds of employees out of the Gulf of Mexico, and they have transferred 300 of its 2,100 Gulf employees overseas and they are also moving 25 percent of their assets. More good job opportunities that are gone.

Diamond Offshore has already moved 2 of its deepwater drilling rigs out of the Gulf of Mexico for work outside the US as there is great uncertainty about the length of a drilling moratorium on new deepwater drilling in the gulf. The question remains is how many deepwater rigs might be relocated. Diamond Offshore Drilling has moved the rig Ocean Endeavor to a new drilling contract in Egypt. Diamond has six other rigs in the Gulf that are sitting idle because of the ban. The move means 30 workers from Louisiana and Mississippi lost their jobs will lose their jobs and the positions will now go to Egyptians. They have moved a second rig over to West Africa with further job losses. They say they could end up losing 400 or so jobs when done

The International Association of Drilling Contractors (IADC) has urged its members to contact federal lawmakers to convey IADC’s dismay regarding the blanket suspension of deepwater drilling in the Gulf of Mexico. One industry insider stated that just about every rig sitting in the Gulf of Mexico is trying to find a way out of the gulf.

Drilling Contractor News

Drilling contractor Noble Corp. has announced that they will purchase the privately owned Frontier Drilling for $2.16 billion. Frontier has three dynamically positioned drillships, two conventionally moored drillships and a conventionally moored deepwater semisubmersible rig.

Venezuela has nationalized 11 oil rigs belonging to Tulsa-based Helmerich & Payne (H&P). Hugo Chavez’s seizure of the H&P rigs is the biggest seizure of drilling machinery in years. Helmerich said the rigs were idled after Venezuela stopped paying for oil service activities and accumulated a debt of more than $40 million.