Abstract
Most of the shipbuilding activity in the U.S. in support of the offshore oil and gas industry occurs in the Gulf Coast states of Alabama, Mississippi, Louisiana and Texas. Between 2000 and 2012, two U.S. shipyards delivered a total of 26 jackup rigs worth $4.5 billion. In this final chapter, we quantify the labor and material requirements associated with jackup construction in the United States. Approximately $50–$70 million per rig is spent on labor at the shipyard and $60–$90 million per rig is spent on drilling equipment and the rig kit which flow to manufacturers throughout the region. The U.S. jackup industry competes with international markets with lower labor costs and higher productivity, and profit margins in the sector are expected to be low on a relative basis. Total annual employment is estimated between 800–3,900, and although small with respect to other offshore industries, is regionally and culturally important.
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- 1.
ABS steel is steel that is fabricated to ABS specifications. ABS A steel is 34 ksi and ABS AH36 is 51 ksi.
- 2.
Compensated gross tonnage is a unit of measurement developed by the Organization for Economic Cooperation and Development that allows relative comparison of shipbuilding outputs across countries and vessel types. Compensated gross tonnage is defined by A*GTB, where GT is a vessel’s gross tonnage, and A and B are class-specific conversion factors.
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Kaiser, M.J., Snyder, B.F. (2013). Labor and Material Requirements for U.S. Jackup Construction. In: The Offshore Drilling Industry and Rig Construction in the Gulf of Mexico. Lecture Notes in Energy, vol 8. Springer, London. https://doi.org/10.1007/978-1-4471-5152-4_15
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DOI: https://doi.org/10.1007/978-1-4471-5152-4_15
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