Abstract
The rig construction industry began in the U.S. in the early 1950s and spread to Europe and Asia in the mid-1970s as offshore exploration increased. At its peak in 1983, 11 U.S. shipyards were engaged in rig construction. Shifts in exploration activity and the general decline in the competitiveness of the U.S. shipbuilding industry led to the entry of new market players, and today, Asia dominates all sectors of the newbuild industry. Since 2000, Asian shipyards have constructed 70 % of all jackups delivered in the world, and almost all semisubmersibles and drillships. The purpose of this chapter is to describe the demand factors and players in rig construction with an emphasis on jackups. We conclude with a brief review of the primary features of construction contracts.
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Notes
- 1.
Natural gas prices also impact the demand for rig construction, but because gas prices are determined on a regional basis and outside the U.S. are often directly tied to the price of oil, Brent crude is considered the single best global indicator of world demand and waterborne production.
- 2.
Perforadora Central and Scorpion are both focused on the <350 ft water depth, moderate environment markets, and the LeTourneau Super 116 and 116E are typically the lowest cost designs for this market.
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Kaiser, M.J., Snyder, B.F. (2013). Construction Markets and Contracts. 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_9
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DOI: https://doi.org/10.1007/978-1-4471-5152-4_9
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