OCR Text |
Show I Irflll KEY INDUSTRY SUPPORTS OIL AND GAS EFFORTS Indispensable to the major oil concerns con-cerns engaged in the search for and production of oil and natural gas is a group of companies in the category, Offshore Of-fshore Drilling and Oil Field Service Companies. Without these highly specialized units, oil and gas would be much more costly to produce, assuming that each oil or gas explorer maintained maintain-ed similar facilities rather than contracting con-tracting for services as needed. Within the drilling service and equipment equip-ment groups there is a breakdown into specialities. Foremost and probably the largest category is that of onshore and offshore contract drillings. While oil companies generally maintain their own onshore drill rigs, relatively un-complex un-complex and portable, there is a need for contract land drilling for very deep wells, unusual geological conditions, and foreign utilization, frequently in remote areas. OFFSHORE DRILLING Mostly on a contract basis to oil operators, offshore drilling calls for rigs to meet varied conditions. Principal Prin-cipal are rigs for shallow waters ("jack-ups" with legs standing on the seabed), for deep ocean areas ("semi-submersibles" ("semi-submersibles" with drill platforms supported sup-ported by submerged pontoons), and for very deep offshore drilling ("drill ships" capable of working in over 1000' deep waters). Contract drilling generally covers a range of support services ser-vices in addition to the drill rig; essential essen-tial are drill: 2 personnel, marine drivers, heleeopier services, and marine supply vessels. MARINE AND ONSHORE CONSTRUCTION A vital link in the oil and gas production produc-tion chain is the construction of drill platforms with related hardware, production pro-duction gathering and processing systems, and-most important-offshore pipelaying for transport of oil and gas from fields far at sea to refineries ashore. This in itself is today a highly sophisticated technique involving great water depths, large-diameter pipes, and highly specialized "lay-barges," again on a contract basis. In general, marine and onshore construction con-struction companies are currently beset by slow demand for their services. ser-vices. With some questions as to the direction of oil and gas policy on national na-tional and international levels, companies com-panies have been reluctant to commit expansion plans to the contract stage. However, this situation may improve, based on new estimates of capital spending spen-ding plans by major operators. DRILL RIG CONSTRUCTION Corollary to permanent facility construction con-struction is the fabrication of drill rigs and platforms, usually onshore, utilizing utiliz-ing shipyard-like facilities. These involve in-volve substantial capital outlays, for example, a recent announcement of new construction covered four "jack-up" "jack-up" types to cost $115 million. Not only are drill rigs becoming more costly to construct, but it follows that these higher costs must be recouped by rental rates to the operator. Wages have also escalated; thus, "wild-cat" drilling today to-day is guided by the chances of success in terms of oil and gas versus the large investment' to be committed. OUTLOOK Companies in the oil and gas field service ser-vice category should display growth in the years ahead, as the search for energy becomes more incentive-oriented. incentive-oriented. Expanded service facilities are now meeting strong demand, which should continue. One plus factor for this group is its general immunity to the pressures of controversy in regard to profits, control and decontrol of production produc-tion and product, etc. that now besets major oil corporations. The oil and gas industry, and consequently conse-quently the contract drilling and service ser-vice companies, will continue to base operating policies on supply and demand, de-mand, with the latter factor heavily in the balance today. Also to be considered con-sidered are inflated costs vs. market prices, and national policies covering the entire industry. On the average it takes 1.2 seconds to make a field goal in football, including the snap from center, the ball placement and an accurate hit by the kicker |