Specialist
Former Global Category Manager at Chevron Corp
Agenda
- Customer-based evaluation of offshore drilling fleets, impact of evolving rig contracting strategies and 2022 offshore drilling activity outlook
- Impact of financial distress on contract selection
- Key drilling technology such as hoisting equipment and well control systems, and capabilities to meet demands from key deepwater customers
- Impact of supply chain and labour challenges
Questions
1.
Oil prices have recovered over the last 12-18 months. What’s your offshore drilling activity outlook? Do you expect an uptick in 2022 vs activity so far in 2021?
2.
You mentioned you expect activity levels to be maintained over the next 12-18 months. Are there any types of rigs or geographies where the market might be a little bit tighter or day rates could start to increase? Are there any areas of potential strength?
3.
How have deep-water operators such as Shell or Chevron’s contracting strategies evolved? There seem to be increasingly fewer companies participating in deep water. How has that impacted the market and those companies’ approaches to rigs?
4.
Which rig companies could be poised to gain market share due to evolving rig contracting strategies? What factors would help an offshore rig contractor gain that share?
5.
Are there rigs that you think won’t be able to find work when they get to a certain age? Can drilling rig operators add capabilities to extend the useful life of a rig or are they better off with new builds?
6.
How do customers such as Chevron evaluate companies going through financial stress or bankruptcy? You mentioned Noble, which was bankrupt, but has merged with Pacific Drilling and has announced a merger with Maersk. Diamond Offshore has been bankrupt, Seadrill has been through it. Is there hesitancy around working with these companies, or is it something that financial markets and the courts are able to sort out?
7.
Do you think the Noble-Maersk merger announced in November 2021 will provide more operational synergies and capabilities than past agreements in this sector?
8.
You mentioned some of the solid operational capabilities with the Maersk, Noble and Pacific Drilling rigs. What technologies or capabilities do you think will be required on these rigs specifically?
9.
What percentage of the rigs already have the features you mentioned such as safety in the hoisting systems? How many of them still need to be making investments?
10.
If a drilling contractor wanted to invest in hoisting equipment or well control systems and make these kinds of installations, would it be difficult to get the hardware and software required to meet the highest standards? Alternatively, would a company be able to do so if it chose to make these investments?
11.
What investments might companies such as Chevron, Shell, BP or Exxon be willing to sponsor, whether it’s on a new build, a retrofit or even moving rigs between markets? Alternatively, is the situation still that there are plenty of rigs available with the right capabilities, meaning customers don’t need to sponsor?
12.
As far as I know there isn’t a completely remotely operated rig with nobody on it yet. How do major companies such as Chevron evaluate the labour situation on rigs or evaluate crews on specific rigs? Are certain crews preferred? How would they be evaluated?
13.
There are supply chain issues in any industries where it’s tough to move people or goods around. How much of a risk is this in the offshore drilling industry, or is it reasonably well-managed at current activity levels?
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