Labor and material requirements for U.S. jackup construction

Document Type

Article

Publication Date

1-1-2013

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.

Publication Source (Journal or Book title)

Lecture Notes in Energy

First Page

231

Last Page

246

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