OCS Study BOEMRE 2010-042 Coastal Marine Institute Fact Book: Offshore Oil and Gas Industry Support Sectors U.S. Department of the Interior Bureau of Ocean Energy Management, Cooperative Agreement Regulation and Enforcement Coastal Marine Institute Louisiana State University Gulf of Mexico OCS Region OCS Study BOEMRE 2010-042 Coastal Marine Institute Fact Book: Offshore Oil and Gas Industry Support Sectors Author David E. Dismukes December 2010 Prepared under BOEMRE Cooperative Agreement 1435-01-99-CA-30951-85248 (M07AC12508) by Louisiana State University Center for Energy Studies Baton Rouge, Louisiana 70803 Published by U.S. Department of the Interior Cooperative Agreement Bureau of Ocean Energy Management, Coastal Marine Institute Regulation and Enforcement Louisiana State University Gulf of Mexico OCS Region DISCLAIMER This report was prepared under contract between the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) and Louisiana State University’s Center for Energy Studies. This report has been technically reviewed by the BOEMRE, and it has been approved for publication. Approval does not signify that the contents necessarily reflect the views and policies of the BOEMRE, nor does mention of trade names or commercial products constitute endorsement or recommendation for use. It is, however, exempt from review and compliance with the BOEMRE editorial standards. REPORT AVAILABILITY This report is available only in compact disc format from the Bureau of Ocean Energy Management, Regulation and Enforcement, Gulf of Mexico OCS Region, at a charge of $15.00, by referencing OCS Study BOEMRE 2010-042. The report may be downloaded from the BOEMRE website through the Environmental Studies Program Information System (ESPIS). You will be able to obtain this report also from the National Technical Information Service in the near future. Here are the addresses. You may also inspect copies at selected Federal Depository Libraries. U.S. Department of the Interior U.S. Department of Commerce Bureau of Ocean Energy Management, National Technical Information Service Regulation and Enforcement 5285 Port Royal Road Gulf of Mexico OCS Region Springfield, Virginia 22161 Public Information Office (MS 5034) Phone: (703) 605-6040 1201 Elmwood Park Boulevard Fax: (703) 605-6900 New Orleans, Louisiana 70123-2394 Email: [email protected] Telephone requests may be placed at (504) 736-2519, 1-800-200-GULF, or Rush Orders: 1-800-553-6847 Fax: (504) 736-2620 CITATION Suggested citation: Dismukes, D.E. 2010. Fact book: Offshore oil and gas industry support sectors. U.S. Dept. of the Interior, Bureau of Ocean Energy Management, Regulation and Enforcement, Gulf of Mexico OCS Region, New Orleans, LA. OCS Study BOEMRE 2010-042. 138 pp. iii ABSTRACT The purpose of this research has been to examine the nature and trends associated with a wide range of industries and activities that support offshore oil and gas exploration, development, and production. The sectors and activities examined include: drilling contractors; underwater contractors (diving); mud, drilling, and lubricants; air transport; water transport; geophysical services; dredging; catering; workover services and environmental consulting and mitigation. A number of issues and aspects were examined for each of these sectors that includes a basic description of the industry and the types of services provided, typical industry characteristics that includes an examination of typical facilities, the geographical distribution of the firms and their location along the Gulf of Mexico, a description of each sectors’ labor force, and identification of typical or leading firms in those particular sectors. Each chapter includes an examination of the industry trends and outlook for that respective support sector/activity including a discussion of the impacts that hurricane activity of 2005 had on each of the various support sectors and activities. v TABLE OF CONTENTS Page LIST OF FIGURES ....................................................................................................................... xi LIST OF TABLES....................................................................................................................... xiii ABBREVIATIONS AND ACRONYMS......................................................................................xv EXECUTIVE SUMMARY ............................................................................................................ 1 I. DRILLING CONTRACTORS ............................................................................................... 5 A. Description of Industry and Services Provided ...............................................................5 B. Industry Characteristics...................................................................................................5 1. Typical Facilities......................................................................................................5 2. Geographical Distribution........................................................................................9 3. Labor Force............................................................................................................10 4. Labor Statistics.......................................................................................................11 5. Typical Firms.........................................................................................................12 C. Industry Trends and Outlook .........................................................................................14 1. Rig Count...............................................................................................................14 2. Rig Contractors......................................................................................................16 3. Hurricane Impacts..................................................................................................19 4. Outlook ..................................................................................................................21 D. Chapter Resources.........................................................................................................22 II. UNDERWATER CONTRACTORS .................................................................................... 23 A. Description of Industry and Services Provided .............................................................23 B. Industry Characteristics.................................................................................................26 1. Typical Facilities – Diving.....................................................................................26 2. Typical Facilities – ROVs......................................................................................27 3. Geographical Distribution......................................................................................31 4. Labor Force............................................................................................................32 5. Typical Firms.........................................................................................................33 C. Industry Trends and Outlook .........................................................................................35 1. Trends ....................................................................................................................35 2. Hurricane Impacts..................................................................................................36 3. Outlook ..................................................................................................................37 D. Chapter Resources.........................................................................................................37 III. MUDS, DRILLING FLUIDS AND LUBRICANTS ............................................................ 39 A. Description of Industry and Services Provided .............................................................39 B. Industry Characteristics.................................................................................................40 1. Typical Facilities....................................................................................................40 2. Geographical Distribution......................................................................................44 3. Labor Force............................................................................................................44 4. Typical Firms.........................................................................................................45 vii TABLE OF CONTENTS (continued) Page C. Industry Trends and Outlook .........................................................................................46 1. Trends ....................................................................................................................46 2. Hurricane Impacts..................................................................................................47 3. Outlook ..................................................................................................................47 D. Chapter Resources.........................................................................................................47 IV. AIR TRANSPORT............................................................................................................... 49 A. Description of Industry and Services Provided .............................................................49 B. Industry Characteristics.................................................................................................49