Page 46: of Maritime Reporter Magazine (November 2010)

46 Maritime Reporter & Engineering News idle by Thanksgiving if permits are not issued soon,” Noe said.

Since 2001, 73 jack-up rigs left the

Gulf due typical market factors. “Rigs were leaving before this incident for international jobs because of the high cost of doing business in the Gulf,” Noe said. “There are a lot of challenges. New rules and regulations, high labor costs, legal uncertainty and the threat of hurri- canes…if they can drill cheaper overseas they will.”

According to federal estimates, new drilling regulations could cost the indus- try $183 million per year and could fur- ther slow the pace of exploration and production.

Government estimates tab drilling a deepwater well with a floating rig would cost an additional $1.42 million, due to additional testing requirements and safety barriers. To drill a shallow-water well could cost another $90,000, according to the government’s own estimates.

Industry analysts worry those higher costs would price independents and smaller producers out of the market.

Bennett said Tidewater’s goal is to stay the course. “Our approach as a company is to not change our approach,” he said. “Maintain financial strength and flexibility and don’t bet the farm during good times or bad,” he said.

And while the Gulf Coast oil and gas business employs more than 180,000 people, drillers and operators have for the most part been able to maintain work- forces through the recent moratorium. “Most companies consolidated opera- tions, conducted maintenance work and furloughed in hopes that the work comes back quickly,” Briggs said. “However, if it takes six months to a year to ramp up operations in shallow and deep water, you’ll see significant job losses. Compa- nies can only hang on so long.”

Noe said the same holds true for Her- cules Offshore. “We’re hanging in there,” he said. “All shallow water drilling operations have idle workers on idle rigs and we’re burn- ing through our costs. We are fighting through it. But, at some point soon we need to see a flow of permits (issued) so we can plan our business.”

Moose Delivers

Response Boat

Moose Boats delivered a fully equipped

M2-35 for law enforcement, firefighting, and EMS response boat – dubbed Arun- del Patriot – to Anne Arundel County,

Md. The vessel will be stationed in

Deale, MD just south of Annapolis har- bor. It was put into service in August and is designed to provide multiple levels of response for the extensive shoreline of the Chesapeake Bay and surroundings of

Annapolis. The vessel is operated and jointly staffed by both the Anne Arundel

County Police and Fire Departments.

WORKBOAT ANNUALFEATURE