LAUSR

ABSTRACT The US jackup construction industry has historically been the major provider of newbuilt drilling rigs operating in state waters and on the US. Outer Continental Shelf. From 2000 to 2010, a total of 26 jackups were delivered to the US market by two US shipyards. The purpose of this paper is to examine the US construction market that supplies jackup rigs in the region. Cost, labour, and material estimates for rig construction are developed and it is estimated that between 1000 and 3500 people were directly employed by the rig newbuild industry in the US Gulf Coast between 2000 and 2010. The US jackup construction industry is geographically localised and generates about $360 million in annual revenue, but its long-term outlook is uncertain because shallow water drilling in the region has been declining for the past two decades as capital flows to onshore resource plays and the deepwater sector. Regression models for rig construction cost are used to calibrate capital expenditures and steel weight requirements.