How much does an offshore oil rig cost?

With an average price tag of $650 million, offshore drilling is an expensive proposition. Well, as good places to drill on land dry up or are already being tapped, people turn to the ocean. There is a lot of oil beneath the ocean floor, so the higher startup cost offsets the long term return.

What is an offshore oil rig called?

An oil platform, offshore platform, or offshore drilling rig is a large structure with facilities for well drilling to explore, extract, store, and process petroleum and natural gas that lies in rock formations beneath the seabed. Many oil platforms will also contain facilities to accommodate their workforce.

What is life like on an offshore oil rig?

Working offshore can involve a grueling schedule, cramped quarters, and being away from home for weeks or even months at a time. Working 13+ hour days can be hard to get used to, but having weeks off to spend with family and good pay are draws for this sometimes dangerous, always interesting job.

How much does it cost to run an oil rig per day?

The rig daily rate will vary according to the rig type, water depth, distance from shore and drilling depth. For onshore, it will be <100,000 $/day, and for deepwater offshore Gulf of Mexico, it can be very high—up to 600,000 to 800,000 $/day (values are from 2010).

Why offshore oil drilling is bad?

Offshore Drilling Is Bad for the Environment. This poses an unjustifiable risk to the Bay, our coasts, and the economy. Toxic Pollution: Normal offshore drilling operations release toxic pollution into the air and water. A Risk to Animals: Wherever there are oil spills and excess pollutants, wildlife is risk.

Do oil rigs touch the bottom?

Mobile Drilling Platforms. A jack-up rig can raise and lower itself on three or four massive “legs.” Oil companies float these structures out to a drill site and then lower the legs until they touch the sea floor and elevate the rig out of the water.

Can you have a phone on an oil rig?

Leisure facilities differ, but modern rigs often have games rooms, gyms and cinemas. Before internet, workers could only call home once a week for 6 minutes! These days most rigs have wifi for Skype, social media and emails on tablets and laptops, although mobile phones are often banned and phone signal is rare.

What is the payout point?

The point at which all costs of leasing, exploring, drilling and operating have been recovered from production of a well or wells as defined by contractual agreement.