By Sebastine Obasi

Despite the global six months fall in oil prices, Nigeria and other West African oil producing countries recorded a stable rig count in December.

According to Rig Data, a worldwide offshore rig fleet information report obtained by Vanguard, current competitive offshore rig utilisation of the region stands at 75 per cent against 67 per cent recorded in November. Six months ago, the rig count stood at 75 percent compared to 90 percent a year ago.

Other parts of Africa recorded rig utilisation of 38 percent against 43 percent recorded in November.

However, the United States rig count decreased to 68 percent against 75 percent recorded in the previous month. Specifically, the average United States rig count for December 2014 was 1,882, down 43 from the 1,925 counted in November 2014 and up 111 from the 1.711 counted in December 2013.

The international rig count for December 2014 was 1,313, down 11 from the 1,324 counted in November, and down 22 from the 1,335 counted in December 2013. Also, the international offshore rig count for last December was 338, down 3 from the 341 counted in November, and up 32 from the 306 counted in December 2013.

A breakdown of the rig utilisation of other regions of the world shows that Far East Asia recorded 17.5 percent against 69.2 percent. Six months ago the region recorded 72.2 percent, while a year ago, it recorded 79.3 percent. South Asia recorded 80 percent compared to 83 percent recorded in November; while South East Asia recorded 71.2 percent against 73 percent it recorded in the same period.

The average Canadian rig count for December 2014 was 375, down 46 from the 421 counted a month before, and up 3 from the 372 counted in December 2013.

There is no significant change in the East European region, where the rig count remained 50 percent for both for December and November 2014, while it was 100 percent six months and one year ago. However, in the North Sea Europe, there was a decline, as the region recorded 93 percent against 95 percent in November, while it was 81.3 percent six months ago, against 88.2 percent a year ago.

Justifying the decline in international rig utilisation, Mr. James Williams, an economist at WTRG Economics, an energy-research firm in Arkansas, United States of America, said. “We should see the rig count going down at least through the end of the first quarter as a reaction to the low prices. By midyear, we should see measurable impacts on production.”

“The rig count is falling because oil prices are falling,” Carl Larry, a Houston-based director of oil and gas at Frost & Sullivan, said. “The margins just aren’t there.”