Oil Price Slump Brings Benefit of Lower Rig Costs for Explorers
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The plunge in crude prices isn’t all bad news for oil explorers. The cost of drilling rigs is expected to drop by about 40 percent as the market adjusts to lower spending on projects, according to Karoon Gas Australia Ltd.
Rigs that had cost $300,000 to $400,000 a day to rent over the past few years could fetch $175,000 to $250,000 a day in the next six to 12 months, Karoon’s Managing Director Robert Hosking said in a phone interview.