MMS ENVIRONMENTAL STUDIES PROGRAM:  ONGOING STUDIES

MMS OCS Region:

Gulf of Mexico

Title:

Analysis of the Oil Services Contract Industry in the Gulf of Mexico Region (GM-07-09)

Planning Area:

Central and Western

Total Cost:  $117,728

Period of Performance:  FY 2008-2010 

Conducting Organization:

Eastern Research Group

MMS Contact:

Sindey Chaky

Description:
Background: The oil service industry is distinct from the integrated and independent oil companies.  Contractors perform a wide variety of tasks such as drilling, processing drilling mud, well service and workovers.  They engage in rig, pipeline, and platform construction.  Oil service industry contractors account for roughly 60 percent of all offshore employment resulting from first-round industry spending in the Gulf of Mexico, yet the Bureau has only a limited understanding of this very important industry group.  In recent years, this group has become even more important as more and more functions are contracted out – a trend that is likely to continue in the future.

Objectives:  The objective of this study is to develop an understanding of the oil services contract industry in the GOMR.

Methods:  The methods will include a detailed literature review, data collection from public sources, discussions with key industry representative, analysis and synthesis of the collected data and information. The report shall present data in tabular format and analysis and synthesis in narrative form.

Products:  A final report publication and annotated references.

Importance to MMS:  This study will help MMS meet the requirements of the OCS Lands Act and NEPA.  Examination of the oil services contract industry in the Gulf of Mexico Region will provide a basis for future economic analysis in MMS NEPA documents.  In particular, this study will provide information and data that will update the MAG-PLAN (MMS Alaska-Gulf of Mexico Modeling using IMPLAN) economic model.  Contractors for MMS created this model in 2005, which is used to forecast employment and other variables.

Current Status:  Study awarded and research began May 2008.

Final Report Due:

May 2010

Publications:

None

Affiliated WWW Sites:

None

Revised date:

July 2008

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