Chinese oil rigs heading for the Rockies?

According to a Washington Times report July 11 Canadian oil company EnCana is “considering bringing in Chinese companies to construct and operate drilling rigs in the Colorado Rockies.” The Times quoted EnCana as saying that the move was intended to overcome drilling capacity constraints rather than cut costs.

And according to the Times, Washington politicians are uneasy about allowing Chinese workers this type of access to U.S.-based oil and gas facilities.

“I am totally against the Chinese government running the jobs in our country,” Rep. John Salazar, D-Colo., said. “With the Chinese government getting involved, it’s not even a competitive business model.”

EnCana won’t use Canadian rigs

However, EnCana spokesman Alan Boras told Petroleum News that his company has no plans to use Chinese rigs.

“In the course of discussions in the industry an option for hiring Chinese rigs surfaced, and although EnCana took a preliminary look at this option the company is not pursuing it,” Boras said.

Boras emphasized his company’s policy of maintaining contracts with North American drilling companies.

“EnCana continues to build a (drilling) capacity in the U.S. and Canadian industry and workforce by contracting U.S. and Canadian drillers in various business arrangements such as long-term contracts and agreements to build and employ fit-for-purpose rigs for use in the company’s North American operations,” he said.

EnCana has donated $3 million to the Colorado Mountain College to support oilfield training programs for people in Colorado, Boras said. And, in Canada, EnCana has been cutting deals with the aboriginal community to hire rigs that are owned and manned by people of the First Nations, he said.

“We are very much interested in building the (drilling) capacities in the areas where we work,” he said.

—Alan Bailey