Why helicopters?

Helicopter lease rates in the Gulf of Mexico can easily run into the hundreds of thousands of dollars a MONTH, with added surcharges for fuel, extra hours, and night flights... how can anyone afford to pay such rates, and why does everybody seem to travel by helicopter in the gulf?  


1. Particularly in support of drilling operations, time is money. A deepwater drilling rig may lease for over $500K/day, and if the drilling project is held up for a day because the rig needs a part or a specialized contractor to move forward, the added expense for helicopter support is a mere rounding error in the drilling budget, which is in the multi millions for each well drilled.  


This brings up an interesting point.  If oil companies are making those obscene profits, do you imagine that any of those profits are rolled into further exploration, which is obscenely expensive?  And do you think that each time they drill a hole that they actually HIT something that gives them a big payoff?  Sometimes. And sometimes they're just out several million for a dry hole.  It happens.  


2. Drilling and production operations are quite geographically dispersed even in the Gulf of Mexico, and the tendency is to move toward deeper water, further and further out.  If you have twenty or thirty people spread out at various locations up to 150 miles offshore, a relatively fast crew boat (20 knots or so) can take 18 hours to do a crew change, while a couple of helicopters can pull the same crew change before lunch gets cold.  A large drilling operation can easily have 80-100 people on board one rig.  Figure in additional overtime costs for paying your outgoing crews for the delay, and the high rates for third party contractors waiting on transportation, and the helicopter again begins to look like a pretty good deal.  


3. Some deepwater exploration projects are served by increasingly larger and more expensive aircraft such as the Sikorsky S-92, which sells for around $20 million per copy.  There are reasons for this too, and reasons that companies are willing to pay a premium for such aircraft.  


One is that newer and more capable aircraft are safer, with additional power and up to date survivability equipment if the worst happens and the helicopter does go down.  Top tier companies are willing to pay a premium for the safety of their people, mindful of the costs of cutting corners and the price of liability and lawsuits.   


The second is a function of distance offshore.  The FAA limits a two-pilot crew to ten hours of flight time per day.  If a round trip to a location 250 miles offshore takes 4 flight hours, then you get two trips per day, per helicopter, period.  


So the ONLY way to increase your throughput of people in and out of your deepwater properties is to use faster aircraft (more flight time per day) or bigger aircraft (more seats on each flight).  


And now you know.