Question-and-Answer Session
Operator
(Operator Instructions). And we will take our first question from Jud Bailey with Jeffries & Co.
Judson Bailey - Jeffries & Co.
Question on jackup rates going forward, you look at global utilization right now it's been bouncing around 70% for a while now although there is a pretty big disparity between several markets most notably the Gulf of Mexico and West Africa. Could we see a situation do you think where if activity increases in certain regions more quickly that we could see day rates go up in some regions and stay flat in others or even soften a little more, due to the transportation cost between some of the major regions?
Dan Rabun
Yes. Jud, this is Dan. I think as you realize all these markets are very different and certainly some of them react to pricing improvement utilization more quickly than others. So the answer to your question is yes. I mean, you could see a uptick in the Gulf of Mexico and since there is very little supply of premium jackup's those rates could have some positive momentum if utilization were to pick up as opposed to say Asia where there's much larger supply of available rigs for particular jobs in the Middle East as well.
Judson Bailey - Jeffries & Co.
Okay.
Dan Rabun
Same thing in the North Sea, I think the same dynamic in the North Sea if utilization were to pick up you could see rates move up more quickly but that's historically been the case.
Judson Bailey - Jeffries & Co.
Okay. And then on the Gulf of Mexico, one of your competitors said on one of the calls this morning that they're talking to customers about six to 12 month contracts and so it seemed like maybe what you are seeing as far as the demand increase might be more than a recovery, post hurricane season. Could you maybe talk a little bit about your discussions with the customers for work in the Gulf?
Dan Rabun
Yes, I think the dialogue over the last few weeks has been fairly brisk. There are some customers out there that are trying to take advantage of where the pricing is now and talking longer term. So yes, there are customers out there talking for longer periods in the well-to-well, which typically you find in that market.
Judson Bailey - Jeffries & Co.
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