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Gas Oil Rigzone

Offshore Drilling Poised for an Upswing in 2020?

Offshore drilling has been depressed but, now with increased activity, oil production could peak in 2020 before joining shale in a slowdown that could dramatically rewrite market supply predictions. Overall rig demand is forecast to rise from 473 units in 2019 to 550 units in 2021, an increase of 16 percent according to IHS forecasts. Jeremy Lake, Vice President, Transocean, confirms the 6 percent rise in active floating rigs in the first half of this year and forecasts a market utilization rate above 80 percent. Lake also expects demand for jack-up rigs to increase from 345 units in 2019 to 388 units in 2021, a rise from 69 to 84 floaters and the number of drillships to increase from 59 to 78.  

Market Drivers

Increasing interest in offshore drilling owes much to industry’s success in reducing costs by between 30 and 40 percent and increasing productivity.  “We’ve probably seen an incremental improvement of about 30 percent on some of our high-spec rigs operating in the Gulf of Mexico and around the world,” states Brad Alexander, Vice President of Transocean. Read more

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