Both Schlumberger and Transocean believe that the upcoming cycle will outpace the 2016-2019 cycle of investment and FID activity.
It looks like the offshore oil and gas drilling market is in the early innings of an upcycle in investment and activity.
Analysts and top offshore drilling executives say that offshore rig utilization and day rates are also rising in a market that is expected to tighten going forward. "While the past eight years have been extremely challenging for the entire industry, it is clear that the recovery in offshore drilling is underway, as contracting activity, utilization rates for high-specification ultra-deepwater and harsh-environment assets, and dayrates all continue to rise," Transocean CEO Jeremy Thigpen"And, with a backdrop of hydrocarbon supply challenges, we are increasingly encouraged that this momentum could continue for the foreseeable future,"As...
The company sees a rapid tightening of the offshore market for high capability drilling assets in various regions with committed drillship utilization remaining above 90%, and further tightening is on the horizon, Thigpen said. Last month, the world's largest oilfield services provider, Schlumberger, expressed a similarly optimistic view on offshore oil and gas drilling.