HOUSTON, SEPT. 6 — Consistently higher oil prices and greater cost-efficiency in offshore projects are driving increased demand for offshore drilling rigs through 2020, particularly for deepwater projects, according to new analysis from IHS Markit on Wednesday.
In its first worldwide mobile rig forecast for 2020, IHS Markit, a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide, estimated the average global demand for mobile offshore drilling units to increase by approximately 13 percent between 2018 and 2020 as the offshore market slowly emerges from its prolonged downturn.
IHS Markit expected global offshore rig demand will average 521 units in 2020, exceeding the average of 453 units expected through 2018.
“Broadly speaking, much of this increase in global demand can be attributed to the price of oil being sustained at a higher level than when the downturn was in full swing,” said Justin Smith, offshore rig analyst at IHS Markit and an author of the rig forecast.
“In addition, costs associated with the offshore industry have been slashed in recent years. This has led operators to reconsider exploration, appraisal, and development programs that were not economically viable while the market was bottoming-out,” said Smith.
Deepwater rigs, which are defined by IHS Markit as units that can operate in more than 3,000 feet (about 915 meters) of water, will see the biggest rise in demand particularly in the drillship segment, with a number of longer-term programs set to begin in 2019 and run through 2020 and beyond, particularly in the drillship segment. – XINHUA
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