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Did Offshore Drillers Dodge a Bullet?

Posted March 11, 2016 12:00 AM by Engineering360 eNewsletter

Offshore drillers have not totally escaped the industry downturn, but cutbacks seem to be markedly less than with their land-based peers. The top offshore operator, for example, is down only 14% in rig count, while another top-10 player actually increased rig count from 46 to 47. Numbers from IHS Petrodata show the total worldwide inventory of floating and jackup rigs shrinking by 43 units from 2014 to 2015, with the most damage in Latin America. The Mideast, in contrast, added four rigs in 2015 as a result of long-term charters and Saudi Arabia's decision to increase output. And rigs under construction? They are up from 180 in 2014 to 184 last year, once again proving that optimists rule the drilling industry.


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Join Date: Mar 2005
Posts: 101
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Re: Did Offshore Drillers Dodge a Bullet?

03/11/2016 8:48 AM

I'm not sure if I agree. I read an article recently that one of the biggest offshore drillers Transocean has recently agreed to delay pick-up on 3 or 4 of their new drill ships that are being made by at least a couple of years. If the downward trend continues, other offshore driller companies might do the same as well as more layoffs because I believe that if oil goes above $40 a barrel then all the shale drillers and fracking will go right back into production since a lot of their wells are just sitting idle and waiting to get drilled.

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