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The Offshore Frontier

2019 NOV census shows robust international land rig utilization but softening in North America onshore

Except for harsh-environment semis, global offshore fleet continues to see a very slow recovery, although 69% utilization is the highest it’s been since 2015 By Tony Crawford, Tarjei Myklebust and Aylar Ibrahimoglu, National Oilwell Varco Rig demand in this year’s National Oilwell Varco census has shifted in both areas of geographic activity and in rig type. Late 2017 and 2018 demonstrated promising improvements in global land utilization rates and modest recovery in offshore drilling. 2019 can be characterized by strong international rig utilization and demand for land, steadily improving demand for offshore and weakening demand for land rigs in North America. Offshore rig demand in North America is improving slightly, but it has yet to see the type of growth ...

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IHS Markit: Offshore dayrates will be better in 2020, just not as much as drillers hope for or need

As debt covenants come due, offshore drilling contractors may be forced to push harder for higher dayrates By Linda Hsieh, Editor & Publisher Offshore drillers can expect to see a better market in 2020, but it won’t be the kind of dramatic recovery that the industry is hoping to see. “It will be an improvement over 2019, just not dramatically,” said Cinnamon Edralin, Senior Offshore Rig Market Analyst for IHS Markit. Globally, IHS Markit expects demand to increase by about 18%, or about 90 rigs, over this year. That translates into approximately 561 units – 400 jackups, 86 semis and 75 drillships, according to Ms Edralin. More than half of that increase is expected to come from the jackup segment. ...

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As operators reshuffle priorities, offshore exploration is losing out

Development drilling is likely to increase, but it can’t offset a bigger reduction in exploration drilling in 2020 By Linda Hsieh, Editor & Publisher The attacks on two Saudi Aramco oil facilities on 14 September took out approximately 5.7 million barrels per day from the global oil supply, leading to a quick spike in oil prices to nearly $70 in the second half of September. However, by early October, things seemed to be back to business as usual, with oil prices settling down into the $50s. “Of course, a large portion of the increase in oil prices was a risk factor premium,” said Audun Martinsen, Partner and Head of Oilfield Service Research for Rystad Energy. “It will be a short-term ...

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