Fewer available drilling rigs, increased costs and growing lead times all point to the offshore rig market moving into a multi-year supercycle.
According to Esgian Rig Analytics, offshore rig demand is finishing 2022 strong, with 2023 demand expected to be even stronger.
“The practical rig supply is tight. Not all the units that are idle are truly available or ready to be returned to market in a short time,” Cinnamon Edralin, Esgian’s head of rig market research, said during a 2022 year in review and 2023 outlook webinar on Dec. 7. “Costs have increased across the board, and lead times are growing. Supply chain issues are going to continue to be a challenge globally. And that being said, the rig market is moving into a multi-year supercycle.”