As operators and the supply chain adapt to challenging market conditions, we explore the five trends that look set to dominate the offshore service sector this year and beyond.
1) Continued consolidation
A rise in collaboration and joint venture projects across the supply chain has become increasingly common in order to improve efficiency and offer integrated solutions to operators' more streamlined developments.
In a cautious market, operators increasingly look towards suppliers that offer integrated services, while greater stability in world oil prices may also open the door to further M&A activity during the year.
2) More FIDs on the horizon
With operators focused on cost reduction, the increased capex demand will be driven by projects with economics that are robust enough to reach a final investment decision (FID), despite the downturn.
Our Global Project Tracker allows you to monitor the status of all major pre-FID projects worldwide, enabling you to identify upcoming opportunities in the pre-FID phase, so that you can focus your efforts on the most viable prospects.
3) Low drilling demand
The global rigs market has suffered from early contract terminations and falling average day rates as operators allow high-end rigs to roll off contract. Although the rate of decline in rig count has now passed its peak, current forecasts indicate exploration drilling will remain on a downwards trajectory.