Insight
Cost inflation: Day rates rising in a fundamentally different offshore rig market
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Global marketed utilisation above 75% as day rate inflation hits the offshore rig sector. Leading-edge day rates for spot contracting are now approaching US$400,000/day. Utilisation is at full capacity in the US Gulf of Mexico. It may feel like a repeat of the mid 2010's but this upcycle is fundamentally different. Rig contractors will focus on much-needed margins while operators will feel the pressure of cost inflation steadily building.
Table of contents
- Executive summary
- Quite a different and resilient rig market from the last upcycle
- Operator push and rig contractor pull: impact of market sentiment
- Making every dollar count: operator strategies to optimise spend have impacted contracting
- Evolution of rig supply
- Tight regionalized supply creates hot spots
- What does it all mean and where do we go from here?
- Rig cost mitigation
Tables and charts
This report includes the following images and tables:
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Long vs. short-term contractsNew-build backlogForecasted global average leading-edge rig day rateTrion cost scenarios based on year rig contracted
What's included
This report contains:
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