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Offshore costs outlook H1 2026: Short-lived softness, robust fundamentals
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Despite near-term headwinds, this downcycle will be short lived and shallower than historically. Well demand fundamentals remain robust through to the end of the decade and although subsea well demand will contract by a further 6% in 2026, this will recover in 2027. Demand for facilities and subsea equipment will rise modestly in 2026, but inflation will remain in low single digits. In contrast, rigs have already entered a deflationary phase, and we expect dayrates to soften further during the year. Meanwhile, the marine installation segment continues its upward trend, with costs rising by 7% in 2026.
Table of contents
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Executive summary
- Introducing the Wood Mackenzie Offshore Capital Cost Index
- Marine installation costs will continue to rise
- Softening inflation for the facilities sector
Tables and charts
This report includes the following images and tables:
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Wood Mackenzie Offshore Capital Cost IndexBenign ultradeepwater rig rates versus firm backlog awardsOilfield services cost inflation for key drilling and completion categoriesTier 1 marine contractor EBIDA margin trend
What's included
This report contains:
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