Insight
Offshore costs outlook H2 2026: Moderate offshore cost inflation expected through 2027 despite recent commodity-driven shock
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The Middle East conflict has triggered a commodity-driven inflation spike that is expected to moderate over time. Recent market softness has given way to stronger demand, suggesting a shorter-lived downturn and supporting our forecast of moderate offshore cost inflation through 2027.
Table of contents
- Executive Summary
- Wood Mackenzie Offshore Capital Cost Index: Middle East conflict introduces some inflation
- Floating rig market tightening sets the stage for sustained day rate inflation
- Drilling and completions (D&C) price shock
- Subsea costs hold steady
- 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 IndexFloating rig rate forecastOilfield services cost inflation for key drilling and completion categoriesSubsea cost indexTier 1 marine contractor EBIDA margin trend
What's included
This report contains:
