Offshore service sector: what to look for in 2017

As operators and the supply chain adapt to the more challenging conditions, Wood Mackenzie is positioned to support the industry with enhanced market coverage and a developing suite of upstream supply chain solutions. The team takes a look at what 2017 will hold: Further consolidation: M&A, collaboration and joint venture projects are increasingly common across the supply chain – and we expect more of the same in 2017. More FIDs: But it may be towards the end of the year before we see any major increase in associated contract awards. Drilling still in the doldrums: Exploration drilling will remain on a downwards trajectory throughout 2017, whereas development drilling should stay flat. Global vessel market demand driven by deepwater: Newbuild demand will focus on higher spec models, and deepwater will still be the main market driver. Uptick in decommissioning: The number of platforms reaching removal age will accelerate, particularly in the North Sea through to 2020.