The global demand for oil and gas, especially from offshore regions, is set to continue and this will result in a corresponding increase in production needs for the foreseeable future.
Given the backdrop of rising energy prices over recent years, as well as the decline in available resources from onshore areas, there has been a marked shift towards offshore exploration in both shallow and deep-water regions. Rig owners around the world are commissioning more deep water and shallow water vessels to be built. Contracts for drillships, semi submersibles and jack up units have all correspondingly increased. The market has also seen a greater demand for ultra-high specification jack up rigs. A shift in investment to new and emerging offshore regions such as Africa, Asia and Brazil is driving the growth in offshore drilling.
The depletion of oil and gas reserves both onshore and in shallow waters – along with the advancement of seismic and other drilling technologies – are further driving the increased drilling activity in deep-water offshore regions.
The gradual decrease in the number of new easy-to-reach oil and gas fields over recent years has prompted producers to move into deeper offshore locations in search of additional production capacity. With the huge new deep water discoveries in the Asia Pacific region, the offshore drilling market is particularly set to grow immensely here.