by John Konrad (gCaptain) This afternoon at the Marine Money Week conference in New York, Mike McCormick, principal at Rystad Energy, offered valuable insights on the trends shaping the offshore oil and gas exploration industry. One trend he highlighted was the rising demand for high-spec drillships and floaters.
Noting the increase in the jack-up rig markets, McCormick drew attention to the healthier growth trends in the offshore oil and gas industry. He stated, “There’s a very healthy increase in demand relative to the supply,” highlighting the market’s promising potential. The jack-up rig market saw a strong rise last year, and while the floater market was initially slower, it is currently on an upward trajectory that is expected to continue over the next five years, especially for the more technologically advanced floaters.
McCormick underlined the significance of high-spec, tier-one drillships, which he defined as the “preferred asset class” in challenging exploration conditions. These technologically advanced units are particularly sought after in regions such as Brazil, Guyana, and the US Gulf of Mexico. The other preferred asset class includes ultra-harsh weather capable floaters, typically semi-submersibles used in places like Norway. These units have seen a quick recovery driven by the North Sea.
Despite the growing demand, McCormick pointed out an imbalance effect on less desirable assets, often grouped under “other floaters.” He highlighted the near absence of readily available supply in the high-spec floaters while the “others” have languished.
Addressing this challenge, McCormick noted the industry could resort to reactivating high-spec drillships and floaters, a process that is not only costly but also time-consuming. Alternatively, the industry might need to use lower-spec floaters with potentially lower efficiency levels.
“There’s almost no supply left that is active and ready to go to work in the preferred asset classes,” said McCormick. “So if we want to bring out more high-spec drillships we’re going to do reactivations.”
Mike McCormick, Principal at Rystad Energy speaking at Marine Money Week in New York
McCormick shed light on the recovery of the ultra-deepwater market as a whole, following the downturn in the commodity market in 2014-15. “We’re already past $400,000 per day We’re close to touching $500,000 It’s now pretty much a matter of when, not if, that happens,” he said, emphasizing the heated state of these markets at the moment.
In summary, McCormick’s observations provide a clear picture of the current landscape and emerging trends in offshore oil and gas exploration. His commentary underscores the increasing demand for high-spec drillships and harsh weather capable floaters, and the subsequent challenges that the industry needs to tackle, especially in terms of supply and reactivation costs.
King Charles III's Crown Estate, which owns Britain's seabed, has given the go-ahead to expand high-density wind farms on current seabed leases, seeking a rapid and space-efficient way to raise capacity and support the country's energy transition.
Tech giant Google has signed a power purchase agreement (PPA) with Shell to extend the operational life of the Netherlands’ first offshore wind farm. The historic agreement marks the first...
COPENHAGEN, May 7 (Reuters) – Orsted will no longer build a major offshore wind farm in Britain, it said on Wednesday, citing a deteriorating global business environment for renewables and dealing a blow...
May 7, 2025
Total Views: 892
Get The Industry’s Go-To News
Subscribe to gCaptain Daily and stay informed with the latest global maritime and offshore news
— just like 109,149 professionals
Secure Your Spot
on the gCaptain Crew
Stay informed with the latest maritime and offshore news, delivered daily straight to your inbox
— trusted by our 109,149 members
Your Gateway to the Maritime World!
Essential news coupled with the finest maritime content sourced from across the globe.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.