Offshore drilling lifecycle
Most offshore drillers released their first quarter earnings in May. In their conference calls, they provided some key insights on the outlook for the offshore drilling industry.
According to Seadrill (SDRL), competition in the market remains fierce. It stated that the industry will likely remain challenging in the short to medium term.
ENSCO (ESV) expects the activity in the shallow water jack-up segment to recover first. The company thinks that the segment’s recovery is already underway. Although activity in the floater segment rose moderately, it probably won’t be enough to offset the rigs that are scheduled to go off contract in 2017.
Atwood Oceanics (ATW) expects the offshore drilling industry to remain challenging for at least a year. However, it’s more optimistic than ever that the industry will be poised for a comeback starting in 2018.
According to Noble’s (NE) CEO, tenders for both jack-up and floater rigs are rising from emerging markets and from previously active areas that have largely been dormant in the past two years.