Offshore Drillers’ View on the Industry’s Outlook



1Q17 results

Most offshore drillers (IYE) released their first quarter earnings in May. In their conference calls, they provided some key insights on the outlook for the offshore drilling industry.

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According to Seadrill (SDRL), tendering activity, especially in the North Sea, Southeast Asia, and the Middle East, continues to increase. Competition in the market remains fierce for available work. It stated that the industry will likely remain challenging in the short to medium term. However, Seadrill still has confidence in the industry’s long-term fundamentals.


ENSCO (ESV) thinks that recovery in the offshore drilling industry will be protracted, phased, and challenging. It expects the activity in the shallow water jack-up segment to recover first. It thinks that the segment’s recovery is already underway. Although activity in the floater segment increased moderately, it probably won’t be enough to offset the rigs that are scheduled go off contract during 2017.

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Atwood Oceanics

Atwood Oceanics (ATW) expects the offshore drilling industry to remain challenging for at least the next 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. Contracts are being awarded more often, especially in the jack-up sector.


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