Middle East Drilling Demand Growth Scaled Back

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Middle East Drilling Demand Growth Scaled Back
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Despite some scaling back in the Midde East, Deepwater and ultra-deepwater drilling are experiencing significant growth, with major investments and discoveries in areas such as the North Sea and China

Maritime Strategies International MSI has scaled back its Middle East Gulf region jackup drilling demand growth after Saudi Aramco suspended contracts for over 20 jackups. Saudi Aramco's surprise move came in the wake of the country’s decision to pause further expansion of its oil production capacity.

Rig, OSV and Subsea markets are particularly robust, with oil and gas vessel rates now higher than 2014 levels in the majority of sectors/regions. Activity remains particularly strong in the Middle East, Brazil and West Africa. Clarksons has predicted that global offshore oil and gas CAPEX will hit $125 billion in the current year. Last year, $116 billion in offshore oil and gas CAPEX reached FID Final Investment Decision, 49% higher than the 10-year average.

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