Further Gains For Offshore Oil & Gas Vessel Markets in 2022
Full year 2022 data points for the offshore oil and gas vessel markets have been released by Clarksons Research onto Offshore Intelligence Network. Reviewing the data, Steve Gordon, Managing Director of Clarksons Research commented:
- 2022 was a year of positive progress for offshore oil and gas vessel markets, with the Clarksons Offshore dayrate Index (covering Rigs, OSV and Subsea) up 32% to a post-2014 high of 84 (2014: 100, 2017: 45).
- Energy markets were supportive of increased offshore activity with strong oil prices (Brent averaged $99/bbl driven by Russia-Ukraine conflict and post-Covid demand recovery) and a renewed focus on energy security (offshore oil and gas is still 16% of global energy supply but only 3% of offshore production is Russian).
- Normalisation of intervention / maintenance activity after Covid-19 disruption also supported increased vessel demand.
- National Oil Companies (NOCs) in particular accelerated offshore FIDs helping take overall offshore oil and gas CAPEX commitments to $102bn in 2022 (up 15% y-o-y).
- Record MOPU investment (14 awards of $16bn (including 10 FPSO) plus 9 redeployments (including 8 FPSO)).
- Impacts of multi-year fleet consolidation and contraction (both 2014-19 and immediate Covid-19 impacts) continued.
- Trends across the major offshore oil and gas fleet segments:
- Rigs: Overall offshore Rig markets tightened materially in 2022 as 11% growth in demand (JU: +10%, FL: +15%) supported a 7 point increase in utilisation (Jack Up end 2022: 87% / Floater end 2022: 84%). For the moment our projections suggest rig utilisation will reach 93% in the coming years (see Offshore Intelligence Network for more detail).
- Jack-Up: Global jack-up demand reached 392 units by end 2022 (2014: 458, 2017: 300), but demand in the Middle East surged by 25% to an all-time high of 144 rigs. Rates rose strongly, with highlights being a 79% increase for the Middle East jack-up market across 2022.
- Floater: Global floater demand reached 133 units by end 2022 (2014: 300, 2020: 108). Rates rose strongly, with highlights being 48% increase in the US UDW floater market.
- OSV: OSVs saw a solid increase in demand (up 7%), with utilisation reaching 70% at end year (+4 points y-o-y). Our index of OSV day rates rose by 29% to 138 points (though still 18% below the 2014 peak). In the significant large PSV term market in the North Sea, rates ended the year 74% up at £16,000/day. Projections for Supply / Demand and utilisation are available on Offshore Intelligence Network.
- Subsea: Subsea support markets also rose strongly through Q3 before softening seasonally; rate assessments for a North Sea 250t MSV (incl. 2 WROVs) still rose 46% y-o-y.
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