Is Offshore Oil, Gas Drilling Making a Comeback?

Analysts point to data indicating improvement for offshore oil and gas drilling, particularly floating rigs, with room to grow.

offshore-oil-gas-drilling

The sun rises Sept. 30, 2019, over Transocean’s Deepwater Mykonos docked at Puerto de Las Palmas. The drillship is currently on contract with Petrobras offshore Brazil. (Source: Ana Iacob Photography/Shutterstock.com)

[Editor's note: A version of this story appears in the May 2022 issue of Oil and Gas Investor magazine.]

Buried among talk of an energy transition, oil market volatility, U.S. shale supply chain concerns and inflation woes, a new theme appears to be emerging.

Analysts say offshore oil and gas drilling activity is reawakening.

“Quite frankly, offshore has been dead for a decade, [but] offshore is coming back,” said James West, senior managing director and partner at Evercore ISI. “We’ve seen deepwater day rates go from $150,000 at the bottom per day to almost $400,000 in recent months in the Gulf of Mexico.”

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Velda Addison

Velda Addison is the senior editor of digital media for Hart Energy’s editorial team. She covers energy with a focus on renewables.