HOUSTON—Attrition is aiding recovery of the oil and gas industry’s oversupplied offshore rig market, but retiring rigs will not be enough for a turnaround as more newbuilds line up to join fleets, analysts say.

“Demand is going to have to do its part as well,” said Terry Childs, head of Westwood Global Energy Group’s RigLogix.

Good news is market conditions are improving and more demand could be around the corner with rig tenders as oil and gas companies step up drilling plans and final investment decisions (FID) move offshore projects forward.

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