With utilization levels at just over 50% for all rig types and over 130 newbuild rigs stranded or under construction, the need for an increase in rig scrapping (recycling) seems obvious. But it’s not that simple.
Owners such as Transocean, Diamond, and Ensco have made significant contributions to reducing oversupply in recent years. Combined, they have sent (or have committed to send) nearly 70 rigs to recycling yards since 2014. Overall, almost 100 rigs have been announced for recycling during this time, and recycling plans for another 10–15 more have been initiated.