You could say offshore rig owners dug themselves a deeper hole, but that could be misleading.
We’ll sum this up quickly.
About six months ago, things were looking pretty good for the offshore rig market (at least on the surface). Momentum (and positive sentiment) was building on the back of more tendering activity and indications that oil companies would be spending more on offshore drilling projects.
New contracts were generally short-term, and dayrates were seeing a barely noticeable upward trend, but things seemed to be moving in the right direction.
Looking back over the year, it’s evident that this hasn’t been the case. And the recent oil price collapse and a general negative sentiment in the global economy have knocked the market back into 2016 again.
What’s most worrying is the major listed drilling contractors actually lost backlog since the start of the year. That means they’ll be starting off in a worse position than they were in at the end of 2017.