US GOM Drillship Market Picking Up Steam

The U.S. Gulf of Mexico drillship market is picking up steam, according to Westwood Global Energy Group.

As of mid-July, marketed utilization of the 25-rig fleet stood at 96 percent, with 24 units either working or committed to begin contracts in the next few months, Westwood highlighted on its website. Contracted utilization in July 2018 stood at 76 percent.

Westwood has predicted that utilization will remain in the 95-100 percent range, “assuming rig owners do not shoot themselves in the foot by mobilizing a large number of rigs to the region on speculation, something that has occurred a time or two in the past”.

Last month, Westwood outlined that the global offshore rig market appears to have emerged from “one of the worst” downturns in its history.

“Over the coming months and years, demand is expected to continue to increase as a backlog of delayed projects continues to be worked through and aging, under-spec rigs continue to be retired,” Westwood said in a statement posted on its website at the time.

“Whilst, even in the most optimistic scenario, it seems unlikely that the offshore rig market will return to the heights of the previous upturn, there should no-doubt be cautious optimism,” Westwood added.

Formed in January 2015, Westwood delivers independent information, research and consulting services for global energy markets, according to its website.