The five offshore drilling rig markets

Document Type

Article

Publication Date

1-1-2013

Abstract

The offshore drilling industry is composed of five markets engaged in the trade of a unique service or good. Mobile offshore drilling units are owned and operated in the contract drilling services market, supplied by the newbuild and secondhand markets, maintained and enhanced in the upgrade market, and complete their lifecycle in the scrap market. The purpose of this chapter is to describe the players, prices, activity and cash flows in each of the five offshore rig markets circa 2010–2011. Contract drilling and newbuilding are large transparent markets and activity is closely followed throughout the industry. From 2005 to 2012, contract drilling and newbuilding generated between $25–$50 billion and $10–$20 billion in transactions per year, respectively. Maintenance and upgrade activities are performed by a number of shipyards throughout the world, but because of the sporadic nature of the activities and limited record keeping, the market is difficult to track. The secondhand and upgrade markets are estimated to be worth between $2–$10 billion and $1–$5 billion annually. The scrap market is the smallest of the five markets and is poorly documented and worth less than $50 million during most years.

Publication Source (Journal or Book title)

Lecture Notes in Energy

First Page

29

Last Page

50

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