Offshore Drilling Seeing Renewed Boom Despite Recent Bearish Sentiment
• Despite recent bearishness, offshore oil and gas markets are booming, with the Clarksons Offshore Index up 27% and projected to hit all-time highs in 2024
• Rig, offshore support vessel (OSV), and subsea rates are particularly strong, exceeding 2014 levels in most sectors/regions
• Deepwater activity is surging, with high-spec jackup and floater day rates over $160,000 and $500,000 respectively
• Stocks of offshore drillers like Transocean, Diamond Offshore, and TechnipFMC have outperformed other oil & gas subsectors over the past year
• Ultra-deepwater production is growing rapidly, expected to account for half of all deepwater output by 2030