For quite some time now, many oilfield analysts have reported the beginning of a recovery in offshore rig demand. For quite some time now, many oilfield analysts have reported the beginning of a recovery in offshore rig demand. Recent report headlines, however, have now started to use phrases like “elusive recovery” or something similar. The fact of the matter is that a recovery never really started. Yes, there have been isolated positive developments in some markets for some rig types, but reports of a recovery have most definitely been overstated. As seen in the figure below (courtesy of the June 2017 RigOutlook forecast), the competitive jackup, semisubmersible (semi) and drillship rig fleet totaled 700 rigs comprising 431 jackups, 150 semis, and 119 drillships. While this was down by 6.2 percent from 747 in September 2014 (generally recognized as when the current downturn began), the drop in rig demand during […]