Could “Stealth Scrapping” Balance The Deepwater Rig Market Sooner Than Public Retirements Suggest?

If deepwater rig demand were to begin its ascent today, it would be met with a glut of rigs that would render the impact on dayrates, and indeed contractor bottom lines, relatively impotent.

If more rigs aren’t removed from the structural oversupply before demand moves higher, drilling contractors are at risk of entering not only a price-less recovery, but a potentially profit-less one.

Not enough rigs are being scrapped and we provide some analysis on how many, by who and when in this update. But there’s also another trend playing out behind the scenes – one that may be reducing supply to more appropriate levels without all the fanfare…

There’s a lot more to this story…

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