Data briefs July 2025: Offshore O&G industry insights reveal market outlook
Regional contractors to explore new horizons
Over the last decade, the offshore jackup backlog distribution has shown stability between international and regional contractors. Prior to the COVID-19 pandemic, international contractors held an average of nearly 51% of the global backlog, led by companies like Valaris, Shelf Drilling and Borr Drilling. However, in 2020, amid the pandemic downturn, regional contractors increased their share from 38% in 2019 to 44%, driven by reduced rig demand, supply chain disruptions and health concerns. This shift underscored the need for cost optimization and flexibility in rig chartering, which regional contractors could offer more easily. In 2021, as the market tightened and rig demand increased, international contractors reclaimed 61% of the global backlog. Since then, regional players have gained ground. Approaching 2025, the current dip in demand is pushing regional contractors to seek international opportunities, likely leading them to dominate their markets and continue to expand internationally with support from local governments or regional investments to support competitive rates.—Petrodata Rigs by S&P Global
UK subsurface still holds untapped potential
In a high case, the UK Continental Shelf (UKCS) could produce 4.3 Bboe. However, in a substantially improved market environment, including significant changes to tax, licensing and regulatory approvals, and favorable commodity prices, the UK could unlock up to 7.5 Bboe. A major shift in investor sentiment would also be required to achieve this, built on a stable and globally competitive fiscal policy; supportive investment environment; long-term commitment to ongoing licensing; faster approvals process for new developments and licence awards; and pragmatic decarbonization policy that supports project viability and encourages investment.—Westwood Global Energy Group
