The offshore drilling market is still reeling from the COVID-19 pandemic and the decline in oil demand. The total number of jackups, semis, and drillships under contract has plunged by 60 units from 486 in March to 426 through September. During that same period, the global supply of units was also reduced, but only falling by 15 rigs from 758 in March to 743 in September, and that pace of attrition has slowed significantly over the last few months. With those factors, utilization has fallen from 64.2% in March to 57.4% through September. However, the number of rigs working has recovered somewhat over the last month. After dropping by 78 units from 455 in March to a low of 377 in August, it improved to 384 in September.
– Justin Smith, Petrodata by IHS Markit