Report: Offshore spending driving global upstream capex

June 4, 2024
Total upstream offshore capex expected to reach $274 billion by 2028, says Evercore ISI.

Offshore staff

NEW YORK CITY – The global upstream capex is expected to remain robust in 2024, primarily driven by offshore spending, according to Evercore ISI’s latest Offshore Oracle report. 

The report, which cites S&P Global data, says that the global upstream capex is anticipated to grow by 15.6% this year to reach $213.2 billion. 

Offshore growth is broad-based, says Evercore, and the largest growth is expected in Africa (+34.3% to $27.3 billion), Latin America (+225% to $51.9 billion), and Russia and the Caspian (+21.1% to $3.3 billion). 

The offshore growth trend is expected to continue through the decade, with total upstream offshore capex reaching $274 billion by 2028, implying a CAGR of 6.5%. 

Shallow-water E&P capex is likely to peak in 2025 at ~$140 billion, while deepwater E&P capex growth will continue with momentum reaching $142 billion in 2028 from to $87.4 billion in 2023 (the deepwater segment is expected to experience a higher growth rate vs. shallow-water). 

Meanwhile ultra-deepwater rig rates are expected to keep rising, the firm says. While contracting activity for floaters remains slow compared to last year, “we note [that] average floater rig days are in line with 2023 at ~312 days.” Dayrates for ultra-deepwater rigs “are looking robust,” says Evercore, averaging in the high $400,000-range year-to-date.

As reported by Evercore, four rig contracts announced this year so far have exceeded $500,000/day, including the Deepwater Asgard (Transocean, $505,000/day), the Deepwater Atlas (Transocean, $505,000/day), the West Capella (Seadrill, $545,000/day), and the Deepsea Aberdeen (Odfjell Drilling, $504,000/day).



ID 13064372 © Andreas Jancso |
ID 43762359 © Anupong Nantha |
Photo 306998633 © Maksim Korobsky |
ID106637088 © Flyingrussian |

Request More Information

By clicking above, I acknowledge and agree to Endeavor Business Media’s Terms of Service and to Endeavor Business Media's use of my contact information to communicate with me about offerings by Endeavor, its brands, affiliates and/or third-party partners, consistent with Endeavor's Privacy Policy. In addition, I understand that my personal information will be shared with any sponsor(s) of the resource, so they can contact me directly about their products or services. Please refer to the privacy policies of such sponsor(s) for more details on how your information will be used by them. You may unsubscribe at any time.