The offshore drilling market is on the rise again

This year, the offshore rigs were in high demand. Meanwhile, the number of these rigs in the US decreased. As per Baker Hughes data, 622 rigs are now functioning in the US. At the same time, in March 2020, at the beginning of the epidemic, there were 683 of them, and six weeks ago their number was the same. Evercore’s SMD James West identifies several grounds for the growing interest in offshore drilling:

• US industry leaders like Chevron, ConocoPhillips, and Exxon Mobil have already acquired the necessary equipment. Their private competitors, in contrast, don't acquire anything due to a lack of funds.
• Major companies are already moving their main works offshore and overseas. This happens because of restrictions on shale extraction in the US and main areas being already taken.
• National oil companies, including the ones from Abu Dhabi, Kuwait, and Saudi Arabia, are currently increasing offshore production. They strive to take away market share from big companies, which now are busy with dividends and share buybacks rather than production issues.