Wood Mackenzie, a leading energy research and consultancy firm, has reported a shortage of ultra-deepwater (UDW) rigs and its significant impact on the industry.
According to the report, the supply chain strain has led to an extreme scarcity of UDW rigs, with rates for the highest spec rigs soaring to nearly US$500,000 per day in the most sought-after sectors.
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The forecast for UDW rig utilization globally in 2023 stood at 88%, with a projection to reach 96% in 2024, accompanied by a rate increase to US$419,000 per day for the current year.
While the 2023 forecast proved accurate, the rate hikes surpassed expectations by 10%, with 2024 utilization estimates experiencing a slight decrease.
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However, average global rates are anticipated to climb by 2% to US$430,000 per day.
Wood Mackenzie anticipates the UDW rig market to remain exceptionally tight, with rig owners showing little interest in expanding capacity.
The consultancy firm said efforts are underway to alleviate the shortage, including the potential return of some idle rigs this year, operators securing rigs for extended periods through multi-year contracts, and longer lead times on new contracts due to limited near-term availability.
