Is Your Rig Prepared for What's Coming? (Part 1)

However, nowadays, the recovery of offshore drilling is well underway and has been for a good few months now. This is mostly because drilling in this way is far more cost-effective than drilling in the Permian - something that oil and gas experts would never have predicted half a decade ago when the Permian rose to fame as the holy grail of drilling.

Since 2014, offshore capital spending has been cut in half, but this year we can expect to see an increase in spending by around 3% and, next year, this will increase again by 10%. This equates to a huge double-digit drop in spending in US land.

While many companies are turning back to their offshore roots, it’s not a quick solution. Shifting from land-based drilling to offshore drilling isn’t a quick process so, if it came down to it, would you be ready? What would you need to get in place to ensure a quick and painless change over?

What Does the Return to Offshore Mean?

While we’re definitely in the throes of an oil and gas overhaul and offshore drilling is certainly in the spotlight once again, it’s just a start and we can’t claim that it’s a fully-fledged boom… yet. There are still a slew of older, unused offshore rigs that are stopping contractors from pushing up the rents on their sites.

However, the recovery of the offshore movement is a sign of returning optimism for the industry, the long-term future of which has been hanging in the balance since the drastic price cuts forced drillers to move their businesses to cheaper land. This is why the shale revolution became such a hit. Oil flowed so much faster from the newly fracked wells, whereas the offshore wells were taking years to produce the same amount of fuel.

But now we’re starting to see the downfall of fracked wells. They have shorter productive lives which means that the cost of running them is beginning to seem like a major expense compared to the lower prices of offshore rigs. The shale space is also incredibly crowded thanks to its moment in the limelight, so it’s a no-brainer that companies are turning back to offshore for cheaper alternatives.

Preparing to Go Offshore

Offshore drilling rigs are making a comeback because oil prices are on the rise once again - are you prepared for this? Is your rig ready to go back online?

To make the transfer run as smoothly as possible, you’ll need to bring an expert on board who can navigate the different systems and solutions your rig will need. Not only will you need a solution that minimizes downtime as much as possible, but both types of rigs will also need temporary power, heating, and cooling during the switchback.

The offshore revolution is back, and it’s time to make sure your rig is ready.

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