McKinsey: Offshore drilling has reached, neared bottom (OGJ)

Oil & Gas Journal

Houston.- London-based energy data and analytics firm McKinsey Energy Insights (MEI) has released its latest Offshore Drilling Market Outlook to 2030, saying activity appears to have reached or neared the bottom. Most of the drilling rig overhang from before 2015 has been removed, MEI said.

“Recent events have occurred in the market that suggest increased demand for drilling services going forward,” said MEI, which forecast 6% growth in operator capital spending from 2016-18.

MEI analysts cited deregulation in Brazil and Mexico as reasons for higher operator spending.

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