Capt . Rado in his keynote speech said that Middle East produces more than one third of the world ’ s oil and Drydocks World is strategically located to service this market segment . Drydocks World has completed over 200 rig repair , reactivation and life extension projects , providing a one-stop solution in the region .
In the short term oil demand will increase , however the long term outlook predicts a decrease in oil demand . Organisations need to adapt to changing market conditions , becoming more agile and digitally driven . Drydocks World is focusing on providing high quality solutions , developing digital innovation and multiskilled employees , while maintaining safety as our top priority .
The world will require more energy for growing populations in the future . Improvements in productivity and production will be beneficial to both service providers and producers . In order to meet the rising demand for energy , it is crucial for all stakeholders in the oil and gas industry to look towards innovation as a tool to overcome energy challenges in the future '.
Jo Friedmann , Senior Analyst , Energy Service Research , Rystad Energy said that the offshore rig market is currently on its way to recovery . Increased sanctioning levels of greenfield projects alongside a substantial amount of brownfield work to maintain legacy production has translated to an increase in rig activity . With E & P companies enjoying free cash flows at alltime high levels , some are now looking to replace reserves and
boost exploration efforts .
From a global point of view , activity inthe jackupmarket has been more stable during the downturn compared to the floater market . We have seen a stable-to-upward trend in hydrocarbon production in the Middle East shallow water basins , supported by a relatively stable regional offshore rig count . Compared to other regions where production from shallow water basins has been declining .
When looking at the jackup market on a regional basis , rig counts were down more than 50 % in several key jackup marketssuch as Mexico , South East Asia and the North Sea starting in 2014 and lasting through 2016 . Where rig activity has been declining there has also been an observed decline in hydrocarbon production as a result of brownfield work being put on hold . In order to alleviate production declines , E & Ps and national oil companies are now starting to hire offshore rigs again . Over the past 12 months the majority of the comeback in activity has beenin Southeast Asia , China and Mexico .
While we expect an increase in activity as the E & Ps and national oil companies in these regions get back to work , the jackup market is still oversupplied anda more aggressive attitude towards scrapping is needed to bring rig supply / demand back into balance . Additionally , the influx of new rig supply from Asian yards entering the market will challenge utilization . As we move towards 2025 , production from shallow water markets is expected to decline which could further jeopardize rig supply fundamentals .