Offshore
Offshore downturn likely worse than the mid-1980s: Pareto
A report out this week from Pareto Securities suggests the offshore downturn will likely be worse than the one suffered in the mid-1980s with the number of contracted floaters likely dropping towards 150 units.
More rigs will have to be cold stacked or scrapped, Pareto said.
More than 20 rigs were standby or laid-up whilst under contract in December, the company noted.
“Whilst this figure will come down during January as some contracts have been terminated while others have ended, it is a clear sign that the fleet rightsizing is not yet completed and that the current market situation where most rigs coming off charter are being idled/stacked will continue,” Pareto stated.
If it ends like the 80’s you will see 5 year old rigs selling for scrap!