Rising oil prices have drawn more eyes to the offshore markets. There are signs of green shoots after a period of depressed sentiment that started in late 2014, pushing asset values downwards through 2016. VV’s Fixed Age Values for a 5 year old Jack Up Rig has increased 36% from Jan 2017, when a vessel was worth $69.9 million, to $95.14 million today.
E & P spending should start to increase now that oil prices have shown a sustained period of strength, increasing demand for offshore equipment. Much of the spending will be directed to onshore exploration, but a portion will be directed at easily accessible offshore projects. This should benefit jackup rigs first before a market rebound for deepwater assets (Drillships and Semi-Subs).=