Offshore market dayrates hit 8-year high in 2022

In its review of its full-year data for 2022, Clarksons Research said its Clarksons Offshore Dayrate Index was up 32% in 2022 to 84, compare to 100 in 2014 and 45 in 2017.

“Energy markets were supportive of increased offshore activity with strong oil prices (Brent averaged $99/bbl driven by Russia-Ukraine conflict and post-Covid demand recovery) and a renewed focus on energy security (offshore oil and gas is still 16% of global energy supply but only 3% of offshore production is Russian),” said Steve Gordon, Managing Director of Clarksons Research.

Clarksons said the improved market was the result of a prolonged period of consolidation, normalisation of activities after the pandemic, accelerated financial investment decisions from national oil companies, and record investment in mobile offshore production units.

“The helpful impacts of multi-year fleet consolidation and contraction, both 2014-19 and immediate Covid-19 impacts, continued. However, there was less demolition and more S&P activity (with increasing asset prices) in 2022, plus reactivation from lay-up and delivery of legacy resales as markets improved. There is more “talk” of newbuild projects for rigs and OSVs (charterer projects / low emissions) but with current cashflow, newbuild pricing, attitude of financiers, residual value concerns and yard availability this may come through gradually,” said Gordon.

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OSV demand rose 7% in 2022, raising utilisation by 4 points on-year to 70%.

“Our index of OSV day rates rose by 29% to 138 points (still 18% below the 2014 peak). In the significant large PSV term market in the North Sea, rates ended the year 74% up at £16,000/day,” said Gordon.

Rig markets also improved as an 11% growth in demand drove a 7 point increase in utilisation. By sector, jack-ups saw a 10% in crease in demand and 87% utilisation while floaters saw a 15% increase in demand and 84% utilisation.

Clarksons forecast rig utilisation will reach 93% in the coming years, with further information available on its Offshore Intelligence Network.