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Energy transition and security concerns underpin offshore upliftEnergy transition and security concerns underpin offshore uplift

This year’s upturn in the offshore market looks ‘more entrenched and broader-based’ than the last short recovery of 2018/19 prior to the onset of the pandemic.

Paul Bartlett, Correspondent

August 30, 2022

1 Min Read
Edison Chouest
Photo: Edison Chouest Offshore

In the previous recovery the Clarkson’s Offshore Index, which covers day rates for rigs, offshore support, and subsea vessels, at 47.7 points, was only just above its ten-year low of 44 points (2017). Today, the index has recovered to 80, a seven-year high.

Clarkson Research noted in its most recent market report that attendees will have plenty of reasons to be cheerful as they attend Offshore Northern Seas (ONS) in Stavanger this week. Vessel utilisation rates are substantially higher than four years ago; capital expenditure is likely to hit $86bn this year compared with $65bn in 2018; and anchor handlers in the North Sea are earning more than five times the rate then - £105,000 per day compared with just £17,000.

The firm said that energy security is sharply up the agenda as a result of the Ukraine conflict and the energy transition is also likely to be widely discussed at ONS this week. The 53.7 GW of active offshore wind now contributes 0.3% of global energy supplies but ambitious targets across Europe, parts of Asia, and now the US, are likely to see this number rise significantly in the years ahead.

Meanwhile, pressure on oil service companies to ‘go green’ is becoming more urgent and efforts are being redoubled on carbon capture, and to reduce platform emissions, the analyst said.  

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About the Author

Paul Bartlett

Correspondent

UK-based Paul Bartlett is a maritime journalist and consultant with over four decades of experience in international shipping, including ship leasing, project finance and financial due diligence procedures.

Paul is a former Editor of Seatrade magazine, which later became Seatrade Maritime Review, and has contributed to a range of Seatrade publications over the years including Seatrade’s Green Guide, a publication investigating early developments in maritime sustainability initiatives, and Middle East Workboats and Offshore Marine, focusing on the vibrant market for such vessels across that region.

In 2002, Paul set up PB Marine Consulting Ltd and has worked on a variety of consultancy projects during the last two decades. He has also contributed regular articles on the maritime sector for a range of shipping publications and online services in Europe, Asia, and the US.

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