Page 28: of Offshore Engineer Magazine (Apr/May 2014)

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Rig Market Review exploration and development drilling after more than a decade of rising prices begins to bear fruit – and it should be a and a booming newbuild market, the bumper crop. wind may be about to change. Predicting

In the offshore arena, rising prices the exact timing of that change is very have also driven a surge of exploration dif? cult but In? eld Systems expects that, and production activity in deeper waters. from 2016, newbuild orders will slow.

In 2000, global undeveloped offshore There are, however, good reasons oil reserves (2P) stood at 116 billion to believe that the downturn, when it bbl, with just 21% of these resources in comes, may not be as severe as that seen over 500m of water. By the end of 2013, in the previous newbuild cycle. This is undeveloped reserves had grown to 129 largely because the nature of the industry billion bbl, with 54% of that total now has profoundly changed. Activity has in deepwater and ultra-deep water (see broken ground in deep waters and harsh 1

Located o