Out to sea
There is still potential for offshore upstream around the world. Our series of articles investigates the challenges and opportunities in depth.
OFFSHORE upstream is now a game of two halves. Production continues apace in many regions, founded on investment made at $100 oil, while offshore licensing rounds have generally been met with lukewarm responses. Despite some bright spots, there is no disguising the dramatic downturn. Baker Hughes’ international rotary rig count shows a sharp decline in active offshore rigs from 334 in November 2014, when oil prices were starting to slide, to 211 in March this year. That collapse accompanies a sharp drop in expenditure, which isn’t going to recover soon. In a recent report, consultancy Douglas Westwood forecast subsea hardware spending will total $94.3bn in 2016-20 – a 19% fall from the 2011-
Also in this section
13 March 2026
Brussels is again weighing a cap on gas prices amid the Hormuz crisis, but the measure could backfire by deterring the LNG cargoes Europe urgently needs
12 March 2026
Emergency oil stocks provide a last line of defence to oil market shocks, so the IEA’s unprecedented 400m bl release represents something of a double-edged sword
12 March 2026
LPG could rapidly expand access to clean cooking across Africa and prevent hundreds of thousands of deaths from indoor air pollution each year, but infrastructure shortages and regulatory barriers are slowing investment and market growth
11 March 2026
Missiles over Dubai and disruption in Hormuz are testing the emirate’s reputation—and shaking the energy hub at the centre of the Gulf economy
