Economic Climate Slows European Offshore Industry

Source:

"Rig demand in the region has taken a dive and is not expected to improve over the rest of the year."

As is the case in other offshore markets, the Northwest Europe and Mediterranean offshore oil and gas industry is feeling the effects of a slumping world economy. The price of oil has been on a roller coaster ride, taking rig demand and interest in licensing rounds with it.

However, field development work continues at a relatively steady pace, while the eastern Mediterranean Sea is emerging as a more active hydrocarbon region.

Rig demand in the region has taken a dive and is not expected to improve over the rest of the year, according to ODS-Petrodata's World Rig Forecast - Short Term Trends. The demand for jackups in both areas will lag behind supply, creating a further surplus of rigs in the world. The semisubmersible market is also forecast to be over-supplied in the near term.

There have been 15 discoveries so far this year in Northwest Europe and the Mediterranean Sea. At this point in 2008, 18 discoveries had been made, with a total of 44 made during the year, which was the highest total seen in the last few years.

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