Worldwide offshore rig count and utilization rate

The COVID-19 pandemic and the decline in oil demand has clearly had a significant negative impact on the offshore drilling market. The total number of jackups, semis, and drillships under contract has plummeted by 46 units from 487 in March to 440 through July. However, during that same period, the global supply of units was also reduced, falling by 14 rigs from 757 in March to 743 in July. Although most of that attrition took place near the beginning. As such, utilization fell from 64.3% in March to 59.2% through July. Meanwhile, the number of rigs working has plunged even further, dropping by 67 units over the last few months, from 455 in March to 388 in July.