Over the last seven quarters, the floating deepwater rig count in the USGOM continues to remain static between 20 and 22 rigs. Yet, demand for deepwater OSVs is significantly higher than just one year ago. While a summer uptick is expected, this does not explain the rise in demand relative to this time last year. In 2023, there were 21 deepwater floating rigs in the USGOM—the same as today. However, the weekly Deepwater Activity Report, produced by the Bureau of Safety and Environmental Enforcement (BSEE), provides some insight into what is driving vessel demand.

This report provides a count of deepwater prospect activity that has drilling and work over activities taking place. This includes floating rigs, operational platform rigs, and all of the various types of workover activity. An emerging trend that is likely to continue is the level of exploration and development drilling utilizing floating drilling rigs remaining static with incremental activity driven by a further expansion of production in existing fields. This development will utilize platform rigs, production facilities, and work overs to generate increased production from the existing field infrastructure. Today, while there are 21 active floating rigs, there are another 29 deepwater prospects with platform rigs or other work over activities taking place. This time last year, the rig count was the same yet there were only 18 deepwater prospects. While a year over year comparison of just a single month is a limited data set, going back several months from today and with the same analysis points to a growth in activity not focused on floating drilling rigs.

If this trend continues and the industry sees any growth in floating rig activity, the deepwater OSV market will remain robust for the foreseeable future.