Drilling Rig Suppliers Say Oil Recovery Will Be Slower Than Expected
- Rig dayrates won't climb until 2019-2020, Thigpen says
- Schlumberger sees 1Q revenue falling 16% from previous quarter
Unused oil rigs stand in the Port of Cromarty Firth in Cromarty, U.K., on Tuesday, Feb. 16, 2016. The pace of drilling in the North Sea, the center of U.K. oil production for the past 40 years, has sunk to a record as crashing energy prices force explorers to abandon costly projects.
Photographer: Matthew Lloyd/BloombergLeaders of the world’s largest suppliers of offshore drilling rigs and the services that go with them see the oil market recovery taking even longer than expected last year.
Transocean Ltd. Chief Executive Officer Jeremy Thigpen expects it will have to wait at least another three years before his company can begin charging higher rates for offshore rigs. Schlumberger Ltd. chief Paal Kibsgaard sees the oil industry, stuck in the deepest financial crisis ever, in no rush to get rigs back online even after prices recover.