The offshore oil and gas sector has been on a wild ride the past few years. From late 2014, when oil and gas prices collapsed, through 2020, the market for offshore services was in a deep slump, volatility increased, and pressure on margins was unrelenting. Then came 2021, and with it a powerful surge in demand as well as prices that revived the sector’s fortunes. The good times appear set to last a few more years, as tight oil supplies interact with rising demand to sustain higher prices. Then the cycle will turn again—only this time, there will be no subsequent recovery. The offshore sector, along with the rest of the oil and gas (O&G) industry, will go into terminal decline, and the offshore sector’s ride will grow even wilder.

"Energy transition represents an existential threat to the entire offshore universe in the long term, but the prospect of elevated oil prices until the middle to the end of the decade offers some short-term opportunities."

-2022 Offshore Oil & Gas Report