Supply & Demand Dynamics
The demand for Liftboat's continues to be driven by the world's increased energy demands. According to BP Energy Outlook energy demands will continue to grow at a pace of about 1.2% per annum until 2040 with oil and gas remaining the dominant source (circa 55%). Further demand for Liftboat's is created from the increased uptake in renewable sources - offshore wind farms - with renewables expected to be the fastest-growing source of energy over the next 20 years.
Demand for Liftboats and/or Jackup Barges within the oil and gas industry is closely linked to oil price and the investments of oil and gas companies. Despite growing investment in the offshore wind energy sector demand remains weakened following the global pandemic and the low oil prices. Following the events of H1 2020, many Liftboat owners reported downward trends in rates and utilization.
The Middle East, despite downward pressure on rates, continues to support stronger utilization than other regions somewhat protected by the large National Oil Company presence. In recent years the Middle East market has become a major source of demand for owners, becoming progressively more competitive at the same time. Markets in South East Asia and Africa are much less penetrated than the Gulf of Mexico, Northern Europe, and the Middle East.
*Average global penetration SCM Daleel estimates
As of Jan 2021, globally there are circa 221 Liftboats operating (and circa 10 with unknown / under construction status). More than 65% of the Liftboats in operation are used in oil and gas only, 35% are used in both oil and gas and the wind industry, and the remainder (circa 5% ) used only by the wind industry.
|Gulf of Mexico
*based on publicly available information and SCM Daleel estimates. There may be more vessels, but information on them is not in the public domain.
Utilization levels remain strong and increasing in the Middle East and China / Southeast Asia, whereas US GoM and West Africa continue exhibiting low utilization levels. Recenyly, some of the jackup barges from UAE, JB 118 and QMS Cladiator, were mobilized to China for offshore wind projects.
- Middle East -75%- 80%, up from 2020 levels
- China / Southeast Asia – close to 80%-85%
- Gulf of Mexico – below 45%-50%