IHS: Rising operating costs challenge outlook for offshore rig market

The strength of offshore rig dayrates in recent years has attracted significant investment and a spate of orders for newbuilds – particularly for premium jackups, Tom Kellock, Senior Manager – Consulting at IHS, explained at IADC World Drilling 2014 in Vienna on 18 June. At the same time, operators, drilling contractors and analysts alike are concerned about rising operating costs, of which personnel accounts for more than 50%. Watch this exclusive video with Mr Kellock to learn about his outlook for the global offshore rig market.