According to Bassoe Offshore, "Shipyards are facing “brutal” $15.2billion (£11.6bn) losses over new-build offshore drilling rigs that no one wants".
New research from the firm shows a “glut” of new rigs still in yards, ordered during a “newbuild boom” which kicked off 10 years ago.
Shipyards “have been left holding assets that nobody wants”, Bassoe said, with 69 newbuilds currently idle in yards, with many firms having defaulted on their orders and simply walked away."
This is a major sign of the times as we continue to move further and further away from extractive industry, investing instead in greener and cleaner technologies - a far cry from when I was at school (more than 20 years ago!).
Back then, "I want to work on the rigs when I'm older" was a common saying among friends. That was ultimately where the money was at and almost everyone knew someone who worked offshore - be it their Father, Brother, Sister or Uncle - a career within oil & gas was the aspiration of many.
Nowadays, things are changing. Kids want to pursue a career with purpose, and one that has a positive impact on the climate. Many already working within oil & gas are looking to make the transition to a career within renewable energy and cleantech else they risk being out of a job before they know it.
As a colleague mentioned earlier this week, the good thing is, the technologies and skills of the oil and gas industry will play a major part in unlocking the solutions we need for a clean energy future.
At Hyperion, we are proud to work with leading clean technology and E-Mobility companies who are driving the clean energy and mobility transition forward.
Here is a link to some of our recent case studies where we've hired exceptional senior level talent for some of the most innovative, high-growth cleantech companies.
Until we witness a mass scrapping of old tonnage to make room for the new, these dormant rigs will likely continue to sit idly awaiting maiden charters that may never come