Uche Cecil Izuora
There are growing concerns about the future of oil and gas offshore Capital Expenditure (CAPEX) as Clarkson Research projects expenditure to fall to $85 billion this year, the lowest since 2020.
Clarkson Research Services Ltd. expects $85 billion in global capex on offshore oil and gas projects in 2026, down 24 per cent from $111.9 billion in 2025 final investment decisions.
About $34 billion have already been committed in 2026, according to Clarkson analysis released in advance of the 2026 Offshore Technology Conference in Houston.
The forecast total would be the smallest offshore capex since 2020.
The subsea engineering, procurement, and construction backlog stands at a record high $52 billion, according to Clarkson, with North Sea subsea charter rates up 12 per cent year-to-date (ytd) as availability tightens.
The maritime research company sees the ongoing Iran war as having mixed impacts on the markets it covers, with operational difficulties in the Persian Gulf partially offset by increased activity in other parts of the world and a renewed focus on energy security in general.
After a softer 2025, the Clarkson’s Offshore Rate Index (tracking day rates across drilling, support vessels, and subsea) is up 3 per cent so far in 2026, to reach 111 points (11 per cent above its 2014 high and double its 2018 low).
Global jack-up demand sits at 387 units (+13 units year-on-year) with utilization at 89%; premium jack-up rates are up 11 per cent ytd, reaching about $103,000/day. Floater demand sits at 130 units (80 per month utilization); ultra-deepwater rates are up 5 per cent so far this year (at $373,000/day) after softening 13 per cent in 2025.
Offshore support vessel markets have picked up, with West Africa platform support vessel rates up 5% ytd and North Sea rates up 6 per cent.