The oil industry remains one of the most important on the planet. Plenty of people work as offshore drillers or other positions in the industry.
With the world in flux due to COVID-19, it’s important to look to 2021 to get an idea of how this industry will change and evolve. We’ve got you covered in that regard.
When you study the tips below you’ll be able to learn more about offshore drilling and how the field is evolving in the coming years.
West Africa Will Become a Hotspot
Without question, West Africa will become an offshore drilling hot spot in the year 2021. The industry has already begun capitalizing on the rich resources and geographical convenience of the West African Coast.
Expect to see several more ships docked on the coast for offshore drilling.
West African reserves are holding steady and these countries are poised for increased productivity. It will be interesting to track the economy and job market in these West African countries, we’re also seeing what other countries and companies will become active participants.
Contract Activity is Set to Pick Back Up in the Middle of the Year
Going into 2021, offshore drillers are expected to experience $3 billion in contract cancellations.
However, this activity is set to pick back up and turn around by the middle of the year. This increase in activity will be welcome from an industry that has been hard-hit the past couple of years.
The Industry is Recovering From Record Lows
Once the pandemic hit, it became clear that the industry would soon experience record lows. In fact, the virus experienced a 20-year low will take some time to fully recover from.
Anytime industries experience drastic dips to this level, you can expect new investors to come into play. These investors are buying low so that they can catch the inevitable upswing that the industry will experience.
As the world continues to bounce back from the COVID-19 pandemic, you will soon see new players enter the offshore drilling industry, which will also set the roadmap for the course it takes over the next several years.
Operations Costs Will Be Reduced
With the industry in its current state, you can only expect to see some operational costs in the coming years. These cost cuts are in response to the shifts in the economy. They serve as preventative measures to stop the bleeding and allow companies to remain productive with lower overhead costs.
As a result, you should also expect to see those in the industry continuously find new and different ways to optimize their production to make it more efficient. This will reduce waste and allow companies to keep their costs low while improving their productivity.
Companies will continue to get creative in this regard so that they can begin turning profits again.
People in the Field Must Be Aware of Drone Strikes
Drone strikes are also a matter that companies in the field of offshore drilling will have to contend with. The threat of drone strikes has continued to increase in certain company countries that are oil-rich
Companies that operate within those countries will need to make contingencies and do all that they can to keep their people and infrastructure safe. These strikes are both dangerous to life and debilitating to your business, so it is a current event you will always have to keep track of.
Technology is Going to Keep Evolving the Industry
Artificial intelligence (AI) has become a fixture and mainstay of several industries. The field of offshore drilling is no different.
Several offshore drilling companies are putting AI to use to keep track of drilling data and productivity. This allows them to optimize their productivity and save money in the long run.
Plenty of companies are also taking advantage of productivity software that helps with everything from scheduling to human resources (HR) issues. Expect technology to continuously push the envelope with offshore drilling advancements in 2021 and beyond — particularly since remote working is on the rise and companies are having to get creative.
COVID-19 Regulations Will Be in Full Effect
There have been hundreds of offshore drilling deaths during the pandemic, so expect full COVID-19 regulations to remain in effect throughout 2021.
People working in close quarters in oil rigs are more susceptible to the virus, so contingencies will have to be made. Companies will keep stressing the importance of social distancing, sanitization, wearing N-95 masks, and stocking up on personal protective equipment.
You will also need to clean your rigs more frequently and with more intention throughout the year. If 2020 is any indication, we’re going to keep learning more about the virus, how it spreads, and how it affects people.
We will have to be flexible as we adapt to these developments, and continue to put new practices into play.
The industry will have to strengthen its COVID-19 regulations, while still not losing sight of basic workplace safety and injury prevention.
You can study this article to learn about accident prevention on the job.
Stay Up to Date With Offshore Drilling Information
When you study the field of offshore drilling, you’ll always be a few steps ahead of trends and changes. The energy industry continues evolving, and the pandemic has created new obstacles and challenges that must be addressed.
Consider the points above and make sure to stay tuned.
Keep up with us so that you can stay abreast of the many different changes happening in the field of oil rigs and drilling.