Aug 24: Even though global peers are seeing the possibility of an upturn, Indian oil & gas related shipping companies still see a gloomy picture ahead.
8According to them, there have been no signs of recovery in offshore E&P spending in Q2, 2017
 They see the following trends:
8Drilling demand has been declining continuously since the peak in 2014
8With the Brent oil price showing signs of stabilization at lower levels, offshore E&P spending which had come off significantly since 2014 shows no signs of recovery yet. Q2CY2017 actual deliveries of new offshore E&P vessels have been far lower than scheduled. Due to bleak employment scenario owners have refrained from taking delivery. A lot of deliveries due in 2016 were pushed forward to 2017 and have not yet been delivered. Going forward slippage is expected to remain high.
8Asset utilization levels have come off significantly. For premium Jack ups, lack of contract renewals has resulted in utilization levels coming down from around 90% at the start of 2014 to about 60% as on date.
8In case of PSVs and AHTSVs more than half the fleet is either idle/stacked or working in spot market at a very low utilization.
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