Authored by Alex Kimani via OilPrice.com,

It looks like the offshore oil and gas drilling market is in the early innings of an upcycle in investment and activity.

Both Schlumberger and Transocean believe that the upcoming cycle will outpace the 2016-2019 cycle of investment and FID activity.

Demand for offshore vessels and rigs is climbing, with most new rig contracts being fixed at day rates that are higher than their prior contracts.

After years of uncertainty and stagnation, the offshore drilling market is on the rebound and is in the early innings of an upcycle in investment and activity that will outpace the 2016-2019 cycle, major services and rig providers say.   Analysts and top offshore drilling executives say that offshore rig utilization and day rates are also rising in a market that is expected to tighten going forward.