Concerns are rising over a potential slowdown in investment in offshore oil and gas projects, as Clarkson Research projects that capital expenditure in this sector will fall to $85 billion in 2026, the lowest level recorded since 2020.
Clarkson Research Services Ltd. stated that global capital expenditure on offshore oil and gas projects is expected to reach around $85 billion in 2026, marking a 24% decline compared to the $111.9 billion recorded in final investment decisions in 2025.
According to the company’s analysis, released ahead of the 2026 Offshore Technology Conference in Houston, approximately $34 billion has already been committed this year.
This level of spending would be the lowest in the offshore sector since 2020.
The report noted that the backlog in subsea engineering, procurement, and construction has reached a record high of $52 billion, while day rates for offshore vessels in the North Sea have increased by 12% year-to-date due to tightening supply.
The maritime research firm observed that the ongoing war involving Iran is having mixed effects on energy-related markets, with operational difficulties in the Arabian Gulf being partly offset by increased activity in other regions of the world, along with a renewed global focus on energy security.
After a weaker performance in 2025, the Clarkson Offshore Rate Index, which tracks drilling rigs, support vessels, and subsea units, has risen by 3% so far in 2026 to reach 111 points. This is 11% above its 2014 peak and double its 2018 low.
The report also stated that global demand for jack-up rigs stands at 387 units, up by 13 units year-on-year, with utilization reaching 89%. Premium jack-up rates have increased by 11% year-to-date, reaching around $103,000 per day.
Demand for floating rigs stands at 130 units, while ultra-deepwater rig rates have increased by 5% so far this year to around $373,000 per day, after declining by 13% in 2025.
Offshore support vessel markets have also improved, with West Africa platform support vessel rates up 5% year-to-date, and North Sea rates also recording notable gains.
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