Global offshore drilling activity eased in 2025 and remained broadly stable during the first five months of 2026, following a strong increase in 2024.
The rig count is a standard measure of activity in the oil and gas industry. It refers to the number of active drilling rigs in operation at any given time. It is a key indicator of the health of the industry and also a useful indicator of future production, investor confidence, and demand for energy support services, particularly drilling-related services and equipment.
The rig count can be influenced by a number of factors, including oil and gas prices, drilling costs, market expectations, capital allocation strategies and technological developments.
Internationally, most drilling activity still takes place in North America. However, the majority of those rigs are deployed onshore. Offshore drilling activity remains concentrated in a smaller number of regions, particularly Asia Pacific, the Middle East and Latin America.
The latest data shows that global offshore rig activity declined from approximately 300 active rigs in 2024 to 251 in 2025. During the period from January to May 2026, offshore activity averaged around 250 active rigs, suggesting that the market has stabilised, but remains below 2024 levels.
Asia Pacific continued to record the highest offshore rig count of any region. After reaching a ten-year high of 100 active rigs in 2024, activity moderated to 86 rigs in 2025 and remained at the same level during the first five months of 2026. China and India continue to account for a significant share of offshore drilling activity in the region.
The Middle East recorded the most significant increase in recent years. The offshore rig count more than doubled from 45 rigs in 2023 to 104 rigs in 2024 before easing to 84 rigs in 2025 and 78 during the period from January to May 2026. Much of this growth was driven by national oil companies pursuing long-term capacity expansion programmes, particularly in countries such as Saudi Arabia, Qatar, and the United Arab Emirates. Even with the decline from 2024 levels, activity remains well above historical averages and reflects continued investment in the region’s upstream sector.
Latin America, which includes Trinidad and Tobago, Guyana, and Suriname, recorded 37 active offshore rigs in 2024 before falling to 29 in 2025 and 27 during the first five months of 2026. The region remains below the levels seen a decade ago, when offshore rig activity exceeded 60 rigs in 2015.
Africa also experienced a reduction in offshore drilling activity. Active rigs declined from 23 in 2023 to 14 in 2024 and 11 in 2025, before recovering slightly to 15 rigs during the first part of 2026.
The chart shows that offshore drilling activity continues to be sensitive to major changes in commodity prices and industry investment cycles. Activity fell sharply following the 2015 oil price collapse and again during the COVID-19 period in 2020. While there was a recovery in subsequent years, offshore rig counts remain below the levels recorded before the 2015 downturn.
The decline from 300 active offshore rigs in 2024 to around 250 in both 2025 and early 2026 suggests that many operators continue to take a disciplined approach to capital spending. Although oil prices have generally remained supportive of upstream investment, companies have become more selective in allocating capital to new exploration and development projects.
Offshore drilling projects also continue to face higher costs than in previous cycles. Deepwater developments in areas such as Brazil’s pre-salt province and offshore Guyana require specialised floating production systems and high-specification drilling rigs, both of which remain in strong demand. Supply chain constraints, equipment availability, inflationary pressures, and longer project lead times have all affected investment decisions. Tightness in the market for offshore vessels, drilling equipment, and specialised services has increased project costs and delayed development schedules in several regions. Higher interest rates and tighter financing conditions have also increased the cost of capital, making companies more cautious when evaluating large offshore investments that may take several years to generate returns.
Recent geopolitical developments have added further uncertainty. Disruptions to global shipping routes, including attacks on commercial vessels in the Red Sea and ongoing tensions in the Middle East, have increased transportation costs and delivery times for critical equipment. Rerouting vessels around the Cape of Good Hope instead of using the Suez Canal has increased voyage times and freight costs for some shipments serving the offshore industry.
The US-Iran conflict in 2026 also contributed to uncertainty in global energy markets. Concerns over potential disruptions to oil and LNG shipments through the Strait of Hormuz led to increased price volatility during the period. While offshore drilling programmes are typically planned years in advance and are unlikely to be affected immediately, prolonged disruptions could influence future rig counts through higher project costs, increased insurance and shipping expenses, supply chain delays, and changes in investment priorities.
Trade disputes between major economies have created additional challenges for the industry. Tariffs on industrial goods, steel, and energy-related equipment can increase procurement costs and complicate project planning. At the same time, uncertainty surrounding global economic growth and future oil demand has encouraged many companies to prioritise lower-risk projects, shareholder returns, and debt reduction over aggressive expansion programmes. These factors have contributed to a more uncertain investment environment, despite generally supportive oil prices.
The offshore industry remains active across all major producing regions, but the data suggests that operators continue to prioritise capital discipline and project economics. While periods of higher activity are still possible, the industry has not returned to the levels of offshore drilling seen before 2015, despite periods of stronger commodity prices.
