Recovery of Global Offshore Investments Is Underway
Offshore oil and gas investment is projected to rebound significantly following an uncertain 2025, with annual spending projected to average $57 billion from 2026-2029. Spending has taken a dip as rising supply chain costs have delayed Final Investment Decisions (FIDs), prompting operators to seek price reductions due to lower-than-expected oil prices; however, industry analysts predict an uptick in FID activity throughout 2026 as market conditions stabilize.
Rig contracting activity has decreased substantially since 2024, leading to lower utilization and dayrates across the sector. Demand for deepwater rigs should rise during the second half of 2026 as postponed projects resume operations; while Saudi Aramco may implement strategies designed to revive its jackup market.
China's Bohai Oilfield Breaks Production Record
China's Bohai Oilfield recently set an historic milestone by producing over 40 million tonnes of oil equivalent in 2025, as reported by China National Offshore Oil Corporation (CNOOC). CNOOC announced their record output on December 21, 2025 - marking it as its highest annual production ever. As China's most significant offshore oilfield both in terms of output and scale, this record production supports national energy security as well as economic development.
European North Sea Revive Amid Energy Security Shift
Europe is projected to account for one-fifth of total oil project starts between 2025 and 2030, driven by increased production activity intended to reduce dependence on Russian oil imports. This strategic shift includes ongoing exploration and development programs in the North Sea as European supermajors adjust their strategies; decarbonization remains at the core of long-term planning; however, operators are placing greater importance on disciplined oil and gas investments for cost efficiency purposes in an unpredictable market context.
SLB and Technip Energies, among other contractors with offshore geotechnical experience such as SLB are supporting energy independence efforts through investments in offshore infrastructure and technology projects across Australia and Norway while keeping production at full capacity.