It is reported that since the beginning of 2014, crude oil prices have fallen by about 50%. The decline in the price of oil to a certain extent, reduce the pressure on the merchant, but it has brought a heavy blow to the marine market. Because of the delay and cost overrun, the operators are facing cash flow problems. In order to ease the crisis, operators have to cut the cost of exploration and production. Is expected this year, the exploration and production costs will be reduced by 19%.

The cost of exploration and development means that the investment decision to postpone and increase the oil recovery rate in the existing oil field has been reduced. Accordingly, the demand for offshore drilling market is down, however, the new jack up drilling platform and the floating platform (including semi submersible drilling platform and the delivery of the drilling ship is accelerating. At present, the ultra deep water offshore drilling platform day rent has dropped to about $300000, compared to the end of 2013 the highest value fell to nearly 50%. At the same time, the daily rent of the jack up rig is also more than 35%, down to about $100000, fleet utilization rate of less than 80%.

The downturn in the offshore drilling market led to the slump in the market. At present, 1133 of the 5365 owners of the ship to support the ship OSV. OSV market is under pressure due to the decrease in demand for oil exploration and drilling operations. Reduction in the number of active drilling platforms has resulted in a decline in the market demand for the three used in the drilling platform. The demand of the platform supply ship (PSV) is mainly from the offshore installations (drilling platform, mobile and stationary production platforms). Global OSV days in various regions of the average decline of 35%. In addition, the huge PSV handheld orders to the market has brought another big problem, at present, 4000 tons of PSV handheld orders accounted for nearly 40% of the proportion of the existing fleet.

Nevertheless, taking into account the cyclical nature of the industry, the current supply of the global oil market is only a short-term problem. In the long run, the expected demand trend shows that oil prices will rise again, the industry will eventually be re recovery.