DNB: Oil companies could reduce plans for newbuildings

The oil companies' investment slowdown could halt the demand for newbuildings, for instance supply ships, thus preventing another boom, says Kristin H. Holth, Global Head of Shipping, Offshore & Logistics at DNB.

Photo: Stig B. Fiksdal

No matter how bad something is, there is bound to be someone, somewhere, who stands to benefit from it, they say. And this is how major Norwegian bank DNB feels about the oil industry's collective decision to scale down investments in the coming year, a consequence of higher costs and reduced revenues.

And this development could mean that the offshore industry will hold out on placing newbuilding orders for drilling rigs as well as supply vessels, says Kristin H. Holth, Global Head of Shipping, Offshore & Logistics.

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