Drilling rigs have taken a $30billion (£22.5bn) hit to their values over the last 12 months, according to Bassoe Offshore.
Borr Drilling has announced the sale of its third rig in a month as the firm seeks to consolidate its fleet size.
Use of offshore drilling rigs globally has seen the largest monthly drop in 20 years, according to analysis from Rystad Energy.
Scrapping of offshore oil rigs needs to be significantly ramped up in order to end the “bankruptcy nightmare” of their owners, according to Bassoe Offshore.
Rig operator Seadrill increased its losses for the start of 2019 amid lower utilisation of its fleet.