Offshore staff
LONDON– Global drilling and well services expenditure over the next five years is estimated to reach $1.3 trillion, according to Westwood’s latest market forecast.
The global recovery indrilling and completion remains cautious overall, the analyst says, with E&P companies maintaining tight capital discipline and watching for robust, long-term oil price recovery before opening the purse strings again. Focus in the near term will be the onshore market, where project lead-times to first oil are short and overall risk is more manageable.
According to the report, North American activity is expected to drive a 27% increase in expenditure over the next five years. The Latin American market is also forecast to see strong growth, with total expenditure in the region expected to reach more than $20 billion in 2022. Argentina will be a key contributor to onshore drilling activity, notably through the development of the Vaca Muerta shale play, while a recovery in deepwater drilling activity in Brazil will contribute to an increase in offshore expenditure in the early 2020s.
Since the previous edition of the report, Westwood has revised down its outlook for shallow-water wells drilled in 2018-2020, with globaloffshore drilling activity not expected to see a significant recovery until 2021.
Subsequently, growth in the offshore DWS market is expected to be more muted compared to the onshore sector, with expenditure forecast to rise at a 1.7% CAGR over 2018-2022. Growth within the offshore market will be limited to the latter years of the forecast and driven by activity in regions such as the North Sea and Southeast Asia.
Rig and crew and stimulation services, according to the report, will represent the largest proportion of the market over the forecast, with a 26% and 24% share, respectively.
12/06/2018
