E&P expenditure to reach $920 billion in 2024

Rystad Energy expects the global oilfield service market to be back at pre-downturn market levels by 2024 with $920 billion of total E&P expenditure for offshore, shale, and conventional onshore resources. Shale is expected to recover even faster and will surpass 2014 levels as soon as 2020. It will make up 23% of the total service market in 2024 compared to only 19% in 2014. Offshore is losing market share due to the sanctioning draught in 2015-2017, which is keeping greenfield spending at lower levels going forward. In terms of service markets, well services and commodities, subsea, and MMO will surpass 2014 levels in 2024, but drilling contractors and EPCI will not due to continued pressure on service prices, downsizing and efficiency gains in the value chain.