Offshore Drilling Market Poised for Growth, Rystad Says

Tuesday, March 23, 2021

Norwegian energy intelligence group Rystad Energy expects to see an increase in offshore wells drilled this year and the next one, compared to 2020, when the number was hit by low oil prices and the pandemic.

Now, with oil and gas demand recovering supported by vaccinations and OPEC+ supply cuts, Rystad expects offshore drilling activity to increase year-on-year by about 10% in both 2021 and 2022. 

"This will bring the number of offshore wells drilled to nearly 2,500 this year, from less than 2,300 in 2020, and we forecast that the corresponding number for 2022 will surpass 2,700," Rystad said.

"Such a healthy recovery is in fact poised to propel offshore drilling activity beyond pre-pandemic levels during the next two years, as the number of offshore wells drilled globally in 2019 was just shy of 2,500. This means the recovery of offshore drilling will already happen in 2021, with 2022 being a year of further growth," Rystad said.

“In contrast to previous years, when the North American shale sector-led production growth, we expect the onshore and offshore shelf in the Middle East and the deepwater market in South America to be the main drivers of growth going forward. To recover production levels, operators will have to launch new drilling plans in tandem with maintenance and enhancement programs for existing wells, opening significant opportunities for well service suppliers in the years ahead,” says Daniel Holmedal, energy research analyst at Rystad Energy.

Rystad expects the deepwater markets in Europe and Africa to remain relatively stagnant compared to other top regions in 2021. 

In Europe, this comes after a strong year of activity in 2020, driven by high project sanctioning activity from 2017 through 2019. Most of the deepwater growth comes from North and South America, where Brazil, Guyana and Mexico are the most prominent drivers of the upswing.

On the well intervention side, West Africa and the Middle East could provide a strong market in the coming years with a total of around 10,000 active offshore wells on oil fields, with an average well age of 16 and 21 years, respectively. In comparison, most other regions have an average well age of between 10 and 15 years, Rystad said.

Categories: Energy Middle East Drilling Industry News Activity South America Rigs

Related Stories

Saipem Wins FEED Contract For Abadi LNG Project FPSO Module In Indonesia

ADNOC Signs Long-Term LNG Deal with Hindustan Petroleum Corporation

Dutch Contractor Completes Malaysia’s Largest 'Rig-to-Reef' Decom Project

Valeura Makes Progress with Multi-Well Drilling Campaign in Gulf of Thailand

Chuditch Gas Field Drilling Ops Get Delayed to Next Year

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Valeura Concludes Eight-Well Drilling Campaign in Gulf of Thailand

Velesto’s Jack-Up Rig Up for Drilling Job Offshore Vietnam

Turkey Discovers New Black Sea Gas Reserve

Current News

Technip Energies Gets FEED Job for Inpex’ Abadi LNG Project in Indonesia

Keppel, Seatrium in $53M Arbitration Case Over Brazil Corruption Scheme

Subsea7 Secures Work at Black Sea Field off Türkiye

CIP, Petrovietnam Team Up for Offshore Wind Project in Vietnam

Seatrium Signs FLNG Vessel Upgrade Deal for Golar LNG

EnQuest Enters Indonesia with Operatorship PSCs for Two Exploration Blocks

PXGEO Nets First Seismic Survey off Malaysia

SPE Offshore Europe 2025 set to drive transformational change for the energy sector

Shipbuilder Delivers Fast Crew Boat Pair to Aesen

Norwegian Oil Investment Will Peak in '25

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com