The outlook for growth in the drilling rig market is positive through to 2017. Following a 16% dip during the economic recession in 2008-2009, operational rigs grew by 6%, and these numbers are forecast to rise again from 2013-2017 by 23%. Rising global production targets and the increasing complexity of well requirements are likely to be key drivers of rig demand over the forecast period. Exploration and development in new regions and enhanced oil recovery in mature regions are subsequent drivers of growth.
Growth in oil demand from newly advanced economies is expected to continue and markets formerly inaccessible to Western contractors are allowing greater access to third party providers. Although the influence of international rig contractors is growing in some countries, markets with high rig counts, including China, India and Venezuela, remain dominated by national oil companies. NOCs continue to dominate the majority of markets within the MENA region; however, growing international contractor influence in the significant rig fleets of Iraq and Kuwait is likely to continue throughout the forecast period.
Where more complex well drilling requirements are increasing, rig fleets will need to modernise to maximise the efficiency of drilling operations. With many fields in the traditional producing regions of the world reaching maturity, unconventionals will account for an increasing proportion of the energy mix. Deviated and horizontal drilling is likely to increase as a result of this, driving demand for higher specification rigs which are capable of such complex techniques.
Despite the forecast growth, challenges remain as existing fields mature and new hydrocarbon resources increasingly demand rigs capable of deviated drilling. As enhanced oil recovery and fracturing techniques become more in demand, greater investment and addressing of environmental concerns will need to take place as the industry seeks to increase output from previously inaccessible reserves.
This unique and acclaimed report contains detailed analysis and in-depth country-level data providing a comprehensive view of the land drilling rig market through to 2017.
The report has been developed and expanded, following client feedback and extensive industry analysis, to include: