Market Research Report - 244573
World Land Drilling Rig Market Forecast 2015-2019
|Published||Content info||100 Pages|
|World Land Drilling Rig Market Forecast 2015-2019|
|Published: February 6, 2015||Content info: 100 Pages||
Given the current economic conditions, there is a more modest outlook for the land drilling rig market through to 2019. The recent decline in oil price is expected to result in a 19% drop in onshore wells drilled in 2015, with several operators having announced planned reductions in expenditure. This expected fall in drilling activity is likely to have a significant impact on rig demand, with the global operational and active rig populations forecast to decline by 11% and 12% respectively in 2015.
Based on a scenario in which the oil price returns to pre-crisis levels of $70-80 per barrel in 2016, the number of operational rigs is expected to rise by 19% over 2015-2019 as drilling activity recovers. Asia-Pacific is expected to see the largest regional increase in capable fleet size, with 230 units forecast to be added in 2015-2019.
Increased well depths and drilling complexity have resulted in rising demand for high horsepower (HP) rigs, with the global number of active rigs rated over 1,250 HP having risen by 33% in 2010-2014. This trend is set to continue over the forecast period at a CAGR of 5%. More complex well drilling requirements are also expected to drive an increase in expenditure on components such as top drives over the 2015-2019 period. An increase in the number of rigs being converted to AC power, as well as the use of technologies such as pad drilling, is expected as operators seek to maximise the efficiency of drilling operations.
The possibility of a further decline in oil price remains a potential downside risk to the forecast. Although the risk to conventional onshore drilling is lower, high Capex unconventional projects, including the use of Enhanced Oil Recovery (EOR) techniques could become uneconomic if the current economic conditions continue. In this event, demand for high HP rigs is likely to be impacted.
The report has been developed and expanded, following client feedback and extensive industry analysis, to include:
The report includes the very latest market outlook based on DW Drilling & Production data and reflects the current low oil price environment.
DW's market forecasting is trusted by sector players worldwide, with clients including the world's top-10 oil & gas companies, top-10 oilfield services companies and top-10 private equity firms.
The report is essential reading for land rig contractors, rig manufacturers, oilfield service companies, oil & gas operators and financial institutions wanting to better understand where and when to make investment decisions.