Global Drilling Spend to Increase 32% by 2013
Source: Oil & Gas Journal, Uchenna Izundu (4/21/09)
"The report said there will be sufficient numbers of deepwater development rigs to meet market demand."
Although there will be reduced spending in 2009 and 2010 due to the global recession that has reduced oil demand, operators are expected to increase spending on offshore drilling by 32% from 2009 - 2013 compared with 2004 - 2008.
Report author Dr. Michael R. Smith of Energyfiles said, "Shallow water exploratory drilling levels are not expected to ever return to their most recent 2007 peak but growth in deepwater drilling has supported exploratory drilling over the last 5 years - to reach 40% of all exploratory wells by 2013. The steady growth is a result of new ultra-deepwater targets becoming increasingly viable, as the capability of deepwater production systems is improved, giving additional encouragement to explorers to take these expensive risks."
The data revealed demand for high-specification floating rigs that can operate in deep water and harsh environments with utilization and day rates holding up. The report said there will be sufficient numbers of deepwater development rigs to meet market demand.
Until 2006, shallow oil drilling surged because of rising oil prices but has since leveled off. "A decline is now forecast followed by returning growth as many of the delayed projects of 2009 are restarted. Growth would be even more marked if not for better, more productive well bores allowing fewer wells per field," said Smith.
In 2004 - 2008, $278 billion was spent on offshore global drilling. By 2013 this is forecast to increase to $367 billion.
According to the report, operators will see the number of wells being drilled around the world rise by 7% in 2009 - 2013, despite a sharp decline in 2009 with Asia leading the trend followed by North America and Western Europe. Around 19,570 wells are expected to be drilled by 2013.