Douglas Westwood’s recently presented report provides an essential and complete overview of the technology and future prospects for the offshore drilling business. It reviews and forecasts the world market by region and type of activity. By the number of wells being drilled and by the investment capital that will be required to fulfill this activity.
The report analyses the current state of the drilling industry. Suitable for readers of all backgrounds it presents a detailed historical and current review of offshore drilling technology, discussing traditional and new techniques as well as the commercial impact these may have on the development of the drilling industry over the next few years.
Drilling is forecast to rise 7% over the period 2009-2013 compared with the period 2004-2008, despite a sharp decline in 2009. The forecast for 2009-2013 is of a decline in 2009, followed by consistently rising numbers including a sharp jump in 2011, to reach around 19,600 wells over the five year period. Drilling forecasts are presented in table and chart form in a clear and accessible format.
In 2008, rigs are estimated to have represented an average of 37% of total well costs in that year, much the same as 2007. A little under 40% of rig costs were used to drill deep water wells, unchanged from 2007 after a 25% jump in that year.
Global rig spends had been increasing dramatically since 2004 both as a proportion of well costs related to deep water drilling increases (where the rig costs command a greater proportion of total costs) and due to inflationary effects. However spends stabilised in 2008 and are expected to decline in 2009, followed by a slow and then faster resurgence from 2010.
Formulated costs for different types of well are detailed in the report, subdivided into the rig, engineering, geoscience and support sectors, then further subdivided into individual cost elements for key offshore drilling services over the period.
Spending is forecast to rise 32% over the period 2009-2013 compared with 2004-2008 despite reduced spending in 2009 and 2010. Approximately USD278bn was spent globally over the last five years on offshore drilling. The forecast for 2009-2013 is of lower spends in the first two years followed by a return to previous levels of growth, to reach around USD367bn over the five year period.
The World Offshore Drilling Spend Forecast 2009-2013 provides essential information for decision-makers in oil and gas companies and in the contracting and supply industries, and is an invaluable asset for government departments and financial institutions involved in strategy formulation and valuation.