Demand for land drilling rigs is expected to increase 23% by 2017, with the greatest percentage of growth expected in Western Europe, according to a recent forecast released by Douglas-Westwood.
Although the region has few rigs compared to other areas, anticipated unconventional action could spark a 63% increase in drilling rigs within the next five years. Currently, the Western European region has an estimated 115 capable drilling rigs, according to the report. An expected focus on shale reserves within the UK region could increase that amount.
Onshore shale-gas basins in Western Europe are believed to hold 72 trillion cubic feet (Tcf) of technically recoverable resources, according to the US Energy Information Administration. About half of this amount is in France's Paris and Southeast basins.
“With many fields in the traditional producing regions of the world reaching maturity, unconventionals will account for an increasing proportion of future hydrocarbon production,” Hannah Lewendon, the report's author, says. “Deviated and horizontal drilling is likely to increase as a result of this, driving demand for higher specification rigs capable of such complex techniques.”
The report showed that deviated and horizontal wells currently represent 28% of the development wells worldwide. Around 31% of wells are predicted to be nonvertical by 2017.
Overall, “the global fleet will need to increase by approximately 1,303 capable units to meet drilling demand,” according to the report. “Strong volume growth in North American, Asian, Eastern European, and former Soviet Union (FSU) markets is expected to drive the increase, although all other regions can expect to see increases in their fleet size through 2017.”
Demand drivers include higher global production targets and the increasing complexity of well requirements, as well as exploration in new regions and enhancd oil recovery in mature regions.
Rigs drilling onshore are forecast to increase 20% by 2017. The uptick in activity is unlike what the industry experienced in the previous five-year period, when an economic downturn resulted in a 3% drop in the number of wells drilled. In North America, the number of rigs drilling decreased 28% from 2008 to 2009, according to the report.
In the next five years, however, North America's capacity of 3,487 capable drilling rigs is predicted to increase by 11% as operators continue developing shale resources, with activity nowadays focused more on oil than gas.
—Velda Addison
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