The global drilling market continues to be exposed to the cross-current between higher oil prices and increased capital discipline. Recently, spot oil prices have risen sharply; this comes as a response to the decision by “OPEC plus” to extend its production cuts through the end of 2018, plus strong global oil demand growth, and a decline in global oil inventories.
However, unlike in past price cycles, US operators are expected to maintain a high degree of capital discipline going forward, dampening the increase in drilling activity relative to the rise in oil prices. At the same time, longer-term oil prices have been slower to move, hindering the pace of new project sanction in markets outside North America.
The Drilling and Production Outlook (DPO) is a quarterly forecast of rig activity, wells/footage drilled and spending in more than 50 countries and is used by oilfield equipment and service companies as an important planning tool for future sales, marketing and manufacturing efforts.
Key Information in the Drilling and Production Outlook includes:
Oil markets - demand, supply, and price
Gas markets - demand, supply, and price
Average active rig count (land and offshore)
New wells drilled (land and offshore)
Footage drilled (land and offshore)
Drilling and Completion expenditures (land and offshore)