News and Analysis

March 01, 2010: Following a sharp decline in 2009 caused by flagging energy demand, global drilling is predicted to rise 12% in 2010-2014 compared with the previous five years. Global spending is forecast to rise 33% over the period, translating into a total expenditure of $387 billion. Africa, which recently surpassed Western Europe in spending terms, looks set to be the boom market.

Nearly 18,000 offshore wells were drilled over the last five years, with numbers peaking in 2007. The forecast is of a recovery in 2010, followed by consistently rising numbers up to 2013 to total over 20,000 wells over the five-year period. Around $291 billion was spent over the last five years on offshore drilling.

Datamonitor forecasts that spending in Asia will rise 24%over the next five years, after the sharp decline in 2009. Well numbers for the whole period could increase by 9%. For North America, a rise in spending of 30% is forecast over the period 2010-2014. Well numbers will jump by 7% after exceptional lows last year. 75% spending in Africa is directed at West Africa-- primarily Angola and Nigeria -- while Egypt attracts most of the remainder. Spending is forecast to rise 55%, after small decline in 2009, while well numbers are forecast to increase by 29%. The African market continues to boom for deep water services with high specification rigs still in demand. (Source: Rigzone)