Despite declining well numbers in many offshore areas, drilling services will attract a flood of cash for the industry if you know where to look. This unique report from Douglas-Westwood 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 in terms of well numbers and expenditure levels.
The report analyses the state of the drilling industry, presenting a detailed review of offshore drilling technology suitable for readers of all backgrounds. It discusses traditional and innovative techniques and their commercial impact on the industry over the medium term future.
Due to lack of opportunities, offshore drilling has been on a declining trend since 1997. This trend is forecast to continue albeit with a modest oil price-led resurgence in later years. Even deepwater drilling has been rather flat due to a shortage of new areas to exploit. But with surging oil prices, shallow water drilling has stabilised, although further declines are now forecast. Meanwhile, total drilling will be supported by rapid growth in deepwater drilling, especially in West Africa and the Gulf of Mexico. Drilling levels are discussed in every country in the world having offshore prospects, with regional forecasts presented in tables and charts in an improved and more accessible way. "The World Offshore Drilling Spend Forecast 2006- 2010" provides essential information for decision makers in oil companies and in the contracting and supply industries, government departments and financial institutions.
Within the offshore drilling sector, over 40% of expenditure is directed towards engineering services, a quarter is earmarked for support and 7% goes towards geoscience. Although rigs are the biggest single cost, it is surprising that they only comprise 26% of total well costs. Costs for different types of well are detailed, broken down into rigs, engineering geoscience and support, further subdivided into individual cost elements for all offshore drilling services.The report estimates that over the last five years, $160bn was spent on shallow water drilling whilst $33bn was spent on deepwater drilling. Over the next five years it is forecast that over $195bn will be spent on shallow water drilling, with deepwater drilling expenditure almost doubling to $65bn. The report presents full details of these forecasts - where the cash will be spent and when.