- Latest data from Westwood Global Energy Group (WGEG) predicts recovery in some Oil Field Services (OFS) markets, whilst others will remain sluggish
- Recovery expected in onshore drilling and the Maintenance, Modifications and Operations (MMO) market
- Oilfield equipment will continue to see challenging conditions, primarily because of an oversupply of equipment
- With a greater focus on niche OFS markets, WGEG's Sectors analytics tool now gives access to trends and predictions in over 100 sub sectors.
(Aberdeen, UK) – 18 May 2017 – The latest data from Westwood Global Energy Group (WGEG), the energy market research consultancy, predicts that North America will lead a recovery in onshore drilling over the next few years. In particular, it expects strong growth for drilling and well services expenditure to 2023, with a cumulative total of $1.6tn to be spent – 76 per cent of it onshore.
Oilfield equipment, on the other hand, is expected to see stagnation in terms of dollar demand through to early next decade before signs of a recovery emerge. This is due primarily to the marked oversupply of equipment. Most critically, the newbuild offshore rig market (comprising jackups, semisubs, and drillships) is expected to continue to decline from a peak of $24bn in 2013 to just $4.2bn by 2023.
In terms of growth rates, offshore MMO looks to be the most promising sector, with a substantial and sustained recovery in expenditure likely to be seen through to 2023.
The latest data comes from Sectors, WGEG's powerful online analytics tool, which enables OFS companies and operators as well as financial advisory firms, to review market potential and future hotspots of multiple service and equipment lines, plus drilling and production activity.
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