World Oilfield Services Market Forecast 2016-2020<\/span><\/em><\/em><\/p>\nThe USA is the main driver of global onshore OFS trends \u2013 over 2011-2015, 42% of total onshore OFS expenditure was attributed to the USA, driven by the unconventional boom. After a lean few years, DW expects a recovery in onshore drilling in the USA through the forecast period, predicting a 143% increase between 2016 and 2020 for annual onshore wells drilled as rising oil prices bring lower-quality shale acreage back into economic viability. This will result in a recovery in OFS spend \u2013 DW expects a year-on-year growth rate of 21% for onshore OFS expenditure for the USA between 2016 and 2020, reaching $68bn by 2020.<\/p>\n
China\u2019s growing shale industry will drive onshore OFS expenditure throughout the forecast period. Onshore investment in China is moving away from mature oil plays and towards gas-targeted drilling \u2013 onshore drilling targeting gas in China is set to increase by 62% from 2016 to 2020. Although expenditure across all OFS service lines in China is projected to decrease in 2016, coiled tubing services will be one of the least affected (declining by 6%), due to increasing use for well intervention and horizontal\/deviated conveyancing. DW expect China\u2019s onshore OFS spend to reach $28bn in 2020.<\/p>\n
Unlike China and the USA, where growth will be driven by unconventional drilling, Russia is set to drill numerous conventional wells to exploit East Siberia\u2019s substantial gas reserves. This will help to satisfy the demands of upcoming LNG plants as well as huge piped volumes destined for China. Onshore drilling will therefore remain stable at approximately 8,900 wells drilled a year between 2016 and 2020. This sustained level of activity will lead to growth of at least 3% year-on-year across all service lines throughout the forecast period, resulting in onshore OFS expenditure reaching a record $33bn in 2020.<\/p>\n
Despite strong growth profiles for the onshore OFS sector, combined expenditure levels in 2020 will remain at a significant discount to levels seen in the market upcycle for the three countries highlighted in this article, despite Russia\u2019s individual growth. Overall expenditure across the three will total $129bn in 2020, just 65% of the 2014 peak. Despite the reduction, these three countries remain at the top, representing a massive 69% of the total onshore OFS market in 2020.<\/p>\n","protected":false},"excerpt":{"rendered":"
Douglas-Westwood\u2019s (DW) Q3 2016 World Oilfield Services (OFS) Market Forecast predicts a renaissance in onshore spend through the remainder of the decade, with global expenditure increasing 10% year-on-year, reaching $187 … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":5016,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[454,4409,637,1916,2206,2662],"class_list":["post-5369","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-china","tag-douglas-westwood","tag-drilling","tag-onshore","tag-russia","tag-usa","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/08\/Uganda-Rig.jpg?fit=432%2C288&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-1oB","jetpack-related-posts":[{"id":11281,"url":"https:\/\/www.oilnewskenya.com\/index.php\/oilfield-services-companies-represent-important-opportunities-for-africas-energy-sector-in-2022\/","url_meta":{"origin":5369,"position":0},"title":"Oilfield Services Companies Represent Important Opportunities for Africa\u2019s Energy Sector in 2022","author":"","date":"December 3, 2021","format":false,"excerpt":"By NJ Ayuk, Chairman of the African Energy Chamber\u00a0 Oil and gas in Africa especially the central African region is just starting to hit its stride, OPEC Secretary General H.E. Mohammed Barkindo, told a meeting of major oil companies a few months ago, and the future is especially bright in\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/12\/oil-field-services-companies.jpg?fit=976%2C580&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/12\/oil-field-services-companies.jpg?fit=976%2C580&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/12\/oil-field-services-companies.jpg?fit=976%2C580&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/12\/oil-field-services-companies.jpg?fit=976%2C580&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":8394,"url":"https:\/\/www.oilnewskenya.com\/index.php\/global-ofs-demand-is-set-for-a-25-decline-in-2020\/","url_meta":{"origin":5369,"position":1},"title":"Global OFS demand is set for a 25% decline in 2020","author":"","date":"June 23, 2020","format":false,"excerpt":"Global demand for oilfield services (OFS), measured in the total value of exploration and production (E&P) company purchases, is set for a massive 25% yearly drop in 2020 as a result of the Covid-19-caused downturn, a Rystad Energy analysis shows. Spending is expected at $481 billion this year and take\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2018\/06\/Somalia-oil-and-gas.jpg?fit=900%2C603&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2018\/06\/Somalia-oil-and-gas.jpg?fit=900%2C603&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2018\/06\/Somalia-oil-and-gas.jpg?fit=900%2C603&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2018\/06\/Somalia-oil-and-gas.jpg?fit=900%2C603&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":8589,"url":"https:\/\/www.oilnewskenya.com\/index.php\/oil-and-gas-drilling-set-for-at-least-a-20-year-low-in-2020\/","url_meta":{"origin":5369,"position":2},"title":"Oil and gas drilling set for at least a 20-year low in 2020","author":"","date":"July 15, 2020","format":false,"excerpt":"The COVID-19 pandemic has stymied oil and gas activity, a phenomena which has now affected the drilling market both in terms of wells drilled and in terms of related demand for drilling equipment. 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![\"Onshore](\"https:\/\/i0.wp.com\/www.douglas-westwood.com\/wp-content\/uploads\/2016\/11\/Onshore-OFS-expenditure-for-Russia-China-USA-and-RoW-2016-2020.png\")
<\/a><\/p>\n