Home / Microsites / Global and Regional Markets (page 2)

Global and Regional Markets

Brazil is mindful of E&P challenges, will continue to lower ‘above-ground’ risks, ANP Director General says

Proposal to include pre-salt blocks under open acreage program and adjusting fiscal terms among steps being taken to enhance competitiveness of Brazil’s assets By Stephen Whitfield, Associate Editor Recognizing that oil companies – facing unstable prices and stringent environmental regulations – have become much more selective about where they place investments, Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP) is undertaking multiple efforts to increase the attractiveness of the country’s hydrocarbon assets. “We are aware that oil companies are focusing on opportunities that can resist lower oil prices in the long term and have a lower carbon footprint,” ANP Director General Rodolfo Saboia told DC in an exclusive interview. “We have done a lot over the last years ...

Read More »

North American land drilling market moving up, but at a gradual pace

Amid slow recovery, operators are still hedging against potential oversupply in 2022, while strong natural gas prices may lead to some reallocation of resources By Stephen Whitfield, Associate Editor Heading into 2022, the North American shale market appears to be in the early stages of a recovery from the COVID-fueled oil price downturn.  A gradual increase seen in this year’s US rig count, driven mostly by activity in the Permian Basin, is likely to continue into next year, according to Rystad Energy. The number of wells drilled in US shales is also likely to see an uptick in 2022. Overall, Lower 48 oil production is expected to increase from 9.4 million bbl/day in Q4 2021 to 10.0 million bbl/day by ...

Read More »

Offshore rig utilization continues upward trend, but not all regions seeing bumps in dayrates yet

Westwood: Global marketed utilization could reach as high as 85% in 2022 if rig attrition continues By Terry Childs and Alex Middleton, Westwood Global Energy Group The global offshore rig market has experienced somewhat of a recovery – at least in utilization – in many regions. The price of Brent crude seems to have risen and stabilized at more than $70 over the past several months. Additionally, oil companies and rig owners have mostly managed to navigate through many of the logistical hurdles posed by the COVID-19 pandemic. Drilling programs that had been postponed have now begun or are back on schedule. As a result, the number of contracted rigs has rebounded, and fleet utilization (jackups, semisubmersibles and drillships) is ...

Read More »

Driven by Golden Triangle demand, drillship recovery eclipses jackups

Some 7th-generation drillships in Gulf of Mexico already seeing dayrates move past $300,000; additional gains are likely in 2022  By Teresa Wilkie, Esgian The jackup market usually bounces back faster after a downturn than deepwater does. Short-cycle, shallow-water projects with more predictable economics and strong national oil company (NOC) demand make jackup rigs attractive as a first step in the market’s recovery. But not this time. The drillship and semisubmersible segments have witnessed a combined increase in competitive utilization of 14% since September 2020, with drillships particularly standing out with a rise of 23% during the period. In comparison, the jackup segment dropped to its lowest point of around 68% last year and is currently sitting at 72%, totaling a rise ...

Read More »

International onshore rig demand to see slow recovery through 2025

Near-term outlook characterized by cautious optimism, with China, Russia and Middle East expected to drive bulk of growth in rig and well counts out to 2025 By Stephen Whitfield, Associate Editor The past two years have been tough for the international onshore land drilling market, from Asia Pacific to Europe to the Middle East to Latin America. Going into 2022 and looking out to 2025, however, things are looking up, according to Westwood Global Energy Group’s 2021 World Land Drilling Market Forecast. The firm is forecasting increases in most relevant metrics, including rig count, utilization rate and number of wells drilled. By 2025, Westwood expects operators will be drilling an estimated 50,200 onshore wells globally, up from just 38,500 in 2020 ...

Read More »

Despite lingering uncertainties, NOV rig census shows recovery is afoot

Compliance with OPEC+ production cuts, healthy oil prices and fleet attrition are all contributing to higher rig utilization rates as the market continues to heal By Tarjei “TJ” Myklebust, Karl Appleton and Kevin Scherm, NOV If 2020 was the year of COVID-19 initial impact, 2021 has been the year of COVID-19 recovery. That is not to say the recovery is at, or even near, completion. However, in the oil and gas industry, recovery is happening sooner than many expected. Demand has improved, but more importantly, the supply of oil and gas was intentionally reduced by OPEC+, helping return oil to a healthy and somewhat stable price. Global rig demand drastically improved from the historic 2020 census low point. Unsurprisingly, the biggest ...

Read More »