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well analytics
Expert analysis and insights into the global drilling and completion activity
Global Well ReportQuarterly report covering global drilling and completion market• Historic and forecasted drilling and completion activity• Analysis on the well trends in all geographical regions• Offshore, shale and conventional activity• Wells drilled and completed, drilling lengths, drilling time,
rig demand and active producing wells• Market size and purchase trends of well services, drilling
services and rig demand in monetary terms• Key project status; overview of exploration, field
sanctioning and field start ups• Market share analysis and contract awards
Oilfield Service CommentariesFrequent expert commentaries on industry events and their impact• Timely releases• High-quality analysis from industry experts• Topics cover projects, service companies, contracts and
M&A activity
FactsheetsLibrary of quantitative factsheets derived from WellCube:
Reports
AnalyticsOilfield Service
AnalyticsRig AnalyticsWell Analytics
Databases DCube SCube
WellCube RigCube
Oilfield Service Solutions
Oilfield Service Report – June 2018
*We assume that a contracted drilling rig delivers 275 days of drilling per year and that the remaining time is spent performing non-drilling operations and moving of the rig.Source: Rystad Energy Research, WellCube, SCube and DCube
Drilling Contractors: Land Drillers
Land rig demand Supplier revenues Annual purchases
Dril
ling
Con
trac
tors
Land
Dril
lers
• The chart below shows the effective land rig demand split by continent.
• We expect global land rig demand to be nearly 4,320 rig years in 2019. This represents a 3% growth compared to 2018. Going forward, we expect 2% average annual growth towards 2021.
• Growing demand for high spec rigs in North America is driving growth. Russia and the Middle East are also contributing to the global growth.
• The chart below shows land driller revenues for the top companies covered in SCube. In total, 34 companies are included.
• The main land drillers providers are reporting 3% revenue growth QoQ and 25% YoY.
• Market shares amongst the top providers are mostly unchanged QoQ. Eurasia Drilling has gained slightly after an estimated 9% growth QoQ.
• Patterson-UTI (6% QoQ), Schlumberger (5%) and Nabors (3%) are also reporting growth in Q2, while H&P has stayed flat revenues.
• The chart below shows land drillers spending.• Land drillers spending includes both drilling and
workover rigs purchases and rentals.• Overall, we expect land driller purchases to increase
by 17% in 2019, passing $39 billion. Driven by increasing shale drilling activity, we expect growth at an average annual rate of 11% towards 2021.
• The projected growth is due to both increasing activity and improving rig rates.
• The shale segment will continue to drive growth. In general, high spec rigs are required to cover this part of the demand growth.
Offs
hore
Dril
lers
Land rig demandRig years*
Continent 2019/2018 CAGR 2018-2021
Russia 2.4% 0.0%
Europe -21.6% -4.3%
America N 6.4% 7.7%
America S -2.4% 0.7%
Africa 12.4% -0.7%
Middle East -1.5% -1.6%
Asia & Australia 1.9% -1.4%
2018-2021CAGR: 2%
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
2014 2015 2016 2017 2018 2019 2020 2021 2022
Land driller revenuesUSD billion
0.6 0.5 0.5 0.5 0.5 0.6 0.6 0.6 0.8 0.8
0.4 0.3 0.3 0.3 0.4 0.5 0.5 0.50.5 0.50.2
0.2 0.2 0.2 0.30.3 0.3 0.3
0.3 0.30.2
0.2 0.3 0.20.3
0.3 0.3 0.30.4 0.4
0.2 0.2 0.2 0.20.2
0.2 0.2 0.20.2 0.2
0
1
2
3
4
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2016 2017 2018
Other Schlumberger
Eurasia Drilling Patterson-UTI
Helmerich & Payne Nabors
Stimulation purchasesUSD billion
2018-2021CAGR: 11%
0
15
30
45
60
2014 2015 2016 2017 2018 2019 2020 2021 2022
2019/2018 CAGR18-21
Land rigs 17.4% 10.8%
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Weatherford faces choppy market as it nears land rig divestment
October 2, 2018
In the 2017 annual call, Weatherford indicated the company is nearing resolution of its plan to sell its land drillingrig fleet. The sale is part of the company’s strategy to reduce its long-term debt of $7.5 billion by divesting non-core business. However, a challenging market outlook weighs down any chance to get the desired price for thefleet and the attractiveness of the fleet on offer is worth considering in relation to any news about the deal.
Figure 1 shows land rig revenues for the top 10 land drillers in 2016 and 2017 split by which geographic marketthey are primarily exposed to – red indicating North America and blue indicating the rest of the world. Drillingspecialists Nabors, Helmerich & Payne and Eurasia Drilling represent the largest independent drilling contractors,while more general service companies such as Weatherford and Schlumberger represent medium-largecontractors. Altogether, the top 10 companies account for a third of the global market.
North American shale is affected by changes in the oil price to a greater degree than conventional onshoreelsewhere in the world. This is evident where contractors primarily exposed to the North American market reporteddeclining market shares towards the third quarter of 2016 when shale bottomed out and increasing market sharesin 2017 as activity started to pick up again.
Metrics Middle East
Rig Category 2014 2015 2016 2017 2018 2019 2020 2021 Country 2014 2015 2016 2017 2018 2019 2020 2021
Floater 1 2 0 1 1 1 1 1 Saudi Arabia 1143 1233 1184 1284 1312 1331 1414 1484
Jackup 111 115 101 94 94 95 100 111 Oman 1090 1114 1053 986 991 1061 1021 911
Land 471 484 463 465 507 499 477 483 Kuwait 597 622 593 717 752 607 604 572
Iran 354 339 310 268 245 199 208 248
UAE 315 263 271 298 274 208 176 206
Iraq 299 154 142 116 181 188 141 155
Qatar 121 98 92 84 108 108 117 107
Bahrain 134 66 36 65 73 72 64 56
Turkey 190 68 58 64 38 31 20 33
Yemen 2 0 0 0 0 16 120 38
Other 19 8 8 7 8 3 2 4 Other 22 29 20 34 20 18 33 48
Total 602 609 572 566 610 597 582 598 Total 4,267 3,986 3,759 3,916 3,994 3,839 3,918 3,858
Rig demand (years) Wells splitt by Country (#)
0
100
200
300
400
500
600
700
800
2014 2015 2016 2017 2018 2019 2020 2021
Other Land
Jackup Floater
Historical Forecast
Rig
dem
and (
year
s)
Wel
ls s
plit
t by
County
(#
)
4
0
1,000
2,000
3,000
4,000
5,000
6,000
2014 2015 2016 2017 2018 2019 2020 2021
Other
Yemen
Turkey
Bahrain
Qatar
Iraq
UAE
Iran
Kuwait
Oman
Saudi Arabia
Historical Forecast
Note: Looking 100% lisence cost for operator, excluding internal costSource: Rystad Energy DCube28-09-2018
Sixth Guyana discovery creates hope for offshore suppliers in Latin America
January 10, 2018
ExxonMobil and its partners in the prolific Starbroek block offshore Guyana have kicked off the new year with another impressive oil discovery – their sixth in succession – which bodes well for an oilfield services industry that is champing at the bit to get back to work.
The US supermajor announced on January 5 that the “Ranger-1 well encountered 230 feet of high-quality oil bearing reservoir”, complementing the five previous discoveries at Liza, Liza Deep, Payara, Snoek and Turbot. ExxonMobil, along with block partners Hess and CNOOC Nexen, now estimate that the gross recoverable resources for the Starbroek block stand at 3.2 billion boe.
These discoveries, made over the last three years, represent vast opportunities for contractors. Including the USD 4.4 billion Liza phase 1 project, which is currently under development, all six of the discoveries could translate into USD 15 billion for the services industry in the greenfield phase.
Subsea providers, FPSO leasing companies and fabrication yards will compete for the biggest prizes. The ambitious development plans will require at least three large FPSOs, where the next two units are projected to have processing capacity way beyond the 120,000 bbl/d listed for the first unit, the Liza Destiny FPSO. The discoveries have been made at water depths ranging from 1500 to 2700 meters, and across vast distances of up to 150 km between wells. Development of these resources will require extensive subsea infrastructure, involving 60 to 100 wells to be drilled and about 12 to 20 rig years to be consumed.
Guyana will present many opportunities for the services industry and for local business, representing good news for an offshore market that has had little to rejoice in recent years. The South American country is thereby projected to emerge as a serious upstream destination and rank among the 30 largest offshore nations in the 2020s. With the Pacora prospect to be drilled in the coming months, in addition to a Ranger appraisal well and further exploration in the Starbroek block, Guayana could even turn into the hottest offshore region in 2018.
Contacts
Audun Martinsen, VP Oilfield Service ResearchPhone: +47 24 00 42 [email protected]
David White, Marketing ManagerPhone: +47 24 00 42 [email protected]
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Project factsheets:• 5,000 projects with full
overview• Drilling programs and other
activity metrics• Oilfield service demand
Operator factsheets:• 500 E&P operators• Portfolio overview• Activity and spending plans
Continent factsheets:• Regional oilfield service market
overview• Regional market trends and
upstream trends driving the demand
Well Analytics is included with the WellCube subscription and is available as a stand-alone product