Intervention Services Poised to Grow in 2017
Operators report plans to increase expenditures for intervention services in 2017.
A recent study conducted by Kimberlite Oilfield Research based on interviews with 244 operators worldwide reveals that:
Operators plan to increase expenditures for intervention services worldwide
Approximately 18% of wells will require intervention services in the next 12 months
Deferred maintenance by operators during the past two years has resulted in a backlog of wells requiring investment and intervention services.
Operator sentiment is above 50 for all major geographic segments evaluated worldwide.
Offshore operators plan to decrease spending for drilling of new wells in 2017 versus 2016 and international land operators plan to keep expenditures for drilling of new wells in 2017 similar to 2016. Both groups, however, report plans to increase spending in 2017 for intervention services reflecting the economic attractiveness associated with reworking existing wells to restore production versus drilling new wells.
The backlog of wells requiring intervention is reported to be higher in Africa, Latin America and Asia Pac. North America operator