Global Drilling and Pricing to Increase in 2024
The Investment Growth Cycle Continues
Kimberlite’s most recent Drilling report reveals that global drilling activity is set to increase by 5.5% in 2024 driven by strong growth Offshore (up 13.4%) and International Land (up 9.6%) while NAM Land remains “flattish” at 0.5% growth.
NAM Land continues to increase production driven by increases in drilling, completion and production intensity, and efficiency allowing operators to “accomplish more with less”. Offshore and internationally, operators work to restore and expand production capacity to meet growing long-term demand.
Pricing, however, varies by region and segment. Drilling Services and Hydraulic Fracturing are poised to see prices decrease into 2024 for NAM Land by 2-3% while Offshore and International pricing is set to increase by 8-9%. By contrast, Formation Evaluation Services and Cementing Services are anticipated to increase by 2-5% into 2024 for NAM Land while Offshore and International pricing is set to increase by 6-8%.
Oil and gas demand will continue to increase over the next decade and additional investment will be required to meet the global demand. Current policy and regulatory environment support higher oil prices while capital discipline among the operators and OFS suppliers will maintain a sustainable and profitable environment for investors.
Kimberlite will continue to track the future expenditure plans among the operators worldwide and report updates. Feel free to reach out to discuss.