The global oilfield service sector’s recovery from the deepest trough it has ever encountered is not going to happen overnight.
Not until 2025, 11 years after the last peak, are global service market revenues again likely to have made it back to the US$920 billion mark seen in 2014, according to Rystad Energy.
“This will be the longest slump faced by the oilfield service industry since the 1980s, with about US$2.3 trillion in revenues lost along the way,” says Audun Martinsen, Rystad Energy’s Head of Oilfield Service Research.
He added: “On the bright side, in only three years’ time, activity levels will be higher than they were in 2014, although the cost cuts achieved in the sector means spending levels will only be 80% of what was seen in that peak year.”