Industry must drill 670 000 wells to meet demand

From 2014 through 2020, the global oil and gas industry must drill over 670 000 wells in order to meet forecasts of oil and gas demand. This conclusion comes from a major research programme by Douglas-Westwood (DW).

DW’s ‘World Development Drilling & Production Forecast’, states that in 2013, oil and gas development wells drilled totalled over 79 000, however in 2020, well numbers will need to exceed 106 000. These well are necessary to meet global oil and gas demand, which is set to increase 17% by 2020.

Development wells

DW chairman, John Westwood, commented: “As the easiest-to-access oil and gas reserves deplete, each year we have to drill more and more wells for less and less production per well. Over the period, numbers of development wells drilled need to grow 35% to enable oil & gas production to meet an expected demand growth of 17%. This effect is most marked onshore where by 2020 we expect production to grow by 15%, whereas offshore production should grow at 21% due to developments in deepwater.”

Matt Cook, DW geologist, added: “In 2013, 113 deepwater oil and gas development wells were drilled but by 2018 this number should reach over 400; meanwhile production will grow from 6 million boe/d to 9.5 million boe/d.”

Norway

Each country faces a different situation. Commenting on Norway, DW’s Andy Jenkins explaine: “After several years of decline, oil production in Norway is expected to slightly increase by 2020. This will be led by improved recovery from existing fields and greenfield projects such as the Goliat and Johan Sverdrup fields. DW forecast gas production will increase to 1.95 million boe/d from 1.84 million boe/d off the back of substantial investment and a number of planned projects in the Barents Sea. Such redevelopments will see the number of well completions sit around the 200 mark into the 2020s.”

USA

Highlighting the US, senior analyst, Matt Loffman, commented: “Driven by onshore unconventional liquids production, the US has gained approximately 2 million b/d crude in addition to almost 0.5 million boe/d of gas in the past two years. As rigs are focused on oil-targeted wells in the future, onshore oil well completions are set for a 36% increase by 2020.”

Conclusion

Traditionally, productive regions are in decline and could face a number of differing futures. Shallow water oil production is struggling for growth, despite high levels of investment, while many ageing onshore regions require redevelopment and must turn to unconventionals in order to stand a chance of long term growth. However, global oil and gas supplies and accordingly the drilling industry will remain dominated by onshore activity, accounting for 97% of well completions and 71% of global output.

Adapted from press release by Katie Woodward

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/26022014/oil_and_gas_industry_must_drill_670000_wells/