‘World Land Drilling Rig Market Forecast’ unveils five-year outlook for land rigs

ORA 5 sept land drilling rig Latest analysis from Westwood Global Energy Group (Westwood), the specialist energy market research and consultancy firm, has revealed a healthy recovery roadmap for the global land rig market, driven by higher commodity pricing and mounting pressures around energy security

Westwood expects many regions to recover from the dramatic global downturn throughout 2020 better than previously expected. In 2020, levels reached a low of c.39,000 wells drilled onshore globally, but activity in 2022 is expected to reach 49,600 before climbing to c.60,000 wells in 2026.

The increase in drilling demand combined with higher commodity pricing has seen land drilling rig dayrates increase in a number of regions. The US in particular has seen dayrates increase by c. 25% over 2022, with average dayrates for 2Q 2022 reaching c. US$26,500. Other regions such as the Middle East have more stable pricing due to longer term …