Westwood Global Energy Group (WGEG) predicts to see stagnation in terms of dollar demand through to early next decade before signs of a recovery emerge.
This is due primarily to the marked oversupply of equipment. Most critically, the newbuild offshore rig market (comprising jackups, semisubmersibles, and drillships) is expected to continue to decline from a peak of US$24 billion in 2013 to just $4.2 billion by 2023.
In terms of growth rates, offshore MMO (maintenance and modification) looks to be the most promising sector, with a substantial and sustained recovery in expenditure likely to be seen through to 2023.
The latest data comes from Sectors, WGEG’s online analytics tool, which enables oilfield service (OFS) companies and operators as well as financial advisory firms, to review market potential and future hotspots of multiple service and equipment lines, plus drilling and production activity.
“The size and intricacy of companies operating within the oil and gas sector is changing. Thanks to recent and likely future M&A activity, OFS companies are now operating across a myriad of different sectors. Meanwhile, the second and third tier players are focusing more and more on niche markets,” says Gareth Hector, head of sales and marketing, Global Oilfield Services at WGEG.