In a bid to promote drilling efficiency, oil and gas companies are projected to spend $58 billion on well intervention, says Rystad Energy.
In a recent press release, energy research company, Rystad highlighted the fact that oil and gas companies around the world are seeking efficient and cost-effective ways of increasing their output.
So, instead of drilling new oil and gas wells, they will spend an average of $58 billion to get additional oil and gas from existing wells this year alone.
Rystad Energy explains that to boost production rather than drill new wells, operators are more likely to undertake intervention into mature assets that have been producing for more than five years, with relatively high production rates which are starting to show signs of decline.
A part of the press release stated:
- “The intervention rate – how many oil and gas wells go through the intervention process – is forecast to reach 17% in 2027. This would total about 260,000 wells globally.
- “More than $11 billion of the total expenditure will be directed to the wireline and perforating segment, while together, intervention units and oilfield chemicals sectors will represent 35%.
- “In addition, the sum of the investments in coiled tubing, water management, and intervention tools is expected to close in 2023 surpassing $20 billion.”
More Insights
According to Rystad Energy, Africa is one of the continents that will lead a 9% growth in intervention activities in onshore oil and gas interventions.
Others are Asia and South America. Supply chain analyst at Rystad Energy, Jenny Feng wrote:
- “As oil demand picks up in the second half of this year, operators will look to ramp up production from existing fields, and well interventions will be a vital piece of the puzzle.
- “As a quick, efficient, and cost-effective method of maximizing existing resources, interventions are going to be a hot topic in the years to come.”
Meanwhile, Rystad Energy highlights Nigeria as one of the top countries with intervention potential in offshore assets.
According to Rystad data, Nigeria’s intervention well count between 2023 and 2028, is 106 wells with an average score of 3.8.
What you should know
In its October 2022 State of African Energy report, the African Energy Chamber highlighted the legacy versus new oil producers’ narrative, stating that Libya, Chad, and Egypt are expected to become the biggest crude oil production gainers between 2022 to 2030, while Nigeria, Ghana, Algeria, and South Sudan could see a reduction in operations.
YES, AND ENVIRONMENTAL INTERVENTIONS AS WELL, LIKE PRAGMATIC RECLAMATION OF THE OIL PRODUCING COASTAL COMMUNITIES. CHEERS TO US ALL.