Over 670,000 new oil wells will need to be drilled in order to meet global energy demands according to a report published by energy business research group Douglas-Westwood (DW).
The report states that global demand will increase by 17% by 2020 and the new wells are needed to meet this rise in consumption.
DW’s ‘World Development Drilling & Production Forecast’ published today, states that in 2013 oil & gas development wells drilled totalled over 79,000, but in 2020 well numbers will need to exceed 106,000.
“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%,” said DW chairman, John Westwood. “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, the DW geologist who leads the extensive drilling & production believes that advances in deepwater technology will help to bolster production levels in the coming years.
“In 2013, 113 deepwater oil & gas development wells were drilled but by 2018 this number should reach over 400; meanwhile production will grow from 6 mboe/d to 9.5 mboe/d,” he said.
Traditionally productive regions are in decline and face a variety of 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, as North America has, in order to stand a chance of long term growth. However, global oil & gas supplies and accordingly the drilling industry will remain dominated by onshore activity, accounting for 97% of well completions and 71% of global output.
