Introduction

Offshore drilling represents nearly 50% of offshore capex within the global E&P business. This report has been prepared in recognition of drilling's importance to the turnover of almost every oil and gas company and service provider working in the sector. Drilling has a fundamental role in the location and extraction of all the oil and gas production that can be realized from offshore locations.

Scope of this research

• Insight on the drilling services market in Europe and the FSU and its evolution in the current market environment.
• Forecasts of the number of wells to be drilled and the likely level of expenditure required to fulfil predicted levels of activity.
• An overview of drilling equipment and processes and a description of how the associated technologies are costed and allocated to various well types.
• Analysis of individual offshore areas and their role in the future growth of the drilling sector and rig market.

Research and analysis highlights

From an estimated $51 billion between 2005 and 2009, drilling expenditure in Western Europe is forecast to grow slightly to $54 billion over the five years from 2010 to 2014. Comprising 17% of global spending in 2009, this percentage is expected to decline to around 13% by 2014 as activity reduces, compared to the large deep water regions.

Eastern Europe & the FSU attract just 3% of global offshore drilling spending due to the region's relatively small offshore area and low potential outside the Caspian Sea and Black Seas, and offshore Sakhalin Island and the Arctic waters of Russia.

Over the last five years it is estimated that $57 billion was spent on shallow water drilling in Europe and the FSU, representing 95% of all drilling expenditure. Meanwhile just $3 billion was spent on deep water drilling.

Key reasons to purchase this research

• Develop a drilling investment strategy targeted around Exploration and Production hotspots.
• Evaluate likely technology driven growth opportunities created by the medium term evolution of the drilling sector.
• Analyse how drilling spending patterns will vary between different technology sectors and geographies over a five-year forecast period.