Companies look to comfortable ride downhole as innovation continues
A study by Smith Rea Energy Analysts shows that the market for downhole equipment and services on the NW European Continental Shelf should remain buoyant despite the general prevailing gloom over low oil price. First Break reports. With the oil industry in a state of disarray over the uncertain impact of a persistently low price of oil, there is something reassuring about the latest Offshore Business Special Report from UK-based Smith Rea Energy Analysts.* It forecasts that the downhole equipment and services market in the Northwest European Continental Shelf (NWECS) is 'likely to fare better than many other sectorsí of oil-related activity in the region. The report also offers an interesting insight into trends for companies involved in oilfield services. By the end of last year Smith Rea calculated that the offshore drilling and completion services market was worth around £1ñ£1.1 billion a year, of which offshore drilling services was around £700 million with the completions market estimated at some £300ñ£400 million per year. It should be noted that the report confines itself to services other than drilling contracting and hardware other than tubulars. Oilfield mud and cementing are also excluded.