16
Nov
2023
IADC Conference in Al Khobar highlights surging demand for drilling capacity in the Middle East
IADC Middle East Drilling conference was opened in Al Khobar on 14th November and was introduced by Jason McFarland, President, IADC and Andy Hendricks, Chairman, IADC and CEO, Patterson-UTI. HFI was pleased to be represented by Hugh Fraser.
The IADC conference was very well attended as high demand in the Middle East continues to drive the international rig count in 2024, with producers seeking to meet aggressive production targets.
In its most recent Wells and Production Outlook for 2023 - 2027, Westwood Global Energy Group is forecasting that an average of more than 50,000 wells per year will be drilled onshore globally in that time period, similar to the levels seen in 2022 and 2023. Average rig count is expected to rise by a small percentage, from 4,590 in 2023 to 4,780 by 2027.
Ben Wilby, Westwood Global Energy Group reports “Middle Eastern countries have been awarding multibillion dollar contracts at an unprecedented rate. There’s been numerous big contract awards in every quarter this year… It’s a market that’s really heating up and where everyone’s heading to at the moment’.
Although, transition is one of the key themes of the IADC event and is the one-word summarising analysts’ views on the global onshore drilling market as it heads to 2024, DNV - Oil & Gas Energy Transition Outlook 2023, forecasts that renewables are still just meeting increased demand, rather than replacing fossil fuels. Furthermore, in absolute terms, fossil fuel supply is still growing.
The EIC (Energy Industries Council) is also tracking over USD$650 billion energy projects in the GCC region with almost US$200 billion energy projects in the KSA alone. With the abundance of opportunities in KSA, HFI is very much looking forward to taking part in Energy Industries Council’s (EIC) KSA Roundtable in Dammam on 21st November.
Hugh Fraser International is committed to supporting the energy sector to succeed in the vibrant GCC region whether through joint ventures, acquisition, licensing or in-region business establishments and through the full life cycle of ventures to success exits and divestments.
