2021 has seen a promising recovery from the substantial market setbacks of 2020, both in the U.S. and globally. Although rig utilization is progressing, it is taking its time to close in on the high levels of utilization the market enjoyed pre-pandemic—and may never even get there.
According to a report from Westwood Global Energy Group, the U.S. rig utilization market is not predicted to return to 2019 levels of productivity over the forecast period. However, if E&P operators continue to focus on capital discipline, levels are expected to improve by 10% between 2020 and 2025.
In the recent Westwood webinar, “International Land Rigs: A Road to Recovery,” Arindam Das, head of consulting, and Ben Wilby, senior analyst, shared a report that explained the gradual growth the oil and gas industry is facing in the U.S. The growth rates in China and the Asia-Pacific region are expected to surpass those of the U.S. by 2025.
Combined, the Asia-Pacific, Eastern Europe and former Soviet Union (FSU), and North American regions will account for about 80% of oil rig demand by 2025, with Asia-Pacific leading, Eastern Europe and FSU in second place and North America in third.