Spending on oil and gas well intervention is projected to surpass $58 billion in 2023 amid E&P companies’ efforts to efficiently and cost-effectively increase output. According to research company Rystad Energy, this represents a 20% hike since last year, and is likely to be just the start of a multi-year spending surge. The research firm notes that of the $58 billion, up to $11 billion will be directed towards the wireline and perforating segment; investments in coiled tubing, water management and intervention tools will hit $20 billion; while intervention units and oilfield chemicals sectors will represent 35% of total intervention spending.
“As oil demand picks up in the second half of this year, operators will look to ramp up production from existing fields, and well interventions will be a vital piece of the puzzle. As a quick, efficient, and cost-effective method of maximizing existing resources, interventions are going to be a hot topic in the years to come,” Rystad Energy Supply Chain Analyst Jenny Feng explains.
Rather than drilling new wells, operators are turning to intervention techniques to unlock additional reserves. As such, the intervention market is set to grow exponentially, with Africa, alongside Asia and South America, expected to lead the 9% growth in onshore activities related to intervention in 2024.
By 2027, Rystad Energy expects the well intervention rate to reach 17%, with a total 260,000 wells progressing through the intervention process worldwide. Regarding highly attractive onshore markets for intervention, Algeria and Libya represent two of the top five markets set to add wells with exceptional intervention opportunities between 2023 and 2028. The countries will add 3,750 and 2,348 assets, respectively, during this period. Offshore, Nigeria and Angola represent two of the top five markets, with 106 and 44 assets likely to be involved in intervention during 2023 and 2028, respectively.