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Douglas Westwood : World Oilfield Equipment Market – Onshore Set to Recover Expenditure Share

10/07/2016 | 11:43am EDT

Douglas-Westwood's (DW) Q3 World Oilfield Equipment Market Forecast highlights the strong growth potential of the onshore oilfield equipment (OFE) sector through the forecast period (2016-2020). From lows of $61 billion (bn) in 2016, global onshore expenditure is set to increase at a rate of 8% year-on-year through the forecast period to $83bn by 2020 - driven by a recovery in North American shale drilling.

Onshore growth will be offset by developments offshore, where the story is less promising. Offshore OFE expenditure is expected to decline from $67bn to $43bn between 2016 and 2020, primarily due to a significant drop in project sanctioning and an oversupply of drilling units. The decline in offshore expenditure will lead to a flat global profile through to 2020 for total OFE expenditure, which is set to total $125bn in 2020, down from $128bn in 2016.

Declining offshore spend coupled with increasing onshore activity will result in onshore recovering this share of expenditure from lows of 48% in 2016 to 66% in 2020 - higher than at any point in DW's hindcast. Due to the recovery in onshore OFE expenditure, DW expects equipment lines associated with onshore drilling activity to exhibit strong growth profiles through the forecast period - Conveyancing Tools, Downhole Drilling Equipment and Tubular Goods will show particularly strong growth profiles, increasing 10%, 13% and 13% year-on-year, respectively.

DW's analysis has highlighted key growth sectors onshore, providing much-needed opportunities for manufacturers in a dampened market.

World Oilfield Equipment Market - Onshore Set to Recover Expenditure Share

Douglas-Westwood's (DW) quarterly publication the World Oilfield Equipment Market Forecast 2016-2020 provides unique insight into the global oilfield equipment (OFE) market. The underlying data and models have been fully updated for the latest Q3 2016 report, derived from DW's proprietary 'Drilling & Production Database', an in-house information system exclusive to DW and provides unique insight into the sector. The outputs include historic, current and future expenditure forecasts for 60 diverse oilfield equipment lines including blowout preventers, frac equipment, compressors, pumps, production trees and ESPs.

Douglas Westwood Ltd. published this content on 07 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 07 October 2016 15:43:01 UTC.


© Publicnow 2016
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