Offshore Network’s latest Global Well Intervention Report delves into the highly-prosperous global market and analyses the growth of operators utilising well intervention practices as the focus across the industry is shifting towards end-of-life activities and reaching environmental targets.
Assessments issued by Rystad Energy suggest that 17% of the world’s wells will undergo intervention processes by 2027, accounting for 260,000 wells globally. Spending within this market has already seen a surge and is likely to amount to US$58bn by the end of 2023, representing a significant growth of 20% since 2022. Climate consciousness has played a predominant role aiding the growth as mounting pressure is building across the industry to limit environmental footprints, with global companies seeking to make intervention an integral pillar within their business strategies.
In November 2023, COP28 witnessed Saudi Arabia launch its landmark Oil and Gas Decarbonisation Charter (OGDC) wherein 50 companies who represent 40% of the global oil and gas market thus far have signed up to the global pact to speed up climate action initiatives and are committed to become net-zero by 2050. However, it is not just the call for fast environmental action that is driving the intervention market, but the global increase in energy demand is also playing a vital role. According to the International Energy Agency, annual oil demand is expected to grow from 285.7 mboe/d in 2021 to 351 mboe/d in 2045, with oil set to retain a 29% share in the energy mix.
Increasing production rates is still a major priority across the industry, and a factor that must be balanced with the growing need to minimise carbon footprints. Well intervention practices are proving a key avenue that companies across the globe are turning their heads to, from expediting resources from the more veteran regions like the North Sea and the Gulf of Mexico to introducing more of these practices to ‘newer’ regions such as the Middle East and West Africa.
