Billions of pounds will go on well interventions this year as oil and gas companies seek to squeeze out as much value as possible from fields.
Research from business intelligence firm Rystad Energy shows spending on workovers is projected to jump by nearly 20% this year, and total $58 billion (£45bn).
And modelling from the group suggests this spike is just the start, as the focus on efficiency intensifies in the coming years.
Well interventions are a cost-effective means for oil and gas companies to extract additional resources from an existing hole, instead of drilling a new one.
By 2027 Rystad forecasts the intervention rate – how many oil and gas wells are worked over – to reach 17% – that translates to about 260,000 wells globally.
To boost production rather than drill new wells, operators are more likely to undertake intervention into mature assets that have been producing for more than five years, Rystad says, with relatively high production rates which are starting to show signs of decline
In the UK alone 91 offshore wells are likely to be worked over between 2023 and 2028, compared to 223 on the Norwegian side of the North Sea.
Jenny Feng, supply chain analyst, Rystad Energy, said: “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.”
A senior figure at the North Sea Transition Authority recently expressed his frustration at the lack of engagement from industry on managing wells.
Bill Cattanach told an industry event in May that “only a handful” of companies came back with pro-active plans to work on their wells, after the regulator “challenged” them to revamp or decommission their stock.
Recommended for you
