Rystad says 36 high-impact wells around the world will be drilled this year
Norwegian energy consultancy Rystad recently said that 36 high-impact wells globally will be drilled this year, the highest annual total since it began tracking the market in 2015. Rystad believes this will be a jump from the 27 high-impact wells drilled in 2023, with drillers hoping for a higher success rate.
Of the 36 potential high-impact wells, 13 are in Africa and 10 in Latin America, accounting for almost 64% of the global total. In addition, the exploration company will drill six high-impact wells in Asia, two high-impact wells each in the Middle East, Europe and North America, and one high-impact well in Oceania.
Of the 27 high-impact wells drilled in 2023, only eight achieved commercially recoverable production, a success rate of about 30%, well below the annual average of 42%. The high-impact wells discovered reserves of 1 billion barrels of oil equivalent, a significant drop from the 3.5 billion barrels of oil equivalent discovered in 2022.
Sharif, vice president of upstream research at Rystad, said: “While drilling results in 2023 have been disappointing, the exploration industry still believes that there will be a turnaround this year. Drilling companies are no longer prioritizing short-term returns, instead choosing to focus on oil and gas wells that meet the long-term vision. "
Rystad predicts that international oil companies will account for 44% (16 rigs) of high-impact rigs this year, and national oil companies will account for 22% (8 rigs) of high-impact rigs this year.
