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South American drilling to peak this year

Inspenet.

August 5, 2022

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By: Franyi Sarmiento, Ph.D., Inspenet, August 5, 2022

According to reports from Rystad Energy, drilling and completion activity in South America is expected to peak this year after a significant slowdown in 2020 due to reduced global demand caused by the Covid-19 pandemic.

According to Rystad, the upturn is more pronounced for offshore wells, driven mainly by increased activity in Brazil and Guyana. With the overall recovery in drilling, South America is also regaining a global market share of new wells drilled, with the offshore sector being the most prominent.

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New wells drilled in South America in 2014 contributed to 8% of new drilling globally in the offshore sector and 4% onshore.

Activity has been on a downward trend since then following the drop in oil prices in late 2014 and the following year. Onshore drilling activity saw a sharp drop in 2016 before stabilizing, while offshore drilling activity experienced a slight decline.

This Petrobanca portal material was edited for clarity, style and length.

Source: https://petrobanca.com/la-perforacion-en-america-del-sur-alcanzara-su-punto-maximo-durante-2022/