Following the double whammy of the collapse in the oil price and the Covid-19 pandemic, exploration plans are being redrawn and the well count is expected to drop by as much as 35% on 2019 levels.
RigLogix has contacted a number of rig owners and operators and the consensus seems to be that it’s going to get worse before it gets better, especially if current conditions persist.
More oil and gas were discovered in stratigraphic traps than any other trap type in the last decade. Excelling in stratigraphic trap exploration is now the key to top quartile exploration performance.
Significant cost reductions have improved E&P cashflows and should drive increased offshore tendering activity in 2020. Pricing is expected to remain competitive, however, and contractors will need to remain focussed on profitability.