Onshore drilling market continues to surge, but OFS capacity constraints may limit future growth

As the WTI hovers above $100 and rig activity approaches year-end projections several months early, the onshore drilling market is on a noticeable upswing, according to Piper Sandler. However, Ian Macpherson, Equity Research Analyst at Piper Sandler, said that while shale activity is high right now, future production growth will be labored thanks to a number of factors, including capacity constraints within the oilfield services sector, supply chain pressure and inflation. Following his appearance on a panel session at the 2022 IADC Drilling Onshore Conference on 19 May, Mr Macpherson spoke with DC about Piper Sandler’s outlook on the market.