Rystad forecasts long-term drilling activity decline will begin in 2025

The oil and gas industry has seen a strong post-pandemic comeback, with upstream CAPEX increasing by 50% since 2020, according to Rystad Energy. However, the firm estimates a decline in drilling activity over the long term, starting in 2025, said Reza Kazmi, Senior Analyst and Product Manager, Global Drilling and Wells Research. He attributes this decline to impacts that energy transition strategies will have on global oil demand. Speaking to DC from the 2023 IADC Advanced Rig Technology Conference in Amsterdam on 15 September, Mr Kazmi explains the specific factors behind the anticipated drilling activity decline and talks about how geothermal drilling and digitalization represent opportunities for the drilling industry to positively position themselves in a shifting landscape.