This unique report provides an essential and complete overview of the technology and future prospects for the offshore drilling business. It reviews and forecasts the world market by region and type of activity by the number of wells being drilled and the investment capital that will be required to fulfill this activity.
 
 Offshore technology
 
 The report analyses the current state of the drilling industry. Suitable for readers of all backgrounds it presents a detailed historical and current review of offshore drilling technology, discussing traditional and new techniques as well as the commercial impact these may have on the development of the drilling industry over the next few years.
 
 Global drilling:
 
 Drilling is forecast to rise 7% over the period 2009-2013 compared with the period 2004-2008, despite a sharp decline in 2009. Approximately 18,300 offshore wells were drilled globally over the last five years. From 2000 to 2003 numbers declined but picked up in 2004 as prices rose with activity and the oil price, reaching a peak in 2007, before dropping slightly in 2008. The forecast for 2009-2013 is of a decline in 2009, followed by consistently rising numbers including a sharp jump in 2011, to reach 19,600 over the five year period. Well drilling numbers and types are discussed for every country in the world with offshore projects and potential projects. The regional drilling forecasts are presented in table and chart form in a clear and accessible format.
 
 Spends by sector:
 
 In 2008 rigs are estimated to have represented an average of 37% of total well costs in that year, much the same as 2007, of which 42% was spent on semi-submersibles, 35% on jackups and somewhat less on the remainder. A little under 40% of rig costs were used to drill deep water wells, unchanged from 2007 after a 25% jump in that year.
 
 Global rig spends had been increasing dramatically since 2004 both as a proportion of well costs related to deep water drilling increases (where the rig costs command a greater proportion of total costs) and due to inflationary effects. However spends stabilised in 2008 and are expected to decline in 2009, followed by a slow and then faster resurgence from 2010.
 
 Formulated costs for different types of well are detailed in the report, subdivided into the rig, engineering, geoscience and support sectors, then further subdivided into individual cost elements for key offshore drilling services over the period.
 
 Extensive forecasts:
 
 Spending is forecast to rise 32% over the period 2009-2013 compared with 2004-2008 despite reduced spending in 2009 and 2010. Approximately $278bn was spent globally over the last five years on offshore drilling. In 2002 and 2003 amounts were flat but began to pick up in 2004 as prices rose with activity and the oil price. They surged in 2005, 2006 and 2007 but rose only slightly in 2008. The forecast for 2009-2013 is of lower spends in the first two years followed by a return to previous levels of growth, to reach around $367bn over the five year period. In view of the smaller rise in drilling numbers, much of this spending can be ascribed to increased costs both as a result of more expensive well types and general inflation in later years.
 
 ‘The World Offshore Drilling Spend Forecast 2009-2013’ provides essential information for decision-makers in oil and gas companies and in the contracting and supply industries, and is an invaluable asset for government departments and financial institutions involved in strategy formulation and valuation.
 
 An acclaimed series:
 
 ‘The World Offshore Drilling Spend Forecast 2009-2013’ is the latest in a series of business studies used by organisations over 50 countries. These include oil majors, investment banks, contractors & governments.
 
 Document Contents:
 
 - Summary and Conclusions – An Executive overview of the study including regional drilling summary, sector spend summary and regional spend summary
 
 - The Foundations of Offshore Drilling – An introduction including definitions, offshore well history, rig developments through the last 50 years and market drivers
 
 - Drilling Technology Review – An overview of the technological developments that have impacted and will impact the offshore drilling business, including review of: exploration, appraisal & development wells; rotary drilling procedures; all the services used on a well
 
 - Regional Drilling Review – A region by region examination of major offshore drilling projects globally; actual and potential, with summaries of shallow & deepwater drilling; exploratory & development drilling with comparisons of each
 
 - Drilling Spend by Sector and Technology – Describing the expenditure model, price movements, drilling days, rig costs, engineering costs (drilling fluids, bits, directional & LWD service rates, casing & cementing, rents & materials, general engineering services and testing, completion or abandonment) geoscience costs (mud and electric logging and other geoscience services), support costs; all subdivided into shallow and deepwater sector spends
 
 - Regional Spending Review – Capital expenditure forecasts for offshore drilling over the period 2009-2013 including historic estimates from the period 2004-2008. Results are presented by region and by sector (global, shallow & deep exploratory, shallow & deep development)
 
 - Improved Drilling Technologies – A review of the newest drilling techniques, procedures, materials and tools and how they are developing.

1 Summary and Conclusions
1.1 Introduction
1.2 Regional drilling summary
1.3 Sector spend summary
1.4 Regional spend summary
1.5 Main results and conclusions

2 The Foundations of Offshore Drilling

3 Drilling Technology Review
3.1 Introduction
3.2 Exploration wells
3.3 Appraisal wells
3.4 Development wells
3.5 Rotary drilling procedures
3.6 Rotary drilling mechanics
3.7 Rig services provided by the drilling contractor
3.8 Geoscience services
3.9 Engineering services
3.10 Support services

4 Regional Drilling Review
4.1 Introduction
4.2 Summary of definitions
4.3 North America
4.4 Latin America
4.5 Western Europe
4.6 Eastern Europe & The FSU
4.7 Africa
4.8 Middle East
4.9 Asia
4.10 Australasia
4.11 Global regional summary
4.12 Global category summary
4.13 Shallow exploratory summary
4.14 Deep exploratory summary
4.15 Shallow development summary
4.16 Deep Development Summary
4.17 Shallow vs. Deep Summary
4.18 Exploratory vs. Development Summary

5 Drilling Spend by Sector and Technology
5.1 The expenditure model
5.2 Service cost movements
5.3 Drilling days
5.4 Rig costs
5.5 Engineering costs
5.6 Geoscience costs
5.7 Support costs
5.8 Details of shallow water sector spend
5.9 Details of deep water sector spend

6 Regional Spending Review
6.1 Introduction
6.2 North America
6.3 Latin America
6.4 Western Europe
6.5 Eastern Europe & The FSU
6.6 Africa
6.7 The Middle East
6.8 Asia
6.9 Australasia
6.10 Global regional summary
6.11 Global category summary
6.12 Shallow exploratory summary
6.13 Deep exploratory summary
6.14 Shallow development summary
6.15 Deep development summary
6.16 Shallow vs. Deep summary
6.17 Exploratory vs. Development summary

7 Improving Drilling Technologies
7.1 Introduction
7.2 Evolution of techniques
7.3 The longer term future
7.4 Conclusion

Figures:

Figure 1: OFFSHORE WELLS: Category drilling summary 1994 to 2013
Figure 2: OFFSHORE WELLS: Sector spend summary 2004 to 2013
Figure 3: OFFSHORE WELLS: Regional spend summary 2004 to 2013
Figure 4: OFFSHORE RIGS: At end 2008 available in the market
Figure 5: Pair of rigs on the Hibernia concrete platform
Figure 6: Drilling tender alongside a TLP
Figure 7: Drilling barge on Lake Erie
Figure 8: The Galaxy I cantilever jackup built 1991
Figure 9: The Glomar Jack Ryan drillship built in 2000
Figure 10: The deck and derrick of a drillship
Figure 11: The Transocean Marianas built in 1998
Figure 12: The riser above sea level in a semi-submersible
Figure 13: DEEP WATER: Drilling in increased water depths
Figure 14: OFFSHORE RIGS: At end 2008 under construction or on order
Figure 15: OFFSHORE RIGS: Numbers and utilisation rates
Figure 16: The substructure and derrick of an old semi-submersible rig
Figure 17: Diagram of a drilling riser
Figure 18: A kelly in a kelly bushing in the drill floor, drilling ahead
Figure 19: Shale-shakers on a drillship
Figure 20: Drilling hands on the drill floor in a non-automated environment
Figure 21: A helicopter leaving a helideck mounted at the stern of a drillship
Figure 22: A typical mud log screen shot
Figure 23: A core boxed for shipment after retrieval
Figure 24: Tri-cone milled, tri-cone insert, and black diamond PDC bits
Figure 25: LWD tool behind the bit
Figure 26: Hydraulic top drive
Figure 27: Typical casing programme in a medium depth well
Figure 28: Diagram of production casing
Figure 29: A blow-out preventer stack
Figure 30: A horse-drawn explosives cart used in the 19th century
Figure 31: A workboat operating with a semi-submersible
Figure 32: Notional cost breakdown for an exploration licence
Figure 33: Hypothetical cash flow for a development drilling project
Figure 34: ALL REGIONS – Well drilling forecast 2004 to 2013
Figure 35: NORTH AMERICA – Well drilling forecast 1994 to 2013
Figure 36: LATIN AMERICA – Well drilling forecast 1994 to 2013
Figure 37: CENTRAL AMERICA – Well drilling forecast 1994 to 2013
Figure 38: SOUTH AMERICA – Well drilling forecast 1994 to 2013
Figure 39: WESTERN EUROPE – Well drilling forecast 1994 to 2013
Figure 40: NORTH WEST EUROPE – Well drilling forecast 1994 to 2013
Figure 41: SOUTHERN EUROPE – Well drilling forecast 1994 to 2013
Figure 42: E. EUROPE & THE FSU – Well drilling forecast 1994 to 2013
Figure 43: AFRICA – Well drilling forecast 1994 to 2013
Figure 44: N. & NW. AFRICA – Well drilling forecast 1994 to 2013
Figure 45: WEST AFRICA – Well drilling forecast 1994 to 2013
Figure 46: SOUTH & EAST AFRICA – Well drilling forecast 1994 to 2013
Figure 47: MIDDLE EAST – Well drilling forecast 1994 to 2013
Figure 48: ASIA – Well drilling forecast 1994 to 2013
Figure 49: NORTH ASIA – Well drilling forecast 1994 to 2013
Figure 50: SOUTH ASIA – Well drilling forecast 1994 to 2013
Figure 51: SOUTH EAST ASIA – Well drilling forecast 1994 to 2014
Figure 52: AUSTRALASIA – Well drilling forecast 1994 to 2013
Figure 53: ALL WELLS – Well drilling forecast 2004 to 2013
Figure 54: ALL WELL CATEGORIES – Shares in 2008
Figure 55: WELL CATEGORIES – Well drilling forecast 2004 to 2013
Figure 56: SHALLOW EXP. – Well drilling forecast 2004 to 2013
Figure 57: DEEP EXP. – Well drilling forecast 2004 to 2013
Figure 58: SHALLOW DEVT. – Well drilling forecast 2004 to 2013
Figure 59: DEEP DEVT. – Well drilling forecast 2004 to 2013
Figure 60: SHALLOW vs. DEEP – Well drilling forecast 2004 to 2013
Figure 61: EXP. vs. DEVT. – Well drilling forecast 2004 to 2013
Figure 62: DRILLING SECTORS – Shares in 2008
Figure 63: DRILLING SECTORS – Shares forecast 2004 to 2013
Figure 64: INF(DEF)LATION – Price movements forecast 1994 to 2013
Figure 65: ALL WELLS/COSTS – Movements forecast 2004 to 2013
Figure 66: ALL WELLS – Rig spend forecast 2004 to 2013
Figure 67: ALL WELLS – Engineering spend forecast 2004 to 2013
Figure 68: ALL WELLS – Geoscience spend forecast 2004 to 2
Figure 69: ALL WELLS – Support spend forecast 2004 to 2013
Figure 70: REGIONAL DRILLING SPENDS – Shares in 2008
Figure 71: ALL REGIONS –Well spend forecast 2004 to 2013
Figure 72: NORTH AMERICA – Well spend forecast 2004 to 2013
Figure 73: LATIN AMERICA – Well spend forecast 2004 to 2013
Figure 74: WESTERN EUROPE – Well spend forecast 2004 to 2013
Figure 75: E. EUROPE & THE FSU – Well spend forecast 2004 to 2013
Figure 76: AFRICA – Well spend forecast 2004 to 2013
Figure 77: THE MIDDLE EAST – Well spend forecast 2004 to 2013
Figure 78: ASIA – Well spend forecast 2004 to 2013
Figure 79: AUSTRALASIA – Well spend forecast 2004 to 2013
Figure 80: ALL WELLS – Well spend forecast 2004 to 2013
Figure 81: ALL WELL CATEGORIES – Well spend forecast 2004 to 2013
Figure 82: SHALLOW EXP. – Well spend forecast 2004 to 2013
Figure 83: DEEP EXP. – Well spend forecast 2004 to 2013
Figure 84: SHALLOW DEVT. – Well spend forecast 2004 to 2013
Figure 85: DEEP DEVT. – Well spend forecast 2004 to 2013
Figure 86: SHALLOW vs. DEEP – Well spend forecast 2004 to 2013
Figure 87: EXP. vs. DEVT. – Well spend forecast 2004 to 2013
Figure 88: Diagram of the benefits of underbalanced drilling
Figure 89: A rotating control head
Figure 90: Dual gradient drilling with control head and subsea pump system
Figure 91: Riser-less drilling on the D/V Chikyu research vessel
Figure 92: Hybrid coiled tubing drilling rig, onshore Canada
Figure 93: Continuous circulation system (CCS)
Figure 94: Casing drilling rig with top drive
Figure 95: Processes in installing expandable casing
Figure 96: Artist’s impression of artificial buoyant seabed
Figure 97: Conceptual seabed drilling rig

Tables:

Table 1: ALL WELLS – Well spend forecast 2004 to 2013
Table 2: ALL WELLS – Well drilling forecast 2004 to 2013
Table 3: ALL WELL CATEGORIES – Well drilling forecast 2004 to 2013
Table 4: SHALLOW EXP. – Well drilling forecast 2004 to 2013
Table 5: DEEP EXP. – Well drilling forecast 2004 to 2013
Table 6: SHALLOW DEVT. – Well drilling forecast 2004 to 2013
Table 7: DEEP DEVT. – Well drilling forecast 2004 to 2013
Table 8: SHALLOW vs. DEEP – Well drilling forecast 2004 to 2013
Table 9: EXP. vs. DEVT. – Well drilling forecast 2004 to 2013
Table 10: RIGS – Market factors controlling utilisation rates 1999 to 2013
Table 11: RIGS – Maximum/minimum day rates by rig type 2004 to 2013
Table 12: SHALLOW SECTOR SPENDS – Forecast 2004 to 2013
Table 13: DEEP SECTOR SPENDS – Well spend forecast 2004 to 2013
Table 14: ALL SECTOR SPENDS – Well spend forecast 2004 to 2013
Table 15: DEPTH SECTOR SPENDS – Well spend forecast 2004 to 2013
Table 16: ALL WELLS – Well spend forecast 2004 to 2013
Table 17: SHALLOW EXP. – Well spend forecast 2004 to 2013
Table 18: DEEP EXP. – Well spend forecast 2004 to 2013
Table 19: SHALLOW DEVT. – Well spend forecast 2004 to 2013
Table 20: DEEP DEVT. – Well spend forecast 2004 to 2013
Table 21: ALL WELL CATEGORIES – Well spend forecast 2004 to 2013
Table 22: SHALLOW vs. DEEP – Well spend forecast 2004 to 2013
Table 23: EXP. vs. DEVT. – Well spend forecast 2004 to 2