Middle East Drilling Remains Strong Despite Low Oil Prices

The boom in US shale drilling in recent months has seen the country move to center stage in 2017 upstream spending plans (MEES, 3 February). But activity in the Middle East, the one region not to have seen a downturn over the past two years, remains robust.

Since the mid-2014 oil price collapse, upstream spending in the Middle East has remained relatively steady, in stark contrast to the rest of the world. Indeed, with cost reductions and improved efficiency oil firms have been able to renegotiate contracts enabling key GCC producers Saudi Arabia, Abu Dhabi, Kuwait and Oman to boost drilling to record or near-record levels (MEES, 27 January). (CONTINUED - 636 WORDS)


chart The Mideast Was The One Bright Spot For Global Drilling Last Year (% Of World* Rig Count)
table January Rig Count: Kuwait Ramps Up Drilling; Us Adds 17 Oil Rigs, Highest Since Oct 2015