The US onshore market is set for a period of strong growth with spending totalling $554billion expected through 2022, according to a new report from an energy consultancy.
Westwood Global Energy Group also said the rig count was becoming a less valuable indicator of a basin’s performance.
In its US drilling and completion market forecast for 2018-2022, Westwood said 66% of the $554billion would be spent on completions and 34% on drilling.
Over the period, it expects a 9% annual growth rate in rig counts.
The report focused on expenditure forecasts for six unconventional oil and gas plays onshore US.
Westwood said the sector had suffered a 79% reduction in drilling expenditure between 2014 and 2016.
Westwood said the figures in its report were based on an assessment of future oil prices that sees a gradual upwards increase within the $50-60 per barrel range through to the end of the decade, before climbing to $68 in 2022.
Steve Robertson, head of OFS research at Westwood Global, said: “It’s time to re-think how we measure OFS industry activity in North America.
“This report shows that the rig count is becoming less relevant and where we should focus our attention is well completions.
“The volume of data available is vast, millions of wells, and the ability to combine in-depth data with powerful analytics tools provided by Energent has been an exciting and insightful process for our team.
“The nature of well completions has seen some considerable development in recent years and we continue to track the market and advise our clients with keen interest and unique insights.”