STRONG oil and gas demand and an accompanying price rise have helped revive a land drilling rig market devastated by the Covid-19 pandemic. But it is a slow recovery, and an uneven one, according to new research from consultant Westwood Global Energy. If land rig contracting lags the oil price rebound, that is due in large part to "operators [that] remain cautious and highly selective with the drilling campaigns that they progress", Westwood research analyst Todd Jensen notes. There is also the decision by Opec+ nations not to significantly boost their output despite rising demand-and despite pleas from US President Joe Biden and other world leaders to loosen the taps to help ease spiking energy prices. Opec so far is sticking to its agreed monthly production increases of 400,000 barrels per day until September 2022 when the restrictions are set to expire.
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