Oilfield services spending for onshore shale will grow as a result of OPEC’s production cut, but offshore suppliers will struggle in 2017. The Organization of Petroleum Exporting Countries’ (OPEC) decision to cut production by 1.2 million barrels per day of oil will result in as much as $15 billion in increased spending to flow into the non-OPEC shale market in 2017. Non-OPEC shale well services firms will be best positioned for this growth, with an estimated $10 billion of additional spending, according to recent analysis by Rystad Energy. Assuming 10,000 wells are drilled and completed in 2017 in shale plays, drilling contractors stand to benefit from an additional $2.5 billion in spending. However, Rystad expects offshore suppliers to continue to struggle in 2017, with the overall offshore market to be reduced by $19 billion in 2017 versus 2016. Engineering, procurement, construction and installation and subsea purchases will face the […]