Strong growth forecast for MENA land drilling rig demand

Land drilling rig demand in the MENA region is forecast to rise to 680 rigs from 2025-2029, a 31% increase over 2020-2024, according to the latest edition of Westwood’s World Land Drilling Rig Market Forecast

Along with increased conventional oil drilling in places such as Algeria, Kuwait and Turkey, new opportunities are emerging in unconventional developments, led by projects in Saudi Arabia, such as the Jafurah unconventional gas development, and the United Arab Emirates.

Global land drilling demand set to rise

The report presents Westwood’s in-depth outlook for the global land drilling rig market over the 2025-2029 period, with global land drilling rig demand forecast to increase by 18% over the next five years compared to 2020-2024. It presents a broadly positive picture for the land rig market over the next five years, with continued strong activity in several key regions, including Asia, the Middle East and North America.

Rig demand is forecast to average 4,704 between 2025 and 2029, an increase of 18% on the previous five-year period. Global demand is forecast to be led by Asia Pacific (36%), with China continuing to be the largest country for rig demand. Eastern Europe, where demand is driven by Russia, follows at 27%, with North America third at 17%.

While North America has the largest fleet, this is chronically underutilised, with many rigs being cold stacked for multiple years. Operator consolidation, strict capital discipline and a drive to increase the production rate of each well drilled have fundamentally changed the US rig market, according to the report, meaning supply significantly outpaces demand. As a result, utilisation is expected to average just 33%, significantly below Asia Pacific (76%) and Eastern Europe & FSU (63%). This low utilisation is also expected to encourage rig contractors to relocate part of their fleets into other markets, a growing trend in the last couple of years.

72% of forecast rig demand is expected to come from just four countries: Canada, China, Russia and the USA, but they offer limited expansion opportunities. Westwood’s latest report identifies a number of countries offering major growth opportunities – including several that are progressing unconventional developments, offering an opportunity for rig contractors to relocate idled rigs in the USA into new markets. These markets include Argentina and Australia, along with the MENA region.