Well Services Contractors Report 2015

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WELL SERVICES CONTRACTORS REPORT 2015
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4. Financial Data
Companies were asked to provide financial data relating to their activity on the UKCS in 2014. This information
does not include revenue from the design, manufacture and sale of well equipment.
4.1 Gross Revenue
Gross revenue for the UK well services contractor sector was $3.24 billion (£1.97 billion) in 2014, a one per cent
increase on the $3.2 billion gross revenue recorded in 2013. It is important to note that the list of survey respondents
who submitted financial information for this year’s report is not completely identical to the previous year.
When like-for-like financial information is compared, a 4.8 per cent increase is observed from 2013 to 2014.
Figure 1 shows the forecast gross revenue for 2014 was $3.29 billion, which is $0.05 billion more than the actual
recorded revenue. For 2015, the forecast gross revenue is $2.5 billion, a projected decrease of nearly 23 per cent.
Furthermore, the Well Services Contractor Forum members recognise that the actual revenue in 2015 could be
even lower. For the last three years, the forecast revenues have been very close to the recorded values.
Figure 1: UK Well Services Contractor Sector Gross Revenue
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2015 forecast
Number of Wells Drilled on the UKCS
Gross Revenue
Gross Revenue ($Billion) Gross Revenue (£Billion) Previous Year Forecast ($Billion)
Previous Year Forecast (£Billion) Wells Drilled
Source: Oil & Gas UK
The total number of wells drilled, including sidetracks, decreased by 3.7 per cent from 164 in 2013 to 158 in 20141.
Since 2010, the total number of wells drilled on the UKCS has decreased by 17.7 per cent. Despite this decline, the
revenue for the sector has remained consistently strong, with companies reporting activity in areas such as the
development and maintenance of existing wells. The forummembers forecast that the number of wells drilled will
fall significantly further in 2015 and, as such, they expect a large reduction in rig activity.
The fall in oil price that began in the last quarter of 2014 has not yet had a substantial impact on revenue.
A number of companies reported strong performance in early 2014 with demand reducing in quarter 4.
1 Oil & Gas UK’s Activity Survey 2015 is available to download at