Well Services Report 2014

WELL SERVICESCONTRACTORSREPORT2014

4.3. Capital Investment andNewTechnologySpend Capital investment by the UK well services contractor sector was at $212.5 million (£136 million) in 2013, a 14.2 per cent increase on the reported 2012 figure ($186million). This is the highest level of capital investment from the sector since 2008. Even excluding financial data from the additional companies participating in this year’s report, total capital investment increased by 9.7 per cent in 2013. This increase reflects the record levels of investment in 2013 of £14.4 billion ($22.5 billion) in new and brownfield developments on theUKCS 4 . Spend on new technology was at $57million (£36.5million) in 2013, accounting for 26.8 per cent of the total capital investment. Whilst still representing a significant proportion of capital investment, this figure signifies a decrease from 41.2 per cent in 2012 and couldbe the result of the challenges in encouraging the uptake of new technologies.

Theamount of capital investment is forecast todrop to$162million in2014.

Figure3: Total Capital Investment andSpendonNewTechnology

Total Capital Spend

NewTechnologySpend

Previous Year Forecast: Capital

Previous Year Forecast:NewTechnology

400

NewTechnologyasPercentageof Capital

70%

350

60%

300

50%

250

40%

200

$Million

30%

150

20%

100

NewTechnology asPercentageof Capital

10%

50

0

0%

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Source:Oil &GasUK

2014Forecast

Source:Oil&GasUK

4 Oil&GasUK’sActivity Survey2014 is available todownloadatwww.oilandgasuk.co.uk/forecasts.cfm

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