GLG Network Survey: Drilling Market Overview II

SURVEY DETAILS

TARGET POPULATION

GLG interviewed 65 senior executives who discussed their drilling activity and contractual impact in the last 12 months, impact of COVID-19 and their projections for the short and medium term. The initial wave of this survey was conducted in March 2021.

What will you learn from this survey?

• This survey revisited topics explored in the first wave of the Drilling Market Overview Tracker, providing a wave-by-wave outlook on the industry.
• The research investigated the impact of COVID-19 on the drilling market and respondents’ projections for the short and medium term.
• Lastly, respondents commented on initiatives taken to mitigate client pricing pressures and factors they believe will affect their activity levels the most for the next years.

Examples of findings:

• In August 2021, 38% of the respondents stated that the overall drilling activity has decreased in the last 12 months, compared to 81% reported back in March 2021.
• 22% of the experts mentioned that the rig rates have increased by at least 5% in the last 12 months, up by 8% from March 2021.
• In August 2021, more than half of our experts (52%) stated that their companies have terminated office/base personnel as a result of the COVID-19 pandemic, up by 6% from March 2021.

DELIVERABLES

The GLG Surveys team drafted the questionnaire with the support of GLG Network Member, Roger Hodgson, former Commercial and Marketing Director at Weatherford Drilling International.

• 1 x Individual responses (“raw data”) in Excel.
• 1 x PPT report with aggregated data.
• Executive summary with key takeaways and highlights from the raw data.

SAMPLE QUESTIONS

• You mentioned that activity has reduced in the last 12 months. What factors have caused this change?
• Has your retiring/scrapping of assets been affected in the past 12 months?
• Do you think that the OPEC/OPEC+ agreements and the recent production increases, since the beginning of this year, have had an impact on your drilling activity?
• How do you think that COVID-19 (and recent variants) will affect your operations in H2 2021 vs H2 2020?
• Were your operations contractual impacted by the COVID-19 pandemic?
• Do you think that the COVID-19 pandemic will have/has had a permanent negative impact on your drilling operations?
• How do you now see the capital expenditure budget for 2021 vs 2020 for organisations in your industry?
• Which factors do you believe will most affect your activity levels over the next 1 to 2 years?

ACCESS

This survey is available to subscribers of the Energy and Industrials (EI) sector (Limited subscriptions and above). This offer includes the raw data file and a high-level presentation through PowerPoint. Please contact your GLG representative for details on your firm’s access.

Request other available and upcoming Network Surveys within the sector:

• GLG Tracker: Airport Ground Handling III – New!
  • Third wave to follow the second wave conducted in February 2021 and first wave in June 2020. 50 current executives at ground handling operators, airlines and airport operators in the USA, UK, France and Germany discussed the latest trends in the market and the impact of COVID-19.
  • Questionnaire was drafted by Richard van Bruygom, former Head of Strategy, EAS at Etihad Airways, former CEO, Americas at WFS and former President at Swissport.

• Coal Phase-Out
  • 70 senior executives working at power plants and utility companies in Europe and North America provided their views on the organisational, investment and market implications of the coal phase-out.
  • Questionnaire was drafted by Markus Hatwig, former Head of Group Strategy for the Vattenfall Group.

• E-Mobility – New! 
  • 95 senior executives from the Oil & Gas industry and Automotive industry were interviewed on the topic of e-mobility and electric vehicles charging infrastructure. The survey discussed topics such as the impact EVs will have on Oil and Gas as an industry, in addition to questions around the current state of the EV industry in light of the COVID-19 pandemic.
  • Questionnaire was drafted by Anders Rudlang, CTO at Electric Freeway.

• Petrochemical
  • 60 C-level executives working in the petrochemical industry discussed the COVID-19 impact on the sector and provided insights into its performance in the first half of 2021. The research also investigated the current demand issues and prediction for the rest of the year.
  • Questionnaire was drafted by Paul Hodges, Chairman at International eChem. Data released in July 2021.

• Testing, Inspection and Certification – New!
  • 70 senior executives working at Testing, Inspection and Certification companies within the US and Europe commented on the future of the industry and projected growth as well as the impact of COVID-19 and the disruption in terms of postponements and cancellations.
  • Questionnaire was drafted by Emmanuel-Jean Petit, former CEO at Apave International.

DISCLAIMER:

Please be advised that GLG Network Surveys operate differently than traditional GLG consultations, surveys, teleconferences, etc. and it is advisable that you consult with your firm’s legal and/or compliance department to review your use of the product and the payment for such work under your current subscription.

By downloading this document and/or participating in the Network Survey, you understand and agree that the information and material provided by GLG, including survey results and survey proposal information, is provided for your own insight and informational purposes only. You further acknowledge and agree that this is a Network Survey for multiple GLG clients, and the results will be provided to all GLG clients that agree to participate in the Network Survey and GLG clients that agree to purchase the Survey results in the future. All survey results do not constitute investment advice or a recommendation. In using this Survey, you agree to hold Gerson Lehrman Group and the Survey respondents harmless and free of all liability as a result of your use of this Network Survey, other than liability resulting from the gross negligence or wilful misconduct of the protected party. You otherwise agree to be bound by Gerson Lehrman Group’s Usage Policies in your interactions with Gerson Lehrman Group and your receipt of services. These Survey results are for are for client’s own use and client shall not redistribute, disseminate, publish, or display the same, in whole or in part, to any third parties or publicly without the prior written permission of Gerson Lehrman Group, except explicitly set forth in your agreement with GLG. This survey will be double-blinded to both client and respondent. GLG reserves the right to restrict the number of clients that can pre-commit access. These Network Surveys are priced outside of standard GLG subscriptions but at a substantially reduced price to commissioning a fully proprietary GLG Network Survey. Upon finding these terms acceptable, please send an affirmative confirmation via email, which GLG will file in its records. Once confirmed, please note that the Client’s agreement to purchase the Network Survey is a legally binding and irrevocable commitment. If the survey is not included within your subscription, GLG will invoice Client for the fees due for the Network Survey. Please note that some respondents may not be Network Members, and the Terms and Conditions of Network Membership would not apply to such respondents and detailed records for them will not be available aside from the information that GLG captures in the Network Survey.