Ihs Energy Group News

Exploration and delineation drilling in Asia last year jumped 18 percent from 1999 with China the most active center for drilling outside of North America, IHS Energy group said. About 1,050 exploration and delineation wells were spudded in the region in 2000, the equivalent of 37 percent of all such wells drilled outside of North America, the petroleum information services group said. A delineation well is spudded after an exploration well to define the size of a hydrocarbon find and its commercial feasibility. IHS said China accounted for about 800 onshore and offshore wells of which up to 30 percent might be wildcats. Drilling by indigenous Chinese operators accounted for 75 percent of the completions.

World drilling activity for oil and gas fell 24 percent in 1999 from 1998, but levels should bounce back in 2000, IHS Energy Group said. "In 2000, I expect levels to reach at least those of 1998," said Ian Cross, Asia director for IHS, who produced an IHS report on world drilling activity in 1999. "Some areas in 2000 will be slow to catch up. I think the Far East will be one of them. There is less money going into this region," he said. IHS said it estimated 7,433 exploration and delineation wells were completed in 1999, compared with around 9,800 in 1998. Exact figures for Russia, onshore China and India were not available, IHS said.