Egypt’s Oil and Gas Industry in 2021
The Baker Hughes Rig Counts are a crucial indicator for the oil & gas/drilling industry and all its stakeholders. The active rig count is a prime indicator for the demanded products needed for drilling & producing hydrocarbons. There is a significant connection between the number of rigs and the oil prices; as the oil prices increase, the rig count increases. However, it takes some time to see that correlation since producers wait to assess the market and ensure that prices will hold before they drill more rigs and vice versa.
As shown in the graph above, Egypt’s Oil Rig Count stands at 26.00 which is a step up from24.00 last month of July 2021. Furthermore, this is an increase of 23.81% from last year’s count at 21.00. Dating back to 2019, there was a peak in September with 29.00, followed by a peak in April 2020 with 28.00, and finally the peak in 2021, in July with 26.00, which is the highest it has been since the peak in April 2020.
As shown in the graph above, Egypt’s Oil Rig Count stands at 26.00 which is a step up from24.00 last month of July 2021. Furthermore, this is an increase of 23.81% from last year’s count at 21.00. Dating back to 2019, there was a peak in September with 29.00, followed by a peak in April 2020 with 28.00, and finally the peak in 2021, in July with 26.00, which is the highest it has been since the peak in April 2020.
As for Rig type, the graph below shows that the majority of rigs are Standby/Stacking at 46% followed by 29% Land Workover rigs. At 19% are Land Drilling rigs and finally Jock-up rigs at 6%.
Moreover, the recently (2018) Egyptian owned company, The Egyptian Drilling company (EDC) owns 53% of the onshore drilling market, and in the maintenance market it owns 36%, as for offshore drilling it owns 15%. Internationally, publications by Reuters during the month of August have revealed the recent addition of oil rigs in the United States. During the month of August in 2020, oil rigs were 244, compared to now; after the most recent increase by the US to become 491 rigs. The number increased significantly since its fall to 244 rigs during the week prior to August 14th 2020. There were a variety of purposes behind the installation of the multiple rigs. To further elaborate, two of the rigs were added specifically for oil and one was added for diverse reasons, while none were added for gas. Even though there was a slow growth in the oil rig count in the past months, as the main focus of drillers was on capital, yet this rise in rigs occurred despite that.
As of July 2021, the world rig count has reached 1380.0, this is actually a 4.15% increase compared to the previous number of rigs dating back to June 2021, which was 1325.0 . Egypt holds 26.0 of the rigs in that number, which deems Egypt a holder of 1.88% of the total rigs worldwide.
The oil market in Egypt is definitely an impactful one. It is unquestionable that the country holds a lot more potential and with companies in the oil field industry growing substantially, such as Tam Oilfield Services, with our Baker Hughes partnership, the oil and gas industry will keep on booming for years to come.
Sources:
Egypt Oil & Gas, Baker Hughes, Energy Egypt and Reuters
Links:
https://egyptoil-gas.com/news/us-firms-increase-oil-gas-rigs/
https://energyegypt.net/united-oil-gas-announces-spudding-of-asd-1x-exploration-well-in-egypt/
https://ycharts.com/indicators/egypt_oil_rotary_rigs
https://egyptoil-gas.com/news/edc-becomes-100-egyptian
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