Core Laboratories Inc. maintains a constructive outlook on international upstream activity for the second half of 2023 and beyond. According to the company, a higher level of investment will be required to maintain and grow hydrocarbon production. They anticipate that spending on long-cycle upstream projects in both onshore and offshore environments will continue to expand.
However, they also acknowledge that the global crude-oil market may remain volatile in the near term due to global recession fears and uncertainty regarding China’s economic recovery. Despite this, the recent OPEC+ crude-oil production cuts being implemented to support the current market are not expected to be maintained or required long term.
Furthermore, production growth in areas outside of OPEC+ is facing constraints primarily due to prolonged underinvestment and the loss of production due to natural declines from existing fields.
Optimistic about a multi-year international recovery, Core Laboratories Inc. expects increased spending on exploration in various regions across the globe and expanded development of existing fields to fortify crude-oil and natural-gas reserves. They emphasize their positive outlook for continued improvement in international onshore and offshore activity, with ongoing projects across the globe. Particularly notable regions include the Middle East, South Atlantic Margin, and West Africa.
Shifting focus to the United States, land activity during the first half of 2023 was lower than expected. This is evident from the declining U.S. rig and frac spread counts throughout the second quarter. Core Laboratories Inc. anticipates that U.S. land completion activity for the second half of 2023 will be slightly lower compared to the first half.