Demand for drilling rigs in the Middle East is expected to reach 820 units by 2035, representing a 60% increase compared to levels in 2025. This information is part of a report by Westwood Global Energy Group that analyzes the state of drilling rigs globally.
Global Demand and Capacity Trends
According to a recent report, global demand for drilling rigs is projected to average around 4,250 units per year from 2026 to 2030, and this figure is expected to rise to nearly 4,550 units from 2031 to 2035, which is 12% higher than the average from 2021 to 2025. With the retirement of older rigs, the global utilization rate is expected to increase from 48% during 2026 to 2030 to 53% from 2031 to 2035.
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Challenges and Opportunities in the Middle East
In the Middle East, drilling activity is expected to face disruptions in 2026, but improvements are anticipated starting in 2027, especially with leadership from Saudi Arabia and the United Arab Emirates, which are no longer affected by OPEC quotas. Ongoing investment in unconventional gas and the expansion of crude oil capacity will support this improvement.
Despite security challenges and disruptions caused by conflicts in Iraq, demand for drilling rigs is still considered a long-term opportunity. According to Ben Wilby, Director of Onshore Energy Services Research at Westwood, a return to 2025 demand levels depends on regional security stability and reliable access to export routes.
Increasing Demand in Latin America
In Latin America, demand is expected to increase by 54% to around 260 units by 2035. The Vaca Muerta shale field in Argentina is expected to grow from 84 rigs in 2025 to 113 rigs. Additionally, Venezuela's demand is projected to grow by over 600% during this period.
Westwood also expects that high-capacity rigs will experience a 64% utilization rate during the 2026 to 2035 period, while this figure will be 35% for low-capacity rigs. This discrepancy has led to the redistribution of underutilized rigs from the United States to growing markets such as Argentina, Australia, and the Middle East.
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