Activity in the oilfield services sector: Russian companies increase drilling volumes

Analytical data demonstrates unprecedented intensity of drilling operations in the Russian oil and gas sector. In the first two months of this year, production drilling volumes exceeded the 2,370 kilometer mark. This is a third more than the pre-pandemic period, Bloomberg reports.

Domestic oil giants continue to increase the pace of drilling despite sanctions pressure. Industry experts note that restrictions on the supply of imported equipment turned out to be less critical than previously predicted. Russian oil services have shown amazing adaptability to the new conditions.

Expert Ronald Smith from Emerging Markets Oil & Gas Consulting Partners claims that the current hydrocarbon production potential in Russia is in the range of 11-11.5 million barrels per day. This figure is almost identical to the level of 2016, when the OPEC+ agreement was concluded. Smith emphasizes that drilling companies have successfully adapted to the sanctions restrictions.

Analysts from the company "Yakov and Partners" calculated that about 95% of Russian oil production today comes from the Soviet legacy - fields discovered in the USSR. This circumstance makes the use of modern technologies to enhance oil recovery especially relevant.

Russian oilfield services are betting on horizontal drilling at mature fields, primarily in Western Siberia. Currently, horizontal wells account for approximately 80% of production drilling in the region. By 2030, this figure could reach 95%, making the technological approach similar to the practice of the American Permian shale basin.

Against the background of an increase in production drilling, a decrease in the rate of exploratory drilling is observed. In January-February 2025, the monthly volume was only 46 kilometers. For comparison: in the same period of 2024, this figure reached almost 68 kilometers, and in 2022 - about 75 kilometers.

Exploratory drilling plays a key role in ensuring the country's long-term energy security. The reduction in its volumes is a concern for industry experts.Without the discovery of new hydrocarbon reserves, maintaining the current level of production in the future may become problematic.

It is noteworthy that the share of horizontal wells in the total drilling volume has grown to two-thirds. In 2020, this figure was only half. Such dynamics indicate the technological development of domestic oilfield services.