New ten-year outlook points to rising global utilisation and increasing demand for high-specification rigs
Middle East land drilling rig demand is forecast to rise 60% from 2025 levels by 2035, as global rig demand increases and supply declines, according to new analysis from Westwood Global Energy Group (Westwood), the specialist energy market research and consultancy firm.
Against a backdrop of geopolitical uncertainty, Westwood’s Global Land Drilling Rig Outlook 3Q 2026, the first quarterly edition of the report and now incorporating a ten-year forecast, projects average global demand of approximately 4,250 rigs annually between 2026 and 2030, rising to almost 4,550 between 2031 and 2035 – 12% above the 2021–2025 average. Meanwhile, as older rigs are retired and demand continues to grow, the gap between supply and demand is expected to narrow, pushing global utilisation from an average of 48% in 2026–2030 to 53% in 2031–2035.
Ben Wilby, Research Manager, Onshore Energy Services at Westwood, said: 'The conflict in the Middle East has significantly disrupted drilling activity this year, particularly in Iraq. A return to 2025 levels of rig demand will depend on regional security stabilising and reliable access to export routes. Nevertheless, operators continue to make long-term commitments to the region, giving us confidence in its growth prospects once conditions allow.'
Key findings from the outlook include:
- Middle East growth: Rig demand forecast to reach ~820 units by 2035, a 60% increase on 2025 levels. Despite disruption to drilling activity in 2026, Westwood expects a recovery from 2027, led by Saudi Arabia and a UAE freed from the constraints of OPEC, with continued investment in unconventional gas developments and crude production expansion.
- Latin America expansion: Regional rig demand forecast to increase 54% from 2025 levels to ~260 units by 2035. Argentina’s Vaca Muerta shale play remains a major driver, with demand expected to increase from 84 rigs in 2025 to 113 by 2035. Venezuela also presents significant potential, with demand projected to grow over 600% on 2025 by 2035, driven by strong operator investment plans, support from the US administration and the partial lifting of sanctions – although infrastructure, workforce and supply chain constraints remain.
- Growing demand for high-specification rigs: High-horsepower rigs are forecast to achieve average utilisation of 64% over 2026–2035, compared with 35% for lower-horsepower units as operators increasingly target deeper and more complex reservoirs. This is also contributing to the redeployment of under-utilised US rigs to international growth markets, including Argentina, Australia and the Middle East.
Wilby continued: 'More broadly, the outlook for land drilling is positive, with growing demand and a gradually shrinking rig fleet expected to support higher utilisation. But not every rig will benefit equally. Operators are drilling deeper, more complex wells and increasingly want modern technology and automation to improve efficiency and safety. Contractors need to make sure their fleets meet increasingly demanding operator specifications if they want to capitalise on that growth.'
Further information on Westwood’s Global Land Drilling Rig Outlook 3Q 2026 is available here.
Source: Westwood Global Energy Group
Westwood Global Energy Group
The energy landscape is changing; and Westwood Global Energy Group is evolving in-step to answer the strategic, commercial and technical questions industry stakeholders face each day. As trusted advisors to companies in key energy transition and oil and gas sectors, Westwood Global Energy Group scrutinises and integrates parts of the energy system that others don’t.
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Westwood Global Energy Group is headquartered in London and has offices in Aberdeen, Houston and Singapore.
