Daily Management Review

OPEC’s Oil Income Increases In 2021, But Drop In Oil Well Completions


OPEC’s Oil Income Increases In 2021, But Drop In Oil Well Completions
OPEC's oil revenue increased in 2021 with prices and demand recovering from the tanking of the market during the COVID-19 pandemic, although the number of active rigs among its members increased little and new completed wells decreased, according to group data.
According to OPEC's Annual Statistical Bulletin, the value of petroleum exports by the 13-member Organization of Petroleum Exporting Countries reached $561 billion in 2021, up 77 percent from 2020.
As OPEC increased output in 2021, the number of operating oil rigs in OPEC members increased by 11% to 489, a lesser increase than seen globally. Saudi Arabia, the world's largest exporter, increased its rig count to 65 in 2021, however the total was lower than in 2019.
OPEC and its allies, known as OPEC+, have been failing to increase output in line with expectations, owing to underinvestment in drilling and exploration by some members. One of the reasons oil prices have risen in 2022 is because of the deficit.
Another indicator tracked by OPEC is the number of completed wells in the group's members, which fell to 1,588 last year, a decrease of 280 from 2020 and the lowest since at least 2017.
According to the OPEC report, well completions fell in all OPEC members except Libya, Venezuela, Equatorial Guinea, Angola, and Iran. In contrast, the number of finished wells worldwide climbed last year.