In 2016, the global oilfield services market was worth USD 103.26 trillion. Over the forecast period, the market will be driven by the increasing development of oilfields and rising energy demand. The U.S. Energy Information Administration, (EIA) states that global energy consumption is increasing rapidly due to increased electricity consumption and increased transportation. The rising per-capita income and the rise in global GDP support this trend. Over the past few years, the global economy has experienced steady growth. Due to increased exports and capacity expansions in different industries, as well as rising incomes, mature economies like the U.S. saw an increase in their GDPs after 2011.
In terms of services, the U.S. market was valued at USD 46.60 million in 2014. It is expected to grow at a steady 3.7% CAGR over the forecast period. Due to the increasing demand for oilfield services, there are more players in the U.S. These factors will likely increase the demand for oilfield services in the region over the next few decades.
According to BP Energy Outlook 2017, natural gas demand is expected to grow at the highest rate between 2008 and 2020. It is expected to grow at a CAGR of 1.9% between 2012 and 2035. The majority of this growth will be reported in non-OECD nations, which exceeds the demand in OECD member states. The market has begun to focus on oilfield services due to the increasing demand for energy, especially natural gas.
Long-term, the growing demand for refined products will also be a factor in boosting oil & gas production. Onshore projects will see a boost due to the rising demand for crude oil and natural gases in China, Russia and Saudi Arabia in the future. Major market players, including Schlumberger Limited, Halliburton, Baker Hughes, Inc., and Baker Hughes, Inc., invest in R&D activities related redeveloped projects and abandoned wells in various offshore oilfields.
These initiatives will be a positive driver of the market during the forecast period. Market participants have had to develop efficient cooling and lubricant products to extend the equipment's life span in harsh environments like desert topography and dry climate. Over the forecast period, drilling fluids will be in high demand due to the increasing volume of offshore oil & gas exploration, especially in Saudi Arabia, China, Russia and the U.S.
Over the forecast period, the sector will be driven by the increasing global offshore drilling rig count (which averaged over 4% per year in 2016), and the development of offshore wells in deep and ultra-deep water, especially in the South China Sea and Gulf of Mexico. Over the forecast period, the rising demand for oilfield services will fuel oilfield services in offshore activities. Market growth is expected to be driven by the increasing number of Middle East & Africa projects, including the Maydan Mahzam field and Bul Hanine fields.
Fluid control in reservoirs, well repairs, sand control and zonal isolation are all examples of workover & completion. When a well is not suitable for production of oil and gas resources, these services are provided. Components used in the downhole segment, including safety valves, electrical submersible pumps and tubing, can fail due to high working temperatures and pressures. They need to be repaired or replaced at regular intervals. These factors will be a major driver of market growth during the forecast period.
The production segment deals in wellbores and reservoirs. This segment uses tubular goods, surface and ground wellheads, flowlines as well as processing equipment such artificial lift equipment, metering equipment, separators or chokes, manifolds valves storage vessels, fluid & gas treatment equipment, and manifolds. Producing solutions can control excess oil production and wax from crude oil. Both of these factors are barriers to oil & gas resource production. These applications will drive the oilfield services market during the forecast period.
Extensive drilling has led to a decline in oil & gas resources around the world. To meet the growing global demand for oil and gas resources, efficient comminution is required. Effective drilling solutions are also required for the production of high-quality oil and gas resources. Over the next eight year, the market is expected to grow due to the rising demand for oil and natural gas.
Large-scale exploration is required due to the increasing energy demand from the rapidly industrializing world and the population's growing numbers. The subsea segment is expected to grow due to increased participation in order to maintain the region's energy demand and the increasing number of deepwater discovery. M2 Subsea and Next Geosolutions have entered into an agreement to conduct subsea surveys at the Aberdeen port in Scotland. To overcome the technological and environmental problems in drilling, manufacturers are shifting to nanotechnology-based solutions.
Modern techniques such as the seismic service allow rig operators and geoscientists, without needing to drill a well, to determine the orientation and depth underground rocks. This is done by transmitting sound waves from the bottom to the surface below the drilling platform. This same process is used at offshore drilling sites. Sound waves are transmitted from drilling platforms by streamers, guns, and tail buoys. This allows rig operators to get a 3D view of the surface below and helps them to analyze it carefully before they decide to drill on it. These factors will likely boost market growth during the forecast period.
Due to an increasing global population and increased energy demand, the demand for oilfield services continues to rise. In 2016, the field operations segment was the largest and held a 40.4% share in the market. E&P companies use equipment rental services to reduce the cost of purchasing the equipment needed for drilling. E&P companies rent various types of equipment including tubing, handling tools and trailers.
E&P companies may consider outsourcing drilling operations due to the complexity of the process. Field operations are the solution to drilling wells, inserting tubing into wellbores and reservoir management. They also include extraction of oil & natural gas resources from the resource bed. Field operations helps E&P companies reach their maximum operating limits in a given timeframe. Remote operations include repair and maintenance, extraction of resource, monitoring, and monitoring. This segment helps companies reduce risks and is expected be a driver of the oilfield services market over the forecast period.
Operators can plan ahead by anticipating how field operations will turn out. Operators are better prepared for any mishaps, such as an oil leakage. E&P companies can use consulting and analytical solutions to analyze the rock surface or rocks for drilling without actually drilling. This section uses scientific methods and techniques such as optimization, simulations, mathematical testing, experimental designs, and mathematical testing to find the best solutions for E&P companies. These techniques are expected to drive the market during the forecast period, as they help reduce the risk involved in oilfield operations.
The depletion of conventional resources has prompted the oil and gas industry to develop unconventional resources like shale oil, tight oil, and coal bed methane. But extracting them is difficult without the right techniques. The market is expected to be driven by this shift over the forecast period. The use of hydraulic fracturers has been supported by governments across North America as well as Asia Pacific. It is prohibited in France and Bulgaria due to the potential environmental dangers. China, which has the largest shale gas reserve, has taken enormous steps to develop it in order meet its ever-increasing energy demand. China's government has established strict shale gas production goals, which will require oilfield solutions. Globally, major companies have focused on China investments.
The Alaska Oil and Gas Association has imposed strict regulations regarding the use and execution of oilfield services within the region. These regulations require that all chemicals used in drilling operations must be disclosed. FracFocus is a national website that the EIA maintains for the disclosure of chemicals. There are many government regulations, federal, state, or local, that govern oil and gas drilling in the United States. These regulations are set by different government agencies, including the U.S. Department of Energy (DoE), U.S. Environmental Protection Agency(EPA) and Energy Information Administration.
Asia Pacific has been a major energy consumer in the past decade. The region's increasing energy consumption is supported by a growing population, particularly in China and India. This fuels the essential energy requirements for electricity, transport, and fuel for cooking. Due to increasing urbanization, the region's demand for crude oil is rising.
China has invested four times more than the U.S. to develop its shale resources. This has opened up the vast potential for oil and gas companies like Schlumberger and Halliburton to expand. Schlumberger opened a 32,000-square-foot reservoir laboratory in Chengdu (China) in July 2013. This was to help with the growing exploration activity and provide analysis of rocks in unconventional shale play.
Algeria's government has taken initiative to ease regulations regarding services provided by the two largest oilfields, Hassi Messaoud & Ourhoud. Hassi Messaoud's oil production grew to 470,000 Mbbl in July 2016 from 420 Mbbl in the previous year. The same for Ourhoud, which grew from 100 to 125 million barrels per day. These initiatives will drive the market during the forecast period.
This market also includes companies that don't directly invest in oilfield assets but instead help major oil & natural gas E&P companies with technological insights, from seismic surveys to well completion operations. The market is home to major companies such as Schlumberger and Halliburton, Baker Hughes. Weatherford International, Calfrac Well Services and Cudd Energy Services.
Schlumberger offers a variety of hydraulic fracturing products to its customers, including multistage fracturing, fracking using coiled tubing and PerfFRAC shalegas dynamic fluid diversion services. Broadband Sequence is a new fracturing method that allows sequential stimulation of perforation groups, particularly in dry-gas wells with unconventional reservoirs. This new technique separates fractures at the wellbore sequentially so that each cluster in each zone is accurately fractured.
Halliburton also offers hydraulic fracturing solutions, including microseismic and well stimulation, fracture modeling software and tubing anchors. Halliburton recently introduced "FracHeight", a new fracking service that combines microseismic receivers with downhole tiltmeter sensor sensors. This allows for direct measurement of formation movement and fracture dilation.
This report predicts revenue growth at both the country and global levels. It also provides analysis of industry trends for each sub-segment from 2014 through 2025. Grand View Research divided the global oilfield service market by type, application, region, and type.
Application Outlook (Revenue, USD Billion; 2014 - 2025)
Offshore
Offshore
Service Outlook (Revenue, USD Billion; 2014 - 2025)
Workover & completion services
Production
Drilling
Subsea
Seismic
Separation & processing services
Other
Type Outlook (Revenue, USD Billion; 2014 - 2025)
Equipment rental
Field operation
Consulting & analytical services
Regional Outlook (Revenue USD Billion; 2014-2025)
North America
The U.S.
Canada
Mexico
Europe
The U.K.
Russia
Asia Pacific
China
Australia
Central & South America
Brazil
Argentina
Middle East & Africa
Saudi Arabia
Algeria
South Africa
Up Market Research published a new report titled “Oilfield Services Market research report which is segmented by Service (Production, Subsea, Seismic, Workover & Completion, Drilling), By Players/Companies Calfrac Well Services, Schlumberger, Baker Hughes, Weatherford International, Halliburton, Cudd Energy Services ”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
Report Attributes | Report Details |
Report Title | Oilfield Services Market Research Report |
By Service | Production, Subsea, Seismic, Workover & Completion, Drilling |
By Companies | Calfrac Well Services, Schlumberger, Baker Hughes, Weatherford International, Halliburton, Cudd Energy Services |
Regions Covered | North America, Europe, APAC, Latin America, MEA |
Base Year | 2020 |
Historical Year | 2018 to 2019 (Data from 2010 can be provided as per availability) |
Forecast Year | 2028 |
Number of Pages | 206 |
Number of Tables & Figures | 145 |
Customization Available | Yes, the report can be customized as per your need. |
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Service (Production, Subsea, Seismic, Workover & Completion, Drilling).
Oilfield Services Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
Key Benefits for Industry Participants & Stakeholders:
Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the Oilfield Services Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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