The oilfield services market is expected to grow at a CAGR of over 3% during the forecast period of 2020 – 2025. Factors such as increase in demand for advanced technology, tools and equipment to increase efficiency of exploration and production activities in onshore and offshore areas is expected to drive the market for oilfield services. However, the volatile oil prices over the recent period, owing to the supply-demand gap, geopolitics and several other factors has been restraining the growth in the demand for oilfield services market.
- Drilling Services are expected to lead the market for oilfields services, reasons being increase in exploration activities and massive development of shale plays in recent years. With wells being drilled going farther away from land and into the sea and being drilled deeper than before the market oilfield services is expected to grow in the forecast period.
- North America is the biggest market for oilfield services, owing to increased drilling and production activity in shale plays.
- The demand for oil and gas production have always been on an increase, which have led to increased exploration activities in offshore. This in turn is expected to act as opportunity for the market during the forecast period.
Key Market Trends
Drilling Services to dominate market growth
- Drilling services make up for the biggest share in oilfield services market, with drilling and completion services combined accounting for over 50% of the market.
- The oil and gas production have always been on an increase even when oil prices went down in 2014 because of the ever-increasing demand of oil and gas. This, in turn, requires for an increase in oilfield services for more production from existing and new wells, signifying an increase in oilfield services market.
- The active rig count have been on the rise in recent years, with around 920 active rigs in September 2016 to 1130 in September 2019, showing an increase in drilling activity and hence the oilfield services market.
- With the increasing crude oil prices, the upstream investment is expected to grow significantly and bring several projects online, thereby, driving the market.
- Almost all the easy oil being already discovered the wells now being drilled are deeper and more complex than before, also deep and ultra-deep-water drilling operations are also on the rise. Both factors have led to a growth in demand for oilfield services market.
North America to Dominate the Market
- The share of North America in global crude oil production has increased from 18.8% in 2001 to around 23% in 2018, which has resulted in increased demand for oilfield services in the region.
- In North America the oil and gas projects are becoming more competitive, owing to improving efficiencies and tightening of the supply chain, which has led to declining costs of drilling and have in turn made a lot of projects viable.
- The recent development of shale plays, horizontal drilling and fracking have resulted in a massive increase in demand of oilfield services in the country.
- Therefore, factors such as rising oil and gas investments along with development of shale plays in the region are expected to give a positive growth to the oilfield services Market in the forecasted period.
The oilfield services market is fragmented with a lot of active players. Some of the major players are Schlumberger Limited, Baker Hughes Company, Halliburton Company, Weatherford International Plc, National Oilwell Varco, Transocean among others.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client’s requirements
- 3 months of analyst support