Technological Advancements are Driving the Middle East well Completion & Services Market

Thursday 21 May 2015, Amsterdam

The focus on research and technological advancements has aided companies in minimizing their costs of well completion. This has not only increased the efficiency and stability of the products/services but has also increased the production rate, thus, generating large revenues for the companies. Research and development in well completion involves substantial investments and significant risks. In order to minimize the same, leading players are seeking new product and service developments and signing new contracts and agreements to acquire business segments of small and big companies to increase their market share. For instance, Halliburton Co. (U.S.) acquired Baker Hughes Inc. (U.S.) in November 2014 to increase its market share and also to strengthen its existing product portfolio and services.

The oil & gas industry has witnessed a technological revolution in the extraction of oil and gas with the advent of new technologies in packers, sand control tools, multi-stage frac tools, liner hangers, smart wells, and safety valves. These equipment have facilitated the production of oil and gas in hostile environments. Innovations in the smart wells technology has helped in increasing operational efficiency and cost-effectiveness. Smart wells help in recording and monitoring well conditions before or after exploration activities. The sand control tools segment is the fastest-growing segment in the well completion equipment and services market.

The Middle East is the fastest-growing market for the well completion equipment and services industry. The region is experiencing growth in the number of drilling activities; thus increasing the demand for well completion equipment and services. The increase in the number of drilling activities is due to the increase in the demand for oil and gas and the increase in the number of investments made by foreign players in the onshore and offshore activities in this region.

Although the well completion equipment and services market in the Middle East is dominated by a few major players, the market scenario is expected to become competitive, with various companies catering to onshore and offshore applications in the coming years. The Middle East is one of the most attractive markets for the well completion equipment and services market. Oman and Saudi Arabia are the market leaders. Saudi Arabia is one of the largest producers and exporters of crude oil in the world. Oman’s onshore segment contributes more than 91% to the country’s oil and gas industry.

The well completion equipment and services market continues to grow at an increasing pace, as the requirement for energy is rising sharply in the Middle East region.