Oilfield Services Market Overview:
In 2021, the oilfield services market was estimated to be worth USD 303.1 billion. According to projections, the Oilfield Services Market business will expand at a compound annual growth rate (CAGR) of 5.10% from USD 318.5 billion in 2022 to USD 451.2 billion by 2030.
Oilfield services (OFS) or oilfield equipment services are products or services associated with oil & gas exploration and production process. The companies play a major role in upkeep and manufacturing of equipment used in drilling activities.
Extraction of Shale Gas to Influence Market Demand
Shale gas is a natural gas with low permeability that can be extracted using hydraulic fracturing and drilling technologies. China and North America have large reserves of shale gas providing opportunities for the oilfield services market. Installation of multiple wells per pad can induce demand for OFS equipment.
Digitization of Data to be Lucrative
Digitization of new technologies and retention of valuable data gained from metrics to measure performance of wells can be attractive to experienced crews. The aim to lower oil price per barrel through optimized well design, low maintenance and upkeep costs, and supply management can bode well for oil and gas production companies. Utilization of cloud and remote operations to improve efficiency during the pandemic can lead to sustained demand beyond the forecast period.
Environmental Hazards to Hamper Market Growth
Extraction of shale gas leaves an indelible impact on the environment. Rise of sustainability and awareness among the public on harmful effects of oil on the environment can negatively impact market demand. But focus of OFCs on environmental, social, and governance (ESG) initiatives and implementations of the effort on their supply chain can bring a turnaround of their revenues.
COVID-19 Impact Analysis
The COVID-19 pandemic has negatively impacted the oilfield services market owing to surge in prices of crude oil and transition to renewable energy. Oilfield service (OFC) companies have decided to liquidate their earnings in order to sustain during the period. Shutdown of onshore rigs and inactivity of frack crews are likely to impact the market growth. Price wars between OPEC countries and developing economies can also impact the future of the market. But slow recovery of jobs and resumption of rigging can augur favorably for the market.
Segmentation Analysis
Production Service to Garner Significant Market Revenue
The production service is expected to capture a large share of the market owing to efforts for well testing and oil recovery in mature and new wells. Development of production chemicals to safeguard integrity of equipment and separation of oil from water can bode well for the market. On the other hand, well completion equipment can display a strong growth rate during the forecast period owing to presence of natural resources in North America and Asia coupled with availability of new technology for production of hydrocarbons.
Offshore to be Biggest Market Application
The offshore segment is set to be the leading market application owing to investments in subsea and oil & gas assets. This is attributed to improved well performance, well productivity, and extended lifespan of the well.
Regional Analysis
APAC to Lead Oilfield Services Market
Asia-Pacific (APAC) is set to lead in the global oilfield services market share owing to discovery of new wells and adoption of new technologies such as seismic mapping. Acquisitions of new ventures by companies to consolidate their position in order to mitigate risks and improve returns is the trend about to be witnessed in the region.
Competitive Analysis
· Schlumberger Limited (US)
· Halliburton (US)
· Baker Hughes (US)
· Weatherford International plc (US)
· National Oilwell Varcos (US)
· Asian Energy Services Limited (India)
· TechnipFMC plc (UK)
· Superior Energy Services Inc (US)
· China Oilfield Services Limited (China)
Industry Update
Halliburton has secured a contract with Energean to conduct well drilling and completion assignments for 3 years. It uses wireline logging solutions to accurately measure well data and evaluate potential of wells.
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