The Oilfield Services Market is projected to reach $171.7 billion in 2025 from $138.9 billion in 2019, growing at a CAGR of 3.6%. Oilfield services sector is considered to be an essential partner for the oil exploration and production companies. They provide oil well maintenance, completion, production, supply, and logistical support services in both onshore and offshore. In general, oilfield services companies manufacture, repair, and maintain equipment used in the extraction and transport of oil. Factors such as increasing demand for oil, increasing use of internal sources of funding, and technological advancements are considered to drive the growth of this market. Moreover, discovery of new oilfields, mergers and acquisitions, and recent licenses and product launches are expected to provide significant opportunities in this market. However, strict government regulations on E&P activities, fluctuations in crude oil prices, and shortage of skilled labor are expected to hinder the growth of this market to some extent.
Increasing demand and technological advancements fuels the growth of the global oilfield services market
Increasing demand for oil consumption has been observed for the past three years and is expected to continue in the coming five years’ time period. The oilfield services sector faced a sharp downturn during 2014–2015 due to the unexpected price drop in crude oil which led to the decline in the oil upstreaming activity. Besides, several oilfield services contracts had been cancelled due to unfavorable profits. It was identified that during 2014–2016, around 36% of companies in the oilfield services sector ceased operations.
Over the past decade, technology has become increasingly more prominent in the E&P of oil and natural gas. Industry players expect technological advancements that could help them to enhance the productivity and efficiency. Oilfield service providers have worked to develop greater technological advancements that have made E&P activities more efficient and cost-effective. Robotics oil rigs and Remotely Operated Vehicles (ROVs) have facilitated the development of offshore oil fields since the 1980s. The end result, of these advances in technology is a more streamlined, quick and efficient process, aiding a rise in production levels.
Click here to: Get Free Sample Pages of this Report
Increasing use of internal sources of funding supports the market growth
Oilfield service providers are set to invest their internal source of funding due to the increasing crude oil prices. The major advantages of investing internal funds are reduction in the interest to the external funding sources and attain more profits. The internal funds are used to improve machinery, purchase real property, or develop a new product. Oilfield services use internal funding because it is a simple, direct way to obtain the capital for growth.
Discovery of new oil resources provides future opportunities for the market growth
Global discoveries of conventional oil and natural gas are seeing an exciting recovery with discovered resources already surpassing 4.5 billion barrel of equivalent (BOE) in the first half of 2018. Guyana led the top five countries in terms of total discovered resources added followed by the United States, Cyprus, Oman, and Norway. These five countries held three-fourths of the total resources discovered in 2018. The discoveries in Guyana, the United States, and Cyprus are located in ultra-deepwater and are 100% owned by oil majors, indicating that oil majors have started to re-focus on deepwater exploration.
The discovery trend is expected to continue backed by ongoing exploration in emerging offshore provinces and many promising high-impact wells targeting potential resources in the millions. The new discoveries of oil fields provide lucrative opportunities for the services sector in the oil & gas industry, thereby propelling the market growth in the forecast period.
Key findings in the global oilfield services market study:
Well completion services will witness the fastest growth in the oilfield services market during the forecast period (2019–2025)
Oil well completion services are defined as the post-drilling operations that are necessary for oil and gas production. Completion planning involves choosing and organizing the equipment to be used, selecting materials, establishing production line tubing dimensions, stipulating production intervals, and finally defining the mode of formation fluid production. The goal of well completion services is to stimulate the well to maximize production and running tubing to enhance the well’s lifespan and ease of maintenance. Factors such as increasing demand for high oil production from the production site and shale gas inflation are driving the growth of the well completion services segment.
Baker Hughes, Oil States Energy Services, Schneider Electric, Hunting Energy Services, and Halliburton are the leading players in providing oil well completion services in the oilfield services market.
Onshore oilfield services dominates the global oilfield services market by location
Onshore oilfield services refer to the well maintenance, intervention, completion, production, supply, and logistical support services to the onshore oil well production sites. Factors such as increasing new oil well discoveries and global increasing production of earth oil are primarily driving the growth of this market segment. Conventional land oil drilling is easier than water drilling and easy to maintain the oil well. The onshore oil production has increased to 71% of the total crude oil production in 2015 from 69% in 2010. This increasing demand would fetch enormous opportunities to the onshore oilfield services. The main advantage of the onshore services is that most of the oilfields are located onshore.
Asia Pacific: Fastest Growing Regional Market
Asia Pacific comprising of China, India, Korea, Japan, and Rest of Asia (RoAPAC) will witness the fastest growth during the forecast period (2019–2025). Factors such as steady oil production, increasing number of oil rig counts, and growing offshore activities in China are expected to drive the growth of oilfield services market in this region. These increasing oil production and rig counts trends are expected to bring optimistic opportunities to the oilfield service companies in APAC.
China accounted for the largest production of crude oil. Chinese oil & gas state-owned company, China National Offshore Oil Corporation (CNOOC), is planning to drill 132 exploratory wells. Similarly, Oil and Natural Gas Corporation Limited (ONGC), an Indian state oil & gas company has made a discovery of natural gas in the Gulf of Kutch, and is expected to start production within 2-3 years. Similarly, the number of oil rigs has been increasing. According to Baker Hughes, the total number of rig counts is increased from 187 in 2016 to 219 in 2017, growing at a growth rate of around 8%.
The report includes competitive landscape based on extensive assessment of the key strategic developments adopted by leading market participants in the industry over the past 3 years (2016–2018). The key players operating in the global oilfield services market are Schlumberger Limited, Baker Hughes GE, Halliburton Company, Weatherford International, Plc, China Oilfield Services Limited (COSL), Basic Energy Services, Superior Energy Services, Inc., FMC Technologies, Inc., Welltec, Weir Oil & Gas, National Oilwell Varco, Oil States International, Inc., and Archer Limited among others.
Scope of the Report:
Market by Service Type
- Pressure Pumping
- Oil Country Tubular Goods (OCTG) Services
- Well Intervention and Coiled Tubing
- Drilling and Completion Fluid
- Well Completion
- Wireline Services
- Seismic Testing
- Other Services
Market by Location
Market by Geography
- North America
- Asia Pacific (APAC)
- Middle East and Africa
- Latin America
Key questions answered in the report-
- Which are the high growth market segments in terms of service type, location, and region?
- What was the historical market for oilfield services across the globe?
- What are the market forecasts and estimates for the period 2019-2025?
- What are the major drivers, restraints, and opportunities in the global oilfield services market?
- Who are the major players in the global oilfield services market?
- How is the competitive landscape and who are the market leaders in the global oilfield services market?
- What are the recent developments in the global oilfield services market?
- What are the different strategies adopted by the major players in the global oilfield services market?
- What are the geographical trends and high growth regions?
- Who are the local emerging players in the global oilfield services market and how do they compete with the global players?