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Global Oilfield Services Market was Valued at US$ 112.9 Bn in 2019 and it is Expected to Reach More than US$ 149.8 Bn by 2027, Likely to Grow with the CAGR of 3.20% During the Forecast Period.
Oilfield services include various crude oil production-related activities such as exploration, drilling, stimulation, completion, intervention, and production for the entire life cycle of oil exploration. In general, the oilfield services companies manufacture, repair, and maintain equipment used in the extraction, supply, and logistical support services required for oil exploration. 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, the discovery of new oilfields, mergers and acquisitions, and recent product launches are expected to provide significant opportunities in Oilfield Services market.
Increasing Demand For Oil, Increasing Use of Internal Sources of Funding, and Technological Advancements are Anticipated to Drive the Growth of Oilfield Services Market
The discovery of new oil & gas fields along with the increasing volume of crude oil production and application of enhanced oil recovery (EOR) technique in maturing oilfields expected to drive the growth of the market. Liberalization of the Mexican oil & gas industry along with the Shale revolution in the U.S & China expected to boost the oilfield service market across the globe.
The Oilfield service providers are started to invest their internal sources of funding due to the increasing crude oil prices. The internal funds are used to develop a new product, improve machinery or purchase real property as it is a direct way to obtain the capital for growth.
However, the adverse environmental effects of exploration & production (E&P) activities and stringent government regulations are likely to hinder the market growth.
Onshore Oilfield Services Dominates the Global Oilfield Services Market During the Forecast Period
The onshore application segment in the oilfield services accounts for most of the demand. Onshore application is highly implemented in regions such as North America and Middle East & Africa especially in countries such as Saudi Arabia, Kuwait, the U.S., and Canada, where the maximum number of onshore wells are located for oilfield services. Onshore oilfield services include the oil well maintenance, intervention, completion, production, supply, and logistical support services to the onshore oil well production sites. The new oil well discoveries and global increasing production of earth oil are primarily driving the growth of this market segment. Furthermore, the main advantage of the onshore services is that most of the oilfields are located onshore. Onshore oil production has increased to 71% of the total crude oil production in 2019. This increasing demand provides huge opportunities for onshore oilfield services.
However, the offshore segment is also projected for a healthy growth rate, despite being expensive, due to depleting onshore resources, which has urged operators to explore alternatives.
Well Completion Equipment & Services Segment Witness The Fastest Growth In The Oilfield Services Market During The Forecast Period
The well completion equipment and services segment are expected to grow at the highest rate during the forecast period. The need for preparation of well for petroleum products attributed to market growth for this segment. North America region is the major contributor to the growth of the segment with the presence of natural resources and the availability of technology for the production of unconventional hydrocarbons in the region. In addition, the presence of major players in the region makes the implementation of technology at the production site economical. 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 shale gas inflation and increasing demand for high oil production from the production site are driving the growth of the well completion services segment.
North America Is Expected to Hold Largest Market Share in the Global Oilfield Services Market During the Forecast Period
The market in North America is expected to dominate the global oilfield services market and is expected to remain the most prominent region throughout the forecast period. Currently, North America serves the maximum demand for oilfield services, which is a reflection of deep-water productions in the countries of the U.S. and shale gas production in Canada.
According to the IEA, the US is projected to become the net exporter of energy by 2020. Moreover, increased oil & gas exploration & production activities due to the shale revolution the US retained its position as a top oil producer in 2019. Recently, the Mexican government has begun expanding its oil & gas industry with the liberalization of its domestic energy sector. The production of oil & gas from oil sands, tight gas, and natural gas from coal, in Canada, combined with shale gas activities in the U.S., would drive the oilfield services market in North America.
Middle-East Oilfield Services Market is Expected to Grow Significantly During the Forecast Period
The presence of huge oil & gas resources in the region offers extensive opportunities to the Oilfield services providing companies in the Middle-East as compared to any other geographical region across the globe. Saudi Arabia is one of the major oil producers globally The natural gas production in Saudi Arabia has been planned to be doubled in the coming decade, which is expected to result in increased activities related to gas production.
Baker Hughes is a leading global oilfield services market for the oil and natural gas industry. The company also provides services for the process, industrial products, and pipeline service and downstream chemical industries.
Some of the key players in the global Oilfield Services Market are Halliburton Company, National Oilwell Varco, Inc., Baker Hughes Incorporated, Nabors Industries Ltd., Weatherford International Ltd., Schlumberger Limited, Precision Drilling Corporation, Superior Energy Services Inc., and Trican Well Service Ltd.
Oilfield Services Market Key segments:
Oilfield Services Market, By Type
Oilfield Services Market, By Service
- Pressure Pumping Services
- Oil Country Tubular Goods
- Wireline Services
- Well Completion Equipment & Services
- Well Intervention Services
- Drilling & Completion Fluid Services
- Drilling Waste Management Services
- Coiled Tubing Services
Oilfield Services Market, By Region
- North America
- Asia Pacific
- Middle east and Africa
- Latin America