According to the latest market research study on “Oilfield Service Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Application, Service Type,” the market is expected to grow from US$ 96,465.86 million in 2021 to US$ 145,963.08 million by 2028; it is expected to grow at a CAGR of 6.1% from 2020 to 2028.
The oilfield services business is being pushed by increased exploration and production activities due to the rising demand for energy across the world. Growing urbanization and industrialization, and rapid technology improvements have contributed considerably to the oilfield service market growth. The upstream portion of the oil and gas business is exploration and production (E&P), and it encompasses the phases of search, exploration, drilling, and extraction. The exploration and production (E&P) sector is the first oil and gas production stage. Production and exploration activities are expanding due to the increased energy demand and profitable investment possibilities in the oil & gas sector. For instance, in July 2019, i3 Energy PLC granted Baker Hughes GE, one of the world's leading oilfield services firms, contracts for US$3,249,901.15 million to carry out drilling at its North Sea Liberator and Serenity properties. BHGE will provide oilfield services and equipment for i3's summer drilling operations in the outer Moray Firth for its Liberator and Serenity prospects. Conventional onshore oil is expected to account for a significant portion of total global oil output. According to the DNV-GL Energy-Transition-Outlook, oil output will rise by 83 million barrels per day (Mbpd) in 2022. Due to increased energy demand across Asia Pacific, driven by fast economic development, the region is becoming highly reliant on oil and gas imports. Therefore, Asia Pacific countries are boosting their offshore exploration and production (E&P) efforts to improve local energy output and reduce reliance on imported oil and gas. As a result, rising production and exploration activities in the oil & gas sector fuel the growth of the oilfield service market.
North America is known for the highest rate of adoption of advanced technologies due to favorable government policies to boost innovation and strengthen infrastructure capabilities. As a result, any factor affecting the performance of industries in the region hinders its economic growth. Currently, the US is the world's worst-affected country due to the COVID-19 outbreak, which has led governments to impose several limitations on industrial, commercial, and public activities in the country to control the spread of infection. The oil sector is in the midst of its third price crash in the last twelve months. The industry recovered after the first two shocks, and business as usual resumed. This time, though, things are different. The situation comprises a supply shortage, a historically low demand, and a worldwide humanitarian catastrophe. As the COVID-19 pandemic continued to overwhelm the economy, job losses in the US oilfield services industry have increased. Texas, Louisiana, Colorado, Oklahoma, and New Mexico were among the hardest-hit states in the US. According to the International Energy Agency, worldwide oil, gas, and refined product output will be down 3.4% in 2020, compared to the previous year before the COVID-19 Pandemic. However, the reduction was far more significant in Latin American oil-producing countries.
The global oilfield service market is segmented on the basis of type, service type, and geography. By type, the oilfield service market is bifurcated into onshore and offshore. In 2020, the offshore segment held a larger share in oilfield service market. Based on service type, the oilfield service market is segmented into well completion, wire line, artificial lift, perforation, drilling and completion fluids, and others. In 2020, the others segment accounted for the largest oilfield service market share. Geographically, the oilfield service market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2020, Europe accounted for a significant share in the global oilfield service market.
Reasons to Buy
The oilfield services business is being pushed by increased exploration and production activities due to the rising demand for energy across the world. Growing urbanization and industrialization, and rapid technology improvements have contributed considerably to the oilfield service market growth. The upstream portion of the oil and gas business is exploration and production (E&P), and it encompasses the phases of search, exploration, drilling, and extraction. The exploration and production (E&P) sector is the first oil and gas production stage. Production and exploration activities are expanding due to the increased energy demand and profitable investment possibilities in the oil & gas sector. For instance, in July 2019, i3 Energy PLC granted Baker Hughes GE, one of the world's leading oilfield services firms, contracts for US$3,249,901.15 million to carry out drilling at its North Sea Liberator and Serenity properties. BHGE will provide oilfield services and equipment for i3's summer drilling operations in the outer Moray Firth for its Liberator and Serenity prospects. Conventional onshore oil is expected to account for a significant portion of total global oil output. According to the DNV-GL Energy-Transition-Outlook, oil output will rise by 83 million barrels per day (Mbpd) in 2022. Due to increased energy demand across Asia Pacific, driven by fast economic development, the region is becoming highly reliant on oil and gas imports. Therefore, Asia Pacific countries are boosting their offshore exploration and production (E&P) efforts to improve local energy output and reduce reliance on imported oil and gas. As a result, rising production and exploration activities in the oil & gas sector fuel the growth of the oilfield service market.
Impact of COVID-19 Pandemic on Global Oilfield Service Market
North America is known for the highest rate of adoption of advanced technologies due to favorable government policies to boost innovation and strengthen infrastructure capabilities. As a result, any factor affecting the performance of industries in the region hinders its economic growth. Currently, the US is the world's worst-affected country due to the COVID-19 outbreak, which has led governments to impose several limitations on industrial, commercial, and public activities in the country to control the spread of infection. The oil sector is in the midst of its third price crash in the last twelve months. The industry recovered after the first two shocks, and business as usual resumed. This time, though, things are different. The situation comprises a supply shortage, a historically low demand, and a worldwide humanitarian catastrophe. As the COVID-19 pandemic continued to overwhelm the economy, job losses in the US oilfield services industry have increased. Texas, Louisiana, Colorado, Oklahoma, and New Mexico were among the hardest-hit states in the US. According to the International Energy Agency, worldwide oil, gas, and refined product output will be down 3.4% in 2020, compared to the previous year before the COVID-19 Pandemic. However, the reduction was far more significant in Latin American oil-producing countries.
Key Findings of Study
The global oilfield service market is segmented on the basis of type, service type, and geography. By type, the oilfield service market is bifurcated into onshore and offshore. In 2020, the offshore segment held a larger share in oilfield service market. Based on service type, the oilfield service market is segmented into well completion, wire line, artificial lift, perforation, drilling and completion fluids, and others. In 2020, the others segment accounted for the largest oilfield service market share. Geographically, the oilfield service market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2020, Europe accounted for a significant share in the global oilfield service market.
Reasons to Buy
- Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the oilfield service market
- Highlights key business priorities in order to assist companies to realign their business strategies
- The key findings and recommendations highlight crucial progressive industry trends in the oilfield service market thereby allowing players across the value chain to develop effective long-term strategies
- Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
- Scrutinize in-depth Global market trends and outlook coupled with the factors driving the market, as well as those hindering it
- Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution
Table of Contents
1. Introduction
3. Research Methodology
4. Oilfield Service Market Landscape
5. Oilfield Service Market - Key Market Dynamics
6. Oilfield Service - Global Market Analysis
7. Oilfield service Market - By Application
8. Oilfield service Market - By Service type
9. Oilfield service Market - Geographic Analysis
10. Oilfield service Market - Covid-19 Impact Analysis
11. Industry Landscape
12. Company Profiles
13. Appendix
List of Tables
List of Figures
Executive Summary
The oilfield service market was valued at US$ 96,465.86 million in 2021 and is projected to reach US$ 145,963.08 million by 2028; it is expected to grow at a CAGR of 6.1% from 2021 to 2028.A significant increase in oil demand is predicted to be supported by the global economy. Strong economies are likely to use more oil. The demand is expected to grow at a rate of 1.2 million barrels per day per year between 2020 and 2024. By 2023, India and China are estimated to account for over half of all global oil demand. As a result, leading oil and gas operating corporations are under increasing pressure to expand production to meet rising energy demand. As conventional fields have begun to show signs of maturity, some operating companies have turned their focus to exploitation of unconventional deposits. Therefore, alternative drilling services, such as onshore contract drilling, are likely to have a positive impact on the oilfield service market during the forecast period.
Furthermore, the surging global energy consumption, growing technological advancements in the oilfield, increasing productivity from mature deposits, and rising investments in deep-water exploration projects would drive the global oilfield service market in the coming years. Over the projected period, an increase in deep-water exploration and production activities in the Gulf is predicted to drive the demand for drilling.
The oil & gas sector is experiencing technical improvements in exploration technologies for deep-water drilling activities and project economic viability. Current technological advancements enable oil firms to boost recovery and speed output. Offshore wells can have varying degrees of automation, ranging from essential one-way monitoring to complicated subsurface controls with intelligent completions. Petrobras has established a corporate program to investigate, develop, and apply digital integrated field management (GeDIg) among its production assets, anticipating near-term potential. Petrobras chose the Carapeba field as a test site. It is a mature field consisting of three wells located in the northeastern portion of the Campos Basin, with automated subsurface sensors installed in the wells. Oil and gas companies aim to install deep-water analytical technologies while selecting effective information solutions. Operators are required to modernize their existing offshore infrastructure to exploit data through the analytical technique. For instance, Rockwell Automation cooperated with Schlumberger to develop a production advising system. The digital solution, which combines linked production technology with Schlumberger's oil and gas software, services, and domain experience, helps maximize production by linking upstream operators with essential, real-time analytics and domain insights to decrease deployment risks and costs. In December 2020, Saudi Arabia's Energy Ministry announced the discovery of four new oil and gas fields. Thus, the increasing number of offshore/deep water discoveries would create lucrative opportunities for the oilfield service market in the coming years.
The growth of the APAC oilfield service market is attributed to the increasing adoption of technologically advanced equipment for drilling operations, coupled with continuously growing oil production. China is the largest oil producer in APAC, accounting for 5 million barrels of oil per day. It contributes to a slightly more than 50% of the total production of Asia. In 2019, the country announced its plan of raising the capital investment by 20% in oil production. Further, North America and Europe are among the largest contributors to the global oilfield service market growth due to the presence of several oilfield services manufacturers in the regions. Archer; Blade Energy Partners, Ltd.; Ensign Energy Services Inc.; Halliburton Energy Services, Inc.; Nabors Industries Ltd.; Schlumberger Limited; STRATA Energy Services; and Weatherford International plc are among the top market players in North America and Europe.
Due to lockdown, key oilfield service market participants in the US have cut their workforce. Over 27% of onshore drilling rigs are still idle, and over 23% of frac crews have been idled in recent years. In addition, the oil & gas industry across the world has been hindered by the adverse effects of COVID-19 pandemic on the financial and commodity markets. As a result of government limitations on mobility in some industrialized countries, demand for oil and gas has plummeted, causing disruptions in the production and supply chain activities in the oil & gas industries. The capital market has been aggravated by the oil market crisis, prompting matured oil corporations to cancel or postpone $41 billion in scheduled capital expenditures. Furthermore, the unanticipated oil price war between Russia and Saudi Arabia has slowed the expansion of the oilfield services market. Due to the COVID-19 outbreak, the war has reduced production volume, while numerous adaptable business tactics have been implemented to improve oilfield service market potential.
The overall global oilfield service market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the oilfield service market. The process also serves the purpose of obtaining an overview and forecast for the oilfield service market with respect to all the segments. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, oilfield service market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the oilfield service market.
Companies Mentioned
- Baker Hughes Company
- Halliburton Energy Services, Inc
- Schlumberger Limited
- Nov Inc.
- Weatherford
- Petrodyn
- Archer
- Patterson-Uti Energy, Inc.
- Wireline Services Group
- Hunting
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 174 |
| Published | March 2022 |
| Forecast Period | 2021 - 2028 |
| Estimated Market Value ( USD | $ 96465.86 Million |
| Forecasted Market Value ( USD | $ 145963.08 Million |
| Compound Annual Growth Rate | 6.1% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
