“Oilfield Services Market spending will reach $110.4bn in 2019”, says Visiongain report

05 September 2019
Energy

Visiongain’s new report the Oilfield Services Market Report 2019-2029: Forecasts by Application (Onshore, Well Intervention Services, Well Completion Services, Offshore, Well Intervention Services, Well Completion Services), 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) Plus Leading Company Analysis and Regional and Leading National Market Analysis.

This latest report by business intelligence provider Visiongain assesses that Oilfield Services Market spending will reach $110.4 bn in 2019. Oilfield services include, among many others, numerous oil-related activities such as exploration, drilling, completion, stimulation, manufacturing, and intervention to accomplish multiple objectives throughout the entire life cycle of oil well exploration. In well logging, perforation, zonal isolation, well stimulation, sand washing, and setting tubing plugs, the facilities are also useful. These facilities assist operators in exploring and producing oil and gas reservoirs. It is therefore critical that you have your timescales correct and your forecasting plans ready. This report will ensure that you do. Visiongain’s report will ensure that you keep informed and ahead of your competitors. Gain that competitive advantage

The growing worldwide count of offshore rigs, which recorded an annual average of over 4.5% in 2018, combined with the important growth of current offshore wells, both in profound and ultra profound waters, especially in the South China Sea, Persian Gulf and Gulf of Mexico, is projected to drive the industry over the forecast era.

Over the forecast period, the increasing need to improve oil & gas manufacturing rates and effectiveness and mitigate gas-related capital spending is probable to fuel demand for oilfield facilities in offshore operations. The growing amount of continuing Middle East & Africa initiatives, including the areas of Maydan Mahzam and Bul Hanine, is expected to drive the market over the forecast era.

Technology and know-how are important drivers of value

Technology and know-how are important drivers of value. Over the past decade, the increase in U.S. shale play manufacturing resulted from changes in drilling techniques and technology. A considerable amount of standard vertical wells had to be drilled years ago to extract amounts that can now be obtained from fewer wells using horizontal and directional drilling techniques. In addition, drilling multiwell pads has dramatically decreased the expenses of disassembling and reassembling rigs to move to other places. In relation to these changes, seismic surveying, artificial lifting and other techniques have continuously improved over the years.

Increasing Need For Crude Oil And Natural Gas Is Estimated To Provide An Impetus To Onshore Projects In The Coming Years. 

Long-term growth in demand for refinery products is also probable to increase the region's oil & gas output. It is estimated that the growing need for crude oil and natural gas in China, Russia, and Saudi Arabia will give onshore projects an impetus in the coming years. Major industry participants such as Schlumberger Limited, Halliburton, and Baker Hughes, Inc. invest in R&D operations in numerous onshore oilfields linked to renewed projects and abandoned petroleum wells. These initiatives are expected to drive the market favorably over the forecast period.

Outsourcing acts like a driver for the service industry

The oil majors addressed the various facets of in-house activities until the 1960s and carried out in-depth studies on drilling, closure and manufacturing techniques. These were then licensed to the oilfield services businesses in the 1980s. Functions such as drilling yielded low margins and diverted operators ' attention, progressively outsourcing them to specialized firms with higher efficiency driving capacity. They urged firms to manage these services, such as drilling, reservoir engineering, procurement, construction, pipeline laying, promoting continuing manufacturing and maintenance.

Risk management partnerships is the strategy exercised by OFSE Companies

The complexity of projects and the capacity of oil-sector businesses differ extensively. The best marriage, of course, is between an operator capable of handling risk, with a powerful focus on processes and technical capacity on the one side, and a service firm similarly capable on the other. But in an sector where tiny autonomous firms have proliferated and domestic oil firms have secured most of the proven reserves, project operators are not always experienced enough to manage all technological choices during activities.

OFSE income depends strongly on E&P capital expenditure

OFSE income depends strongly on E&P capital expenditure, which in turn is strongly affected by future expectations of commodity prices. E&P companies are directly affected by oil and gas price declines as their asset values (e.g. reserves, exploration land) are based on market expectations of future oil and gas prices. The E&P sector is cyclical: there is more exploration and drilling activity as petroleum and gas prices rise, which in turn leads to enhanced supply. With this supply, unless demand increases, prices will decline and exploration activity will eventually decline. In view of this, the OFSE sector is also cyclical.

The Oilfield Services And Machinery Sector May Be Capital-Intensive

Although this depends on the sort of services provided, the oilfield services and machinery sector may be capital-intensive. For instance, drilling businesses may own land rigs, jack-ups, submersible rigs, and drilling vessels, the price of which may be significant. Lead times may be several years for some of these assets. Furthermore, a significant quantity of associated fixed assets accompanies drilling and associated services, such as drill bits, pipe, liquids, and trucks, which are also costly. In low demand periods, the value of certain OFSE companies may be restricted to the market value of this machinery.

OFSE has to demonstrate Cost efficiencies in order to keep petroleum prices low and profits high

E&P businesses strive to reduce their expenses in reaction to reduced petroleum and gas prices, which in turn put pressure on OFSE businesses to reduce theirs. A decent amount of OFSE suppliers were not as lean as they could have been due to rising demand in recent years and accelerated attempts to enter or grow the market. Companies that can find methods to cut expenses and function more effectively are therefore much more likely to survive the downturn.

Leading Regional & National Analysis

The Market In North America Is Expected To Dominate The Global Oilfield Services Market

This study analyzes the oilfield services industry for six areas, namely North America, South America, Europe, Asia Pacific, Middle East, and Africa. North America's market is anticipated to dominate the worldwide oilfield services industry, owing to enhanced oil & gas exploration & manufacturing operations, particularly in the U.S. According to the IEA, the U.S. is determined to become the net power exporter by 2020; and to meet this goal, petroleum production is increasing nationwide. Moreover, owing to the shale revolution, the US maintained its place as the top oil producer in 2018.

 With the liberalization of its national power sector, the Mexican government has lately started expanding its petroleum & gas industry. The state has implemented reforms that have brought the state-run PEMEX monopoly to an end in an attempt to attract foreign investors and operators. It is estimated that Mexico has the sixth largest recoverable shale gas reserve in the world— about 600 Tcf. Canada's oil & gas production from oil sands, tight gas, and coal natural gas coupled with U.S. shale gas operations would drive North America's oilfield services industry.

OFSE Companies Offering Full Suite of integrated services to E&P companies

The largest oilfield service companies, such as Schlumberger and Halliburton, account for a substantial portion of industry revenue. These companies offer a full suite of integrated services to E&P companies. As a result, customer relationship value can be more significant than in the smaller firms, who tend to have fewer service offerings and face greater competition in the fragmented market.

The increasing need for energy has resulted to the need for large-scale exploration operations due to the increasing population and fast industrialization. Increasing involvement to support the region's demand for energy combined with the increasing amount of deepwater findings is expected to drive the subsea segment over the forecast period. Companies like Next Geosolutions and M2 Subsea have signed an agreement to conduct subsea study activities in Scotland's Aberdeen port. Manufacturers concentrate on developing new nanotechnology-based alternatives to overcome the current technological and environmental difficulties in drilling operations.

OFRS do not invest directly in the purchase of oilfield assets, but rather assist significant oil & gas E&P businesses provide technological perspectives

The market for oilfield services involves businesses that do not invest directly in the purchase of oilfield assets, but rather assist significant oil & gas E&P businesses provide technological perspectives from seismic studies to well-finished activities. Schlumberger, Halliburton, Baker Hughes, Weatherford International, Calfrac Well Services, and Cudd Energy Services are major firms working on the market.

Schlumberger offers its clients a broad range of hydraulic fracturing products and solutions, including multi-stage fracturing solutions, coiled tube fracking, dynamic fluid diversion services for PerfFRAC shale gas and fiber fracturing solutions.

The firm recently launched Broadband Sequence, a new fracturing method that promotes the sequential stimulation of perforation clusters in unconventional reservoirs, particularly in dry-gas wells. The new method isolates fractures at the wellbore sequentially in order to fracture correctly all clusters in each area.

Leading Players

Archer Limited 
Expro International Group Holdings, Ltd. 
Technipfmc, PLC 
GE Oil & Gas  Baker Hughes Incorporated 
Halliburton Company 
Schlumberger Limited 
Weatherford International, PLC 
Superior Energy Services, Inc. 
National Oilwell Varco, Inc. 
China Oilfield Services Limited (COSL) 

The comprehensive report offers market estimation and forecast for the period ranging 2019 – 2029 for leading national markets and rest of the world. Moreover, the report contains dedicated leading companies covering 10 leading producers in the field of advanced energy storage systems.

The Oilfield Services Market Report 2019-2029 report will be of value to anyone who wants to better understand the energy storage market and its various segments. It will be useful for businesses who wish to better comprehend the part of the market they are already involved in, or those wishing to enter or expand into a different regional or technical part of the energy industry.

Notes for Editors
If you are interested in a more detailed overview of this report, please send an e-mail to sara.peerun@visiongain.com or call her on +44 (0) 207 336 6100.

About Visiongain
Visiongain is one of the fastest growing and most innovative independent media companies in Europe. Based in London, UK, Visiongain produces a host of business-to-business reports focusing on the automotive, aviation, chemicals, cyber, defence, energy, food & drink, materials, packaging, pharmaceutical and utilities sectors.

Visiongain publishes reports produced by analysts who are qualified experts in their field. Visiongain has firmly established itself as the first port of call for the business professional who needs independent, high-quality, original material to rely and depend on.

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