The global oilfield service market accounted for a value of US$ 250 Bn in the year 2018 and is estimated to reach US$ 330 Bn by 2026. The global market for oilfield service is anticipated to post a steady CAGR of 3.7% during the forecast period. Fortune Business Insights recently published this information in a report, titled “Oilfield Service Market Size, Share and Global Trend by By Service (Seismic Service, Drilling Service, Completion & Workover Service Production Service, Processing & Separation Service, Others), By Application (Onshore, Offshore), and Geography Forecast till 2026.” The growing advancements in technology is the chief factor driving the oilfield service market. Several oilfield services across the world use these improved tools and technologies to enhance their E&P activities in offshore and onshore areas.
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“The oilfield operators are compelled to explore offshore resources as the resources on onshore areas are depleting,” said a lead analyst at Fortune Business Insights. “Although the offshore resources are expensive, still their demand is expected to increase in the coming years,” he added. In addition to this, this segment is likely to be the fastest growing on account of the rising investments in subsea O&G assets. These investments are projected to augment the oilfield service market during the forecast period between 2018 and 2026.
North America to Remain Dominant and Offer Huge Growth Opportunities
Among regions, North America is expected to account for a major share in the global oilfield service market by 2026. Moreover, the U.S. covered a share of around 50% in the year 2017. The rising demand for oilfield services in the U.S. includes directional and horizontal drilling activities, primarily owing to the presence of shale gas reservoir. Another reason responsible for the growth of oilfield services in this region is the rising number of deep-water projects especially in the U.S. The market in Asia Pacific is also expected to grow at a significant rate owing to factors such as increasing number of offshore activities especially in China and rising number of oil rigs.
Discovery of New and Improved Oil and Gas Fields to Spur Growth
The report observes that the discovery of new oil and gas fields is expected to fuel demand for oilfield services especially from sectors such as power plants and transportation. Over the past few years, there has been a significant increase in the extraction of oil and gas resources such as natural gas and crude oil. This rise, as per the report is another factor driving the oilfield service market. The oil and gas sector is revolutionizing owing to the enhanced oil recovery or EOR technique which involves chemical injection, gas injection, and thermal injection techniques. This is further expected to fuel demand for oilfield equipment, thus transforming oilfield services industry outlook. Technologies such as remotely operated vehicles or ROVs and robotic oil rigs may facilitate the development of offshore oilfields, thereby driving the oilfield service market.
Strategic Alliances between Companies Intended to Upscale their Operations
The highly fragmented O&G service industry witnesses the presence of several leading players in the oilfield service market. Companies are forging strategic alliances and involving in M&A activities to improve their market share. Presently, Schlumberger is leading the global oilfield service market in terms of revenue. Moreover, a few days ago, the company signed an earn-in-agreement with Pure Energy Minerals Ltd. The agreement was signed with an aim to develop the later company’s lithium project in Clayton’s valley of Nevada.
Another company called TAQA Drilling in Saudi Arabia has recently announced acquisition of Schlumberger’s onshore drilling business in the Middle East. The objective of TAQA is to become one of the leading oilfield services company in Asia Pacific by 2021. Some of the other leading players operating in the global oilfield service market include National Oilwell Varco, Halliburton, Baker Hughes, Oil States Industries, Transocean, SGS S.A., Weatherford International, Fluor, BJ Services Company, Weir Oil and Gas and China Oilfield Services Ltd., Petrofac, and Saipem.