Asia-Pacific Oilfield Services Market - Growth, Trends, and Forecast (2018 - 2023)
The Asia-Pacific oil & gas industry showed signs of revival in 2017, as crude oil prices recovered, followed by recovery in the oilfield services market. Australia, India, Indonesia, and China led drilling activities in the region, in 2017. Indonesia and Malaysia are expected to hold an auction for several oil & gas fields for exploration. India and China are the largest consumers of oil & gas in the region, and are planning to reduce dependency on oil & gas imports respectively, and increase domestic output to meet the increasing demand for fuel. As a result, oil & gas activity is expected to increase, and as a result, the oilfield services market is expected to grow.
Increased Activity in Offshore Areas Driving the Market
The outlook for offshore oil & gas sector is expected to be positive in 2018. Chinese oil & gas state-owned company, CNOOC, is planning to drill 132 exploratory wells and acquire approximately 19,000 sq km of 3D seismic. ONGC, an Indian state oil & gas firm has made a discovery of natural gas in the Gulf of Kutch, and is expected to start production within 2-3 years. Reliance Industries and its partner BP submitted a USD 2-2.5 billion plan to bring the deepest gas discovery of India to production by 2021-22. Increased activity in the offshore areas of the region is expected to drive the market.
China to Account for Largest Share in the Market
China is the largest market for oilfield services in the region. The country is planning to reduce the dependency on natural gas import, and has started to exploit its shale gas reserves to meet domestic demand. Sichuan province, the most important area for shale gas, is expected to produce more than 4.5 billion cubic meters of gas in 2018, increasing the demand for hydraulic fracturing. The country has urged NOC’s and state-owned energy companies to optimize extraction action plan for ensuring increasing domestic natural gas production. Other countries, such as India, are planning to reduce crude oil imports by 10% by 2022, from the 2017 level. Also, the Indian government has made the entry of foreign companies comparatively easy as per the new licensing policy. As a result, both China and India provide ample opportunity for oilfield service providers.
Key Developments in the Market
July 2017: General Electric completed its buyout of Baker Hughes Inc., merging it with its own oil & gas equipment and services operations to create the world's second-largest oilfield service provider by revenue. The new company is named "Baker Hughes, a GE company“.
January 2017: Schlumberger acquired Peak Well System, which is a specialist in the design and development of advanced downhole tools for well intervention, flow control, and well integrity.
The major players include - Schlumberger Limited, Weatherford International PLC, Baker Hughes A GE Co., Halliburton Company, National Oilwell Varco, amongst others.
Reasons to Purchase this Report
Current and future Asia-Pacific oilfield services market outlook in the developed and emerging markets
Analyzing various perspectives of the market with the help of Porter’s five forces analysis
The segment that is expected to dominate the market
Countries that are expected to witness the fastest growth during the forecast period
Identify the latest developments and strategies employed by the major market players
3 months analyst support, along with the Market Estimate sheet (in excel)
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