Asia-Pacific Oilfield Services - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Asia-Pacific Oilfield Services - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Asia-Pacific oilfield services market is expected to grow at a CAGR of over 3% during the forecast period. Factors such as an increase in demand for advanced technology, tools and equipment to increase the efficiency of exploration and production activities in onshore and offshore areas are expected to drive the market for oilfield services in Asia-Pacific region. Moreover, several governments in the region 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. The challenge, however, is the volatile oil prices over the recent period, owing to the supply-demand gap, geopolitics and several other factors have been restraining the growth in the Asia-Pacific oilfield services market.

Key Highlights

• Drilling Services are expected to lead the market for oilfields services, reasons being an increase in exploration activities in several Asia-Pacific countries and massive development of shale plays, particularly in China. With wells being drilled going farther away from land and into the sea and being drilled deeper than before the market for oilfield services is expected to grow in the forecast period.
• The demand for oil and gas production have always been on an increase, which have led to increased exploration activities in offshore, in Australia, Malaysia and Indonesia. This in turn is expected to act as opportunity for the market during the forecast period.
• China is expected to be the largest market for oilfield services, owing to increased investment to meet the increasing demand for energy in the country.

Key Market TrendsDrilling Services to Dominate the Market

• Drilling services make up for the biggest share in oilfield services market, with drilling and completion services combined accounting for over 50% of the market. Moreover, the average rig count in Asia-Pacific has seen a steady increase during the past five years.
• The oil and gas production have always been on an increase even when oil prices went down in 2014 because of the ever-increasing demand of oil and gas. This, in turn, requires for an increase in oilfield services for more production from existing and new wells, signifying an increase in oilfield services market in Asia-Pacific.
• In 2019, India’s state-owned company ONGC announced that it had allotted INR 6,000 crore in drilling 200 wells over the next seven years in Assam to increase the output from the state. The wells are expected to be drilled during the next seven years, hence increasing the demand for oilfield services market during the forecast period.
• Several offshore drilling projects in Australia, Malaysia and Indonesia have augmented the number of activities in the region, further promulgating the demand for oilfield services.
• Hence, with the new investment in oil & gas industry, increasing exploration of unconventional resources, and the crude oil price stability, which in turn are expected to increase the demand for oilfield services market in Asia-Pacific.

Increasing Demand from China is Expected to Drive 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 national oil companies and state-owned energy companies to optimize extraction action plan for ensuring increasing domestic natural gas production.
• The new reforms related to oil and gas industry are expected to make it easier for private companies to invest in the country, which, in turn, is expected to help reduce the monopoly of state-owned companies. Growing investment by the private sector is expected to improve the oil and gas industry, in turn driving the oilfield services market in the country.
• Moreover, owing to air pollution and environmental concerns, the country is employing policies to increase the share of the gas, and reduce the share of coal in the total energy mix. Hence, with increased exploration and production activities, supported by government initiatives, China is expected to drive the demand for oilfield services in Asia-Pacific.

Competitive Landscape

The Asia-Pacific oilfield services market is fragmented. Some of the key players are Schlumberger Ltd., Baker Hughes Co., Halliburton Co., National Oilwell Varco Inc., and Weatherford International plc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Schlumberger Ltd.
Baker Hughes Co.
Halliburton Co.
National Oilwell Varco Inc.
Weatherford International plc.
Petrofac Limited
Superior Energy Services Inc.
Expro Group
Archer Limited

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