Global Completion Equipment & Services Market - Growth, Trends, and Forecast (2018 - 2023)
Oil & gas exploration and production is a complex process that requires sophisticated technology and equipment. Besides equipment, the exploration & production companies also require certain services during exploration and drilling. Well completion process includes various steps, such as casing, cementing, open-hole completion, perforating, gravel packing, installing a production tree, stimulation, well intervention, pressure control, and pipeline and process services, to prepare a well for production. Currently, about 70% of the global oil and gas production comes from matured fields. With the majority of the global oilfield reaching maturity, exploration & production activities have been increasing, to support the current and future demand for oil and gas. Besides, with shale gas being commercially profitable for the North American region, the exploration & production activities have been increasing at a rapid pace in the region, thus driving the demand for well completion equipment & services.
Increasing Exploration & Production Activities
The increase in well exploration & development projects is fueled by the increasing demand for oil, gas, and their derivatives. North America’s vision is to increase the production of shale gas and become self-sufficient, and increase the number of matured fields. The exploration & production activities have reduced during the past few years, on account of significant dip in the oil prices, during 2014. However, steady recovery in oil prices has bolstered the exploration & production activities across the globe, since 2017. These activities are projected to increase, owing to the number of oil & gas projects anticipated to start during the forecast period. For instance, Libra field projects in Brazil, Southern Gas Corridor Project in Caspian Sea, Johan Castberg Project in Norway, Coral South LNG in Mozambique, Clair Ridge Project in North Sea, South Pars Gas Field, Phase 19 in Iran, and other projects are likely to commence during the forecast period, which is projected to drive the demand for the completion equipment & services market.
North America to Dominate the Market’s Growth
North America is projected to dominate the demand for the completion equipment & services market. Technological innovations, such as such as horizontal drilling and hydraulic fracturing, have led to robust growth in the production of unconventional fossil fuels, notably, shale gas and tight oil, in the United States and Canada. In January 2018, the active rotary rig counts in the region increased to 1261 from 1036 in January 2017. Besides, the number of active rigs for drilling horizontal wells for shale oil production has more than doubled since 2016. With increasing drilling activities, the demand for completion equipment & services for well completion has also been increasing in the North American region.
The United States to Witness Robust Growth
In North America, the United States is expected to witness robust growth during the forecast period. The United States was one of the major oil importing countries, before shale production. With shale revolution in the United States, the country has become the second largest oil producer, after Saudi Arabia. In February 2018, the United States recorded 968 active rigs. US exploration & production companies have been investing significantly on drilling and well completion projects. Permian remains an attractive basin for the exploration & production activities in the country. Moreover, the government has recently planned to open up about 98% its coastal water for drilling activities. These factors are projected to increase the demand for the US segment of the well completion equipment & services market during the forecast period.
Key Developments in the Market
July 2017: Halliburton Company announced the acquisition of Summit ESP, a leading provider of electric submersible pump (ESP) technologies and services.
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 will be called ‘Baker Hughes, a GE company’.
The major players include - Schlumberger Ltd, Halliburton Company, National Oilwell Varco Inc., Weatherford International PLC, and Baker Hughes, a GE company, amongst others.
Reasons to Purchase this Report
Current and futureglobal completion equipment & 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.
The regions that are expected to witness the fastest growth during the forecast period.
Identify the latest developments, market shares, and strategies employed by the major market players.
3 months analyst support along with the Market Estimate sheet (in excel).
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