Global Oilfield Equipment Rental Services Market - Growth, Trends, and Forecast (2018 - 2023)
Decreasing breakeven oil prices, growing investments in upstream oil & gas sector, and stability in oil prices are expected drive the upstream oil & gas activities, in turn, driving the oilfield rental equipment market during the forecast period.
Growing Offshore Activity to Drive the Market
Since the oil price crisis in mid-2014, the offshore activities have declined significantly. But during 2016-17, with stability in oil price, the offshore drilling activity stabilized. During 2014-17, the breakeven oil prices for offshore production had declined significantly. For instance, some of the North Sea fields’ oil production now breaks even at as low as USD 25 per barrel. During the forecast period, the offshore oil production cost is expected to further reduce, owing to technological development and focus on efficient operations. The oil prices are also forecasted to witness a substantial increase during the next five years. Hence, increasing oil prices and lower offshore production breakeven costs are expected to drive the offshore oil & gas activity. The offshore operations are complex in nature, and hence, require sophisticated equipment. As a result, the spending on rental equipment for offshore operations is significantly higher than for similar onshore operations. Therefore, the growing offshore activities is expected to have a substantial positive impact on the market during the forecast period.
North America is Expected to Lead the Market During the Forecast Period
The production in the two major fields in the US, Permian Basin of Texas and Gulf of Mexico has registered a CAGR of about 13.5% during the 2014-17 period. The US government has also announced that it plans to open almost all the US waters for exploration & production activities. Canada, with stability in oil prices, is expected to experience increasing investments in the oil & gas industry, allowing private players to explore some of its most prominent oil sand reserves. The growing production from existing fields and government policy to encourage upstream activity in the United States and expected growth of upstream industry in Canada are expected to drive the oil & gas activities, in turn, driving the oilfield equipment rental services market in the region.
Saudi Aramco’s Investment Plans to Drive the Market in Saudi Arabia
Saudi Aramco, the government-owned oil company, is responsible for all exploration, drilling, and production activities in Saudi Arabia. The company has planned to engage itself in oil exploration and development, to compensate for declining fields in the country. In July 2017, Saudi Aramco announced plans to invest USD 300 billion in the oil & gas sector over a decade. The investment is aimed at maintaining the status of Saudi Arabia as the global leader in oil production capacity. Saudi Aramco’s investment plans are expected to drive the oil & gas upstream activity in the country, which, in turn, is expected to drive the market during the forecast period.
Key Developments in the Market
November 2017: OLIO Resources Sdn Bhd and Tasman Oil Tools formed a joint venture, OLIO Tasman Oil Tools Sdn Bhd. The joint venture company will supply drilling rental tools, wellbore clean up, and pressure control solutions to oil & gas operators in Southeast Asian region.
The Major Players Include - Halliburton Company, Schlumberger Ltd, Tasman, Weatherford, Superior Energy Services Inc., Precision Drilling Corporation, Parker Drilling, Basic Energy Services, Oil State International, Inc., and AOS Orwell Ltd, amongst others.
Reasons to Purchase the Report
Current and future oilfield equipment rental 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.
Regions that are expected to witness fastest growth during the forecast period.
Identify the latest developments, market shares, and strategies employed by the major market players
3-month analyst support, along with the Market Estimate sheet (in excel)
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