Global Oilfield Equipment Market - Segmented by Location of Deployment, Equipment Type, and Geography - Growth, Trends, and Forecast (2018 - 2023)
Crude oil prices have eased in the past few months and are enough to support the demand for oilfield equipment in the industry. However, the impact of rise in prices have not been universal, with latest development suggesting a surge in the US onshore output (mainly from the shale reserve) and comparatively less activity elsewhere, especially in offshore. The decline in crude oil prices has forced the oil & gas companies to invest in technology to reduce the breakeven prices and change their strategy, which has helped several marginal projects to become viable. As the crude oil prices are increasing and has already crossed USD 70 per barrel mark in May 2018, the upstream investment is expected to grow significantly and bring several projects online, thereby, driving the market.
In response to the downturn in crude oil prices in the past few years, the oil & gas companies not only reduced their activity level but also implemented sweeping efficiency programs to lower the operating cost. Operating cost in Norway has reduced by 30% during 2014-2017. Drilling an exploratory well in Norway’s offshore was half in 2017, as compared to 2014. The unit operating costs in the UK Continental Shelf has reduced by around 50% in the past two to three years. Other countries, such as United States has also witnessed similar trends. The lower operating cost coupled with rising crude oil price is expected to make several marginal projects economically viable during the forecast period.
North America is one of the Largest Market
North America is one of the largest market for oilfield equipment, driven by the increasing E&P activity in the US. The US rig count has increased by 9% in the first four months of 2018 and accounts for one of the largest share in the global active rig count. Hydraulic fracturing is the major reason behind the success. Also, the share of North America in global crude oil production has increased from 18.5% in 2001 to around 21% in 2017, which has resulted in increased demand for oilfield equipment in the region. Further, as the drilled wells are ready for production, the demand for oilfield equipment is expected to increase.
On the other hand, Mexico’s crude oil production has been on decline since 2005 and to address the decline, the government had introduced energy reforms in 2014 ending the 75-year monopoly of PEMEX, a state owned oil & gas company. The Mexican government has offered several blocks for exploration in the past few years. The liberalization of the upstream sector has led to entering of 70 oil & gas operators in the country after several biddings for blocks. This is expected to create ample opportunity for oilfield equipment market in the long run.
Norway’s Oil Industry Back on its Feet
The oil & gas industry in Norway has started recovering from the decline in crude oil production, which started since the start of the century. But in 2014, the trend changed, and production increased. Spending of oil companies increased for the first time in 2017 since crude oil price collapse in 2014. Further, the production is expected to ramp up in Norway after the Johan Sverdrup field, one of the major fields, starts production in 2020. Further, in the UK several projects operated by Shell, Alpha Petroleum, and other companies are expected to come online during the forecast period. As a result, increase in oil & gas activity in the region is expected to drive the demand for oilfield equipment.
The major players include - Halliburton Company, Schlumberger Limited, Baker Hughes A GE Co., Weatherford International plc, Tenaris SA, TMK Ipsco Enterprises Inc., National Oilwell Varco, Inc., Vallourec SA, Aker Solutions ASA, Stabil Drill, among others.
Reasons to Purchase this Report
Current and future oilfield equipment 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, and strategies employed by the major market players
3-month analyst support, along with the Market Estimate sheet (in excel)
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