Global Oilfield Services (OFS) Market - Growth, Trends, and Forecast (2018 - 2023)
Oil & gas exploration and production (E&P) activities are complicated processes and require sophisticated technology and equipment. Companies involved in the oilfield services (OFS) market offer the necessary infrastructure, equipment, intellectual property, and services to the oil & gas companies that help them in exploring, extracting, and transporting oil and gas to the refinery, and then, eventually to the consumer. The oil & gas market is highly volatile and cyclical. The fall in commodity prices had a ripple effect on the oil & gas value chain. Over several decades the oil & gas industry had looked to active drilling rig count creating demand for oilfield services around the world. A rise in rig count created an increase in the demand for goods and services.
Stabilizing Oil Prices Driving the Demand for OFS
The collapse in oil prices in 2014 severely undercut company revenues and forced sharp cutbacks in spending. With commodities staging a recovery, following a multi-year price rout, activity in the oil & gas sector has begun to strengthen. With oil & gas prices recovering, the oil & gas operator companies have increased investment for the development of oil & gas projects, which were earlier delayed or stalled. The oilfield service providers are expected to be benefitted from the same with increased activities on recovery. Global capital expenditure among the 100 largest countries is expected to grow around 4.3% in 2018, supporting new project investment decisions. The global oilfield services market is expected to grow significantly during the forecast period on account of the increasing need to improve productivity from mature and new reserves, increasing focus on developing unconventional hydrocarbons, and increasing investments in deepwater and ultra-deepwater projects.
North America to Continue to Dominate the OFS Industry
There has been a drastic decrease in the rig count globally since 2014, and this fall has been reflected in demand for oilfield services in the past few years, till 2016. However, the OFS market had picked up relatively well in 2017. North America still has the most number of rigs, worldwide, followed by the Middle East. With pad‐based horizontal drilling in the United States becoming more the trend, rig count on land in North America has become less meaningful. Rig efficiency is on the rise in the United States; the number of wells a rig can drill each year is increasing at a significant rate. The number of wells drilled is the accurate measure of demand for OFS. The need to improve productivity from mature and new reserves, increasing demand for energy & petrochemicals, growing investments, deep-water exploration in North & Norwegian seas. and technological advancements are some of the factors driving the OFS market.
Whereas, there is increasing investment in the Asia-Pacific oil & gas industry, promoted actively by the governments in the region. Growing urbanization in countries, such as China, India, Indonesia, etc., contributes to the increasing demand for oil and gas in this region. A growing interest in deepwater fields is also observed in the region. The most promising opportunities for the oilfield services industry is expected to come from Southeast Asia and East Africa. This is a positive driver for Asia-Pacific oilfield services industry. The growing interest in deepwater exploration in the above-mentioned regions is expected to promote the growth of the OFS industry.
Key Developments in the Market
July 2017: Halliburton Company announced the acquisition of Summit ESP, a leading provider of electric submersible pump (ESP) technology and services. The addition of Summit’s artificial lift offerings and industry-leading customer service strengthens Halliburton’s artificial lift portfolio for its global customers.
The Major Players Include - Baker Hughes Inc., Schlumberger, Ltd, Halliburton, Halliburton, and FMC Technologies, Inc., amongst others.
Reasons to Purchase the Report
Current and future 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
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-month analyst support, along with the Market Estimate sheet (in excel)
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