Global Open Hole Logging Services Market - Growth, Trends, and Forecast (2018 - 2023)
Open hole logging provides good data quality and comprehensive data collection. But higher chances of losing the equipment and larger rig downtime make the open logging services more expensive. Therefore, these logging services are generally preferred in the oil and gas fields, where limited data is available or when more detailed reservoir data is required for taking major decisions on oil field development strategy. The growing drilling activity, increasing smart well completion projects, technological advancements in the open hole logging, and increasing exploration and production activity in rough geological terrains, are expected to drive the market during the forecast period.
Growing Drilling Activity to drive the Market
During 2016-17, the average rig count had increased by about 27%. The growth in the rig count is due to operators’ increased profit margins during the period. The increased profit margins were due to the increase in oil prices after 2016, and reduction in the breakeven oil prices in the majority of the oil and gas fields, caused by the better process efficiency and cost savings through sustainable exercises, such as major changes in drilling strategy to optimize the production. The growth in drilling activity is expected to drive the open hole logging market during the forecast period.
Increasing Number of Smart Well Completion Projects - Accelerates the Market Growth
In order to increase the productivity of the well, operators are increasingly opting smart and complicated well completion. The open hole logging provides data before well completion process, and hence, helps with well completion decisions. With the increasing well completion complications, the demand for open hole logging data is expected to increase, in turn, driving the market during the forecast period.
North America to Lead the Market during the Forecast Period
North America has more than a million producing wells. The United States had the largest market share in the region. The country had the highest number of active drilling rigs, i.e., 946, as of January 2018, highest in the region. US government policies, such as allowing exploration & production activity in almost all the US waters, increasing production in Permian basin and the Gulf of Mexico, decreasing oil breakeven price in shale plays, and increase in oil prices after 2016, are expected to drive the drilling and production activity in the country. Canada has huge reserves of sand oil and are open for exploration to domestic and foreign investors. Apart from that, Canada is also exploiting its shale reserves, the only country to do so after the United States. Shale accounts for 8% of Canada’s total crude oil production. Several domestic and foreign players are actively exploiting the country’s shale reserves. As a result, Canada provides ample opportunity for wireline logging service companies to expand their market in the country. Growing upstream activity in the United States and Canada is expected to drive the open hole logging market in the region.
Saudi Aramco 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 international companies have access to oil fields in Saudi Arabia through joint ventures with Saudi Aramco. In July 2017, Saudi Aramco announced the plans to invest USD 300 billion over the next decade. The heavy investments by Saudi Aramco are expected to drive the drilling and production activity in Saudi Arabia, in turn, driving the open hole logging market in the country during the forecast period.
Key Developments in the Market
June 2017: ExxonMobil announced the plans to triple the oil production in Permian Basin in the US to 600,000 barrels per day by 2025. The company also has plans to increase the tight oil production by fivefold from Delaware and Midland basins during the same period.
The major players include - Baker Hughes, A GE Co., Schlumberger Limited, Halliburton Company, Nabors Industries Ltd, Weatherford, Superior Energy Services, Inc., OilServ, China Oilfield Services Market, RECON Petrotechnologies Ltd, and Pioneer Energy Services, amongst others.
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Current and future global open hole logging services market outlook in developed and emerging markets
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The segment that is expected to dominate the market
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