Global Pressure Pumping Market - Growth, Trends, and Forecast (2018 - 2023)
The average wellhead breakeven cost of oil production from shale plays has dropped significantly since 2013, owing to technological advances in hydraulic fracturing and structural changes made by the operators, such as focusing their drilling operation in the best acreage. This development is expected to drive the drilling and production activities in shale plays, in turn, supporting the demand for pressure pumping services for hydraulic fracturing. The growing drilling activity, reduced breakeven price of shale oil, and expected growth in demand for shale gas are expected to be the major drivers of the market, during the forecast period.
Growth in Offshore Activity to Drive the Market
Since the oil price crisis in mid-2014, offshore activity has declined significantly. But during 2016-17, owing to stability in oil price, offshore drilling activity has also stabilized. During 2014-17, the breakeven oil prices for offshore production have declined significantly. For example, some of the North Sea fields’ oil production now breaks even at, as low as USD 25 per barrel. During the forecast period, offshore oil production cost is expected to further reduce, owing to technological development and focus on efficient operations. The oil prices are also forecast to witness a substantial increase during next five years. Hence, increasing oil prices and lower offshore production breakeven costs are expected to drive the offshore drilling activity. Offshore pressure pumping operations are more complex than onshore operations. The offshore well depths are generally higher, and as a result, larger temperature and pressure changes are encountered throughout the well. The offshore cementation and other pressure pumping jobs are considerably more expensive. Hence, growth in offshore drilling activity is expected to have a significant positive impact on the market.
Asia-Pacific to Register Significant Growth
China and India are expected to drive the market during the forecast period. The drilling activity in China and India after the oil price crisis in mid-2014 has remained relatively stable. This is because both the countries are some of the largest consumers and net importers of oil and gas. To reduce imports, governments of both countries are encouraging exploration & production activities. During the forecast period, the increasing oil prices and growing oil & gas consumption is expected to drive the drilling activities in both of the countries, in turn, driving the pressure pumping market in the region. In addition, China has recently started exploring its unconventional reserves. Sinopec Ltd, reported that Fuling shale gas field in Southwestern China produced a cumulative 3.76 billion cubic meter (bcm) of gas in 2016. The reserve has an additional producing capacity of 5.5 to 6.5 bcm. With growing consumption of gas in the country, the drilling activity in shale gas fields is expected to increase, driving the demand for pressure pumping services, particularly for hydraulic fracturing in the region, during the forecast period.
The United States to Lead the Market Growth
The United States is estimated to have the largest market share of pressure pumping services market. The United States has the highest number of active drilling rigs, i.e., 946 as of January 2018. The 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, in turn driving the pressure pumping services market.
Key Developments in the Market
June 2017: Trican Well Services acquired Canyon Technical Services, an oilfield services company. Canyon Technical Services provides cementing, hydraulic fracturing, CTU, and acidization services. The acquisition strengthens Trican Well Services’ product & service portfolio.
The major players include - Advanced Cementing Services Inc., Baker Hughes A GE Co., BJ Services, Calfrac Well Services Ltd, China Oilfield Services Limited, Eneroil Offshore Drilling Ltd, amongst others.
Reasons to Purchase This Report
Current and future pressure pumping 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 months analyst support, along with the Market Estimate sheet (in excel)
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