Global Seismic Services Market - Analysis of Growth, Trends and Forecasts (2018 - 2023)
Seismic Services are witnessing strong demand from activities ranging from exploration and production to monitoring reservoir life, hydraulic fracturing, waste injection, underground gas storage and mining, and others. In order to cater to growing needs, advanced seismic technologies are evolving, and can provide seismic images with high clarity, and deliver with the utmost speed, efficiency, and HSE sensitivity. The seismic services market is now witnessing a steady growth in the 4D survey technology and multi-client seismic projects across the globe. North America dominated the global market for seismic services, with almost 23% of the market share in 2016, and it is expected to dominate the market during the forecast period.
Quest for Shale Gas - Driving the Seismic Services Market
Globally, tapping the vast unconventional shale gas reserves has emerged as an answer to the growing energy needs. Encouraged by the US shale gas boom, countries across the globe with vast shale reserves, such as Canada, Argentina, China, Brazil, and others, have undertaken encouraging steps to increase oil & gas production from shale formations. However, shale gas extraction remains a complicated process, which requires high-precision seismic survey to make an accurate description of the reservoir characteristics, and distribution pattern of shale gas sweet spots. Furthermore, the need to develop reserves of oil and gas, from shale formation, requires the use of oilfield chemicals for hydraulic fracturing and horizontal drilling processes. This supports the need for seismic services, due to HSE sensitivity as well. Thus, the demand for seismic services is expected to remain high during the forecast period, due to a large number of scheduled shale gas exploration and development activities across the globe.
North America to Dominate the Market Growth
The North American region is expected to dominate the demand for seismic services during the forecast period, due to increasing commitment to ramp up domestic oil & gas production from its unconventional reserves, and the proposed plan to open up 90% of the Outer Continental Shelf, off the US coast. The Middle East & African region is expected to register one of the highest CAGR in the global seismic services market during the forecast period.
Increasing Exploration Activities Driving US Seismic Activities
The exploration and production activities for unconventional resources, such as shale oil/gas and tight gas, are expected to remain high during the forecast period. According to the US Energy Information Administration, the GOM production in 2016 set annual high of 1.6 million barrels per day (b/d), surpassing the previous record set in 2009 by 44,000 b/d. Market conditions improving significantly amid rising oil prices, coupled with the support of a new and favorable administration with pro-energy policies, which understands the strategic importance of a healthy oil & gas industry, exploration and production activities are expected to further supplement the US seismic activities. In 2016, the BOEM released the Proposed Final Program (PFP) for the US Outer Continental Shelf (OCS) Oil and Gas Leasing Program for 2017-2022. The program includes 11 lease sales across four planning areas, 10 targeting the Gulf of Mexico and one in the US Arctic region. With US producers focusing on increasing production from existing fields and growing seismic applicability across the field lifecycle, the demand for seismic services is expected to surge further during the forecast period.
Key Developments in the market
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook