Global Wireline Services Market - Growth, Trends, and Forecast (2018 - 2023)
Growth in drilling and oil production activities, declining breakeven oil & gas price, recovery in oil prices, technological advancements, and change in operator’s drilling strategy are expected to drive the demand for wireline services during the forecast period.
Change in Drilling Strategy is Expected to Drive the Logging Wireline Services Market
Oil price crisis after mid-2014 forced operators, worldwide, to cut down on operational costs in order to reduce oil & gas production breakeven price. For example, in the United States, shale oil breakeven prices have reduced by more than 50%, during 2013-17. Some of the offshore oil fields in the North Sea, now break even at as low as USD 25 per barrel. Five billion barrels of pre-sanctioned offshore oil & gas reserves, globally, now breakeven at USD 50 per barrel or lower. The reduction in oil production costs is due to better process efficiency and cost savings through sustainable exercises, such as major changes in drilling strategy, to optimize the production. Due to the scenario of lower oil price, this trend is expected to continue. To optimize drilling, data acquisition, such as logging data, is necessary. Therefore, the increasing trend toward optimized drilling is expected to drive the market during the forecast period.
Rising Number of Projects to Drive the Market in Europe
The 29th Licensing Round in the United Kingdom, which culminated in March 2017, saw the UK Oil and Gas Authority offer 25 licenses for 111 blocks and part blocks to 17 companies. Healthy interest in a combination of the frontier and mature acreage across the UKCS, from both larger companies and smaller independents, is expected to drive momentum for greater exploration & production activities. In 2016, 36 exploration wells were drilled in the Norwegian continental shelf, with 18 discoveries made. The growth of resources from these discoveries was about 58 million standard cubic meters of oil equivalent. Most of the discoveries were small and near existing or planned infrastructure. With the incremental opening of the Norwegian and Barents Sea areas for exploration and development, and technological advances that facilitate activities in these challenging areas, drilling activities in Norway are expected to remain at a healthy level for the foreseeable future. The growing number of exploration and production projects in the major oil-producing countries are expected to drive the wireline services market in the region.
Gas Consumption and Exports to Drive the Market in Australia
During 2010-16, Australia’s oil consumption declined by about 25%, while oil production remained stable. Gas production and consumption, on the other hand, has seen significant growth. During 2009-16, the gas production in the country almost doubled. Gas consumption during the same year increased by more than 30%. During 2015-16, Australia’s LNG Exports increased by 49%. In 2016, Australia was the biggest LNG exporter in Asia-Pacific region. Major importers of the Australian gas are China and Japan. Gas exports are expected to grow, mainly due to the increasing demand from China. With growing demand, the investment in the upstream gas sector is expected to increase, which in turn is expected to drive the market in Australia.
Key Developments in the Market
September 2017: Repsol SA awarded Archer a services contract. This is the second contract between the two companies. According to the contract, Archer will provide the services related to perforating, washing, and cementing operation, wireline operations, and downhole mechanical bridge plugs.
The major players include - Baker Hughes A GE Company, Halliburton Company, Superior Energy Services, Schlumberger Limited, SGS SA, amongst others.
Reasons to Purchase This Report
Current and future wireline 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 months analyst support, along with the Market Estimate sheet (in excel)
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