North America Oilfield Services Market - Growth, Trends, and Forecast (2018 - 2023)
North America is one of the largest markets for oilfield services, due to the rigorous drilling and production activity. The region accounts for around 21% and 26% of the global crude oil and natural gas production. The average breakeven price for US shale has declined by around 40% since 2013, due to technological improvement. In the United States, technological advances in hydraulic fracturing have helped operators increase shale production. Drilling activity, in 2018, is at its peak in the last two years, with the addition of 10% active rig count in the first 75 days of the year, with Canada leading the growth rate. Drilling activity in Mexico has still not picked up, and is the lowest in the past 22 to 23 years, and hence, there is lower demand for oilfield services in the country.
Reformation in Mexico’s Oil & Gas Industry is expected to Drive the Market
Mexico’s crude oil production has been declining since 2005, due to the natural decline in mature fields and lack of significant start-ups to compensate. The daily production in 2016 was around 34% less than that 2005. The revenue from the sector has decreased significantly during the same period. The Mexican government in 2013 ended the seven-decade monopoly Pemex, a state oil firm, and opened its energy sector for private investment. The government is planning to auction several offshore fields in the coming years for exploration, which is expected to attract foreign players and drive the oilfield services market.
United States is the largest Market for Drilling Oilfield Services
As of February 2018, the United States has 968 active rigs and more than a million producing wells, and it is one of the largest markets for drilling oilfield services in the world. Drilling activity in the United States, in 2018, seems to be positive with the addition of 51 active rig count in the first 40 days of 2018. Permian is the largest hotspot for upstream activities in the country, and other regions are also growing significantly. Also, the government has opened around 98% its coastal waters for drilling, which was earlier not allowed. As a result, the drilling activity is expected to further increase in the country. With the increase in drilling activity, demand for oilfield services market is poised to grow.
Key Developments in the Market
July 2017: General Electric completed its buyout of Baker Hughes Inc., merging it with its own oil & gas equipment and services operations, to create the world's second-largest oilfield service provider by revenue. The new company is named "Baker Hughes, a GE company“.
January 2017: Schlumberger acquired Peak Well System, which is a specialist in the design and development of advanced downhole tools for well intervention, flow control, and well integrity.
The major players include - Schlumberger Limited, Weatherford International PLC, Baker Hughes A GE Co., Halliburton Company, National Oilwell Varco, amongst others.
Reasons to Purchase this Report
Current and future North America 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
Countries that are expected to witness the fastest growth during the forecast period
Identify the latest developments and strategies employed by the major market players
3 months analyst support, along with the Market Estimate sheet (in excel)
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