Oilfield Services Market Analysis by Type (Equipment Rental, Field Operation, and Analytical Services); by Service (Geophysical, Drilling, Completion & Workover, Production, and Processing & Separation); and by Application (Onshore, and Offshore) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4824 | Published Date: Apr 14, 2023
The global oilfield services market size is estimated to reach ~USD 264.86 Billion by the end of 2035 by growing at a CAGR of ~6.35% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of oilfield services was ~USD 126.52 Billion. The growth of the market can be attributed to growing demand for oil. In 2022, when global oil consumption was expected to reach about 98 mb/d, growth was slightly curtailed to approximately 2 mb/d. However, in 2023, an additional about 3 mb/d increase is anticipated, driven primarily by non-OECD nations' robust growth trends. Hence, the extraction of oil is anticipated to grow further boosting the market for oilfield services.
Moreover, another two important aspects, such as reducing the price of oilfield services and raising production, have also fueled the global industry. Major upstream service providers provide a variety of tailored packages that may save operators millions of dollars. Additionally, the growing usage of hydraulic fracturing and other stimulation techniques for shale gas extraction is also estimated to support the oilfield services sector. According to the U.S. Energy Information Administration (EIA), the amount of dry natural gas produced in the United States in 2022 from shale formations was around 28.5 trillion cubic feet (Tcf), or 80% of all dry natural gas produced in the country that year.
|
Base Year |
2022 |
|
Forecast Year |
2023-2035 |
|
CAGR |
~6.35% |
|
Base Year Market Size (2022) |
~ USD 126.52 Billion |
|
Forecast Year Market Size (2035) |
~ USD 264.86 Billion |
|
Regional Scope |
|
Growth Drivers
Rising Demand for Energy to Heat Homes - 31.7% of the total energy consumed by EU households in 2020 came from natural gas. Using energy to heat homes accounted for the majority of household energy use in the EU in 2020 (62.8% of total residential energy consumption). Furnaces, boilers and space heaters all use natural gas to heat people's houses. Hence with the growing demand for energy to heat house the demand for natural gas is estimated to boost. Therefore, influencing the market growth further.
Growing Adoption of Vehicles - Over 65 million vehicles were sold globally in 2021, however about 66 million vehicles were sold globally in 2022. Hence, the demand for oil is estimated to grow further boosting the market growth.
Surge in Number of Aircraft - The general aviation fleet was estimated to have about 204,404 aircraft in the United States in 2021, a rise from the previous year. Hence, the demand for jet fuel is estimated increase. To produce jet fuel that satisfies particular military or industrial requirements, various crude oil petroleum distillation products are commonly blended and refined into naphtha, petrol or kerosene.
Growth in Government Initiatives - A reduction in excise duty of about USD 0.9 per liter for petrol and approximately USD 0.076 per liter for diesel in India was announced by the government on May 21, 2022. Hence, the demand for petrol and diesel is estimated to boost. Moreover, the Indian government approved oil and gas projects in Northeast India totaling about USD 12 billion in September 2021. By 2025, these projects are expected to be finished.
Upsurge in Drilling Activities - Almost about 17 billion barrels of recoverable oil equivalent (Bboe) has been found from approximately 177 discoveries made by new-field wildcat drilling by the end of November 2022 across the globe.
Challenges
The global oilfield services market is segmented and analyzed for demand and supply by application into onshore, and offshore. Out of which, the onshore segment is anticipated to garner the highest revenue by the end of 2035. The growth of the segment can be attributed to growing exploration and production of onshore oil and gas. Forecasts indicate that in 2025, offshore production would account for about 27% of worldwide crude oil production, with onshore production accounting for the remaining approximately 73%. Hence, this segment is anticipated to have the highest growth owing to the fact that, the method of onshore production benefits the oil and gas sector greatly. Moreover, offshore drilling has various hazard to the environment. However, onshore fracking does have some environmental drawbacks, but the oil and gas sector is currently taking action at onshore sites that should assist protect the local surroundings where natural gas and oil production are taking place. Moreover, onshore drilling makes use of locally available shales as well as other resources that make drilling sites flexible and mobile, such as skids, which make it simple to move equipment from one location to another. This lowers the installation and transportation expenses that would otherwise be significantly greater for an offshore project.
The global oilfield services market is also segmented and analyzed for demand and supply by service into geophysical, drilling, completion & workover, production, and processing & separation. Amongst which, the drilling segment is anticipated to have the significant growth over the forecast period. To produce a well for the production of oil and natural gas, a hole is created using a directional drilling tool. Owing to the growing need for oil the services of drilling is growing extensively. Oil drilling lowers the pressure in subterranean oil reserves, which significantly lowers the amount of hydrocarbon seepage and methane gas in the atmosphere. Also, increased drilling operations, according to scientific theory, might continue to improve atmospheric and aquatic conditions. Hence, the segment is estimated to grow owing to these factors, further boosting the market growth.
Our in-depth analysis of the global oilfield services market includes the following segments:
|
By Type |
|
|
By Service |
|
|
By Application |
|
The market share of oilfield services in North America, amongst the market in all the other regions, is projected to have the highest growth. North American oil and gas projects are becoming more competitive as a result of increased efficiencies and tighter supply chains, along with rising government initiatives in oil and gas sector which is further boosting market growth. As a result, drilling expenses have decreased and many projects are now feasible. Fracking, horizontal well drilling, and the recent emergence of shale plays have all contributed to a sharp rise in the demand for oilfield services in the United States region. Also, growing export of crude oil from this region is also expected to boost the market. With a production of about 3 million barrels per day (mb/d) of crude oil in 2018, Canada is a significant provider of safe, dependable crude oil to worldwide markets. Only Saudi Arabia and Venezuela have more oil reserves than Canada, which is one of the world's top oil producers. The proven oil reserves in Canada include approximately 167 billion barrels, about 163 billion of which are oil sands.
The Asia Pacific oilfield services market is estimated to be the second largest, to have the highest growth. The market for oilfield services in the Asia-Pacific region is anticipated to be driven by factors such an increase in demand for cutting-edge technology, tools, and equipment to boost the efficiency of exploration and production activities in onshore and offshore areas. Nonetheless, there has always been a large demand for oil and gas, which has fueled offshore development in Australia, Malaysia, and Indonesia. Thus, it is anticipated that during the forecast period, this would present a market opportunity. Moreover, the region's biggest oilfield services market that also includes oil and gas accumulator services is China. The nation has begun to utilize its shale gas supplies to satiate domestic demand and plans to lessen its reliance on natural gas imports. Additionally, the new reforms pertaining to the oil and gas sector are anticipated to make it simpler for private businesses to invest in this region, which is anticipated to aid in lessening the monopoly of state-owned businesses. The private sector's expanding investment is anticipated to enhance the oil and gas sector, which would in turn propel the market for oilfield services in this region.
Additionally, the market in Europe region is also estimated to have a significant growth over the forecast period. The oil and gas industry is observing scientific advancements in exploration technologies for deep-water drilling operations and project economic feasibility in this region which is estimated to boost the growth of the market. Moreover, oil companies are also increasing recovery and boosting output through contemporary technical breakthroughs. Many levels of automation are possible for offshore wells, from simple one-way monitoring to intricate subsurface controls with intelligent completions. Hence, this factor is estimated to boost the growth of the market in this region.
In order to demonstrate its commitment to the Kingdom of Saudi Arabia, Baker Hughes Company, a GE business, announced plans to erect a cutting-edge oilfield services (OFS) facility in King Salman Energy Park (SPARK). Drilling services, wireline services, and pressure pumping are three OFS product lines that the new facility was estimated to be supported, assuring high-quality service delivery and preparing BHGE for future expansion in the area.
In order to start work on the Engineering, Procurement, and Construction (EPC) agreement with Assiut National Oil Processing Company (ANOPC) for the building of the new Hydrocracking Complex for the Assiut refineries in Egypt, TechnipFMC plc has successfully fulfilled the last conditions needed.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: The major factors driving the growth of the market are growing adoption of vehicles, rising demand for energy to heat homes, surge in number of aircraft, and others.
Ans: The market size of oilfield services is anticipated to attain a CAGR of ~6.35% over the forecast period, i.e., 2023 – 2035.
Ans: Rising price of crude oil, stringent government laws on E&P activities, and surge in use of sustainable alternative are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Schlumberger Limited, Baker Hughes Company, Halliburton Energy Services, Inc., NOV Inc., and more.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, service, application and by region.
Ans: The onshore segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Submit Your Request For Proposal (RFP)
