Oilfield Services Market

Oilfield Services Market

Market Synopsis

Global Oilfield Services market is valued at USD 272.45 Million in 2022 and is projected to reach a value of USD 421.31 Million by 2030 at a CAGR of 5.60% over the forecast period.

Oilfield service is the term used for the services provided and the equipment used during activities related to oil and gas production. Oilfield service covers a range of aspects, including the application of drilling fluids, completion fluids, and remedial fluids. This also includes sand and mud cleaning, transportation of water, materials and equipment, equipment maintenance, and oilfield production and exploration. The market for Oilfield Services is expected to rise during the forecast period owing to the factors including rising demand for Oilfield Services from the on-going shale oil and natural gas production. Furthermore, increasing exploration of shale oil as a substitute for crude oil and high demand for production of biofuels is further expected to support Oilfield Services market growth.

The global market has been driven by two key factors such as lowering the cost of Oilfield Services and increasing production. Additionally, the range of customized packages provided by major upstream service companies can save operators’ millions of dollars. The Oilfield Services market will be bolstered by the increasing use of hydraulic fracturing and other stimulation techniques for shale gas extraction.

Market Segmentation:

The Oilfield Services market is segmented on the basis of type, service, application, and region. By type, the target market is segmented as equipment rental, field operation, and analytical services. Based on service, the global Oilfield Services market is segmented as pressure pumping services, oil country tubular goods, wireline services, well completion equipment & services, well intervention services, drilling waste management services, drilling & completion fluid services, and coiled tubing services. Based on application, the target market is bifurcated as onshore and offshore.

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The offshore segment holds the largest market share in terms of revenue during the forecast period

Offshore segment is fastest-growing segment of oilfield service market and is expected to maintain its dominance in the near future owing to growing investment in subsea oil & gas assets. The major factors driving the growth of the market include rise in the demand for offshore products as they assist in minimizing energy cost and also provide a secure platform to store gas and oil. This also further aids in increasing the efficiency factor, improving well productivity, reservoir performance, and overall life cycle of the well. It is also a low stress environment for offshore operations and provides safety and security at all times. Increasing investment in the offshore sector helps fuel market growth. As an example, the offshore greenfield investment reached USD 93.3 billion in 2019, up from USD 61.5 billion in 2018. Thus, the high offshore investment profile is spurring the demand for OFS, which in turn serves to expand the market.

Drilling Services holds the largest market share during the forecast period

Drilling services are expected to dominate the oilfields services market owing to the recent increase in exploration activities and mass production of shale gases plays. The global economy is expected to support a major increase in oil demand. Strong economies are expected to consume more oil, and demand is expected to grow by an average of 1.2 mb/d per year in forecast period. At the same time, conventional fields have begun to show signs of maturity, resulting in increasing pressure among the top oil and gas operating companies to increase production and meet the growing energy demand. Therefore, other drilling services such as offshore contract drilling, rental of directional drilling tools, measurement while drilling (MWD), and logging while drilling (LWD) are expected to see positive demand.

North America region dominated the Oilfield Services Market during the forecast period

Oil and gas projects in North America are becoming more competitive, due to improved efficiencies and tightening of the supply chain. This has led to lower drilling costs and has made a lot of projects practicable. The recent development of shale plays, horizontal drilling of well, and fracking has resulted in a massive increase in Oilfield Services in the United States region. After Venezuela and Saudi Arabia, Canada has the third-largest crude oil reserves in the world, with 96% of oil sands. The oil available in the country is of high density and contains high sand particles. Due to this, oil transport from the bottom hole of the oil well to the surface requires high pressure and well bore intervention, thus increasing the demand for Oilfield Services in the country. Therefore, North America market is expected to dominate the Oilfield Services (OFS) market during the forecast period.