According to our latest market study on "Oilfield Service Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Application, Service Type," the market is expected to grow from US$ 96,465.86 million in 2021 to US$ 145,963.08 million by 2028; it is expected to grow at a CAGR of 6.1% from 2020 to 2028.
The oilfield service market is experiencing growth due to increasing exploration and production activities in response to the rising global energy demand. The market has benefited significantly from rapid technological improvements and growing urbanization and industrialization. Exploration and production (E&P) comprise the upstream portion of the oil and gas industry, which includes search, exploration, drilling, and extraction. As demand for energy increases and profitable investment opportunities in the oil & gas sector expand, the E&P sector's production and exploration activities have grown. For example, in July 2019, i3 Energy PLC awarded Baker Hughes GE, a prominent oilfield services firm, contracts totalling US$3,249,901.15 million for drilling at its North Sea Liberator and Serenity properties. The Asia Pacific region, which is becoming increasingly reliant on oil and gas imports, is boosting its offshore E&P efforts to increase local energy output and reduce reliance on imported oil and gas. As a result, increased production and exploration activities in the oil & gas sector are driving the growth of the oilfield service market.
Impact of COVID-19 Pandemic on Global Oilfield Service Market
The adoption rate of advanced technologies in North America is high due to favorable government policies that promote innovation and strengthen infrastructure capabilities. Any factor affecting industry performance in the region could hinder economic growth. However, the COVID-19 outbreak has impacted the US severely, leading to the imposition of limitations on industrial, commercial, and public activities to curb the spread of infection. The oil sector has been hit hard, facing its third price crash in the last twelve months, resulting from supply shortages, historically low demand, and a worldwide humanitarian catastrophe. While the industry has recovered from the first two shocks, the current situation differs. Job losses in the US oilfield services industry have increased, especially in Texas, Louisiana, Colorado, Oklahoma, and New Mexico. The International Energy Agency predicts that global oil, gas, and refined product output will decline by 3.4% in 2020 compared to the year before the COVID-19 pandemic. However, the reduction in Latin American oil-producing countries has been much more significant.
Key Findings of Study
The oilfield service market is categorized based on type, service type, and geography on a global scale. The type category is divided into two segments, onshore and offshore, with the offshore segment dominating the market in 2020. The service type category is further segmented into well completion, wire line, artificial lift, perforation, drilling and completion fluids, and others, with the others segment holding the largest market share in 2020. Geographically, the market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM), with Europe holding a significant share in the global oilfield service market in 2020.
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