oilfield service Market

The oilfield service market was valued at US$ 96,465.86 million in 2021 and is projected to reach US$ 145,963.08 million by 2028; it is expected to grow at a CAGR of 6.1% from 2021 to 2028.

The global economy is expected to drive a significant rise in oil demand, with strong economies likely to consume more oil. It is projected to increase at 1.2 million barrels per day per year from 2020 to 2024. By 2023, more than half of the global oil demand will come from India and China. As a result, major oil and gas companies face mounting pressure to expand production to meet the growing energy needs. With conventional oil fields reaching maturity, some companies have shifted their focus toward exploiting unconventional deposits. Hence, alternative drilling services like onshore contract drilling are anticipated to favorably impact the oilfield service market during the forecast period.

The global oilfield service market is expected to be driven by surging global energy consumption, growing technological advancements in the oilfield, increasing productivity from mature deposits, and rising investments in deep-water exploration projects. Moreover, an increase in deep-water exploration and production activities in the Gulf is predicted to drive the demand for drilling over the projected period.

The oil and gas industry is witnessing significant advancements in exploration technologies for deep-water drilling activities, which are contributing to project economic viability and improved recovery rates. These technological improvements allow oil companies to increase their productivity and accelerate output. Offshore wells now feature a range of automation, from basic one-way monitoring to complex subsurface controls with intelligent completions. Petrobras, for example, has launched a corporate program called GeDIg to explore, develop, and implement digital integrated field management across its production assets, with the Carapeba field serving as a test site. The field has automated subsurface sensors installed in its three wells. Oil and gas companies are looking to deploy advanced deep-water analytical technologies and information solutions to modernize their offshore infrastructure and leverage data analytics to increase efficiency. For example, Rockwell Automation partnered with Schlumberger to develop a production advising system that integrates production technology with Schlumberger's software, services, and domain experience to help upstream operators improve production and reduce deployment risks and costs. Moreover, the recent discovery of four new oil and gas fields by Saudi Arabia's Energy Ministry in December 2020 indicates that the number of offshore and deep-water discoveries is increasing, which is expected to create lucrative opportunities for the oilfield service market in the future.

The growth of the APAC oilfield service market is driven by the increasing adoption of advanced drilling equipment, along with the continuous growth in oil production. China, which accounts for over 50% of Asia's oil production, is the largest oil producer in the APAC region, producing 5 million barrels of oil per day. In 2019, China announced its plan to increase its capital investment in oil production by 20%. In addition, North America and Europe are major contributors to the global oilfield service market, as they host several oilfield service manufacturers. Some of the top players in these regions include Archer, Blade Energy Partners Ltd., Ensign Energy Services Inc., Halliburton Energy Services Inc., Nabors Industries Ltd., Schlumberger Limited, STRATA Energy Services, and Weatherford International plc.

The COVID-19 pandemic has negatively impacted the oilfield service market globally, including in the US, where key players have reduced their workforce due to lockdowns. More than 27% of onshore drilling rigs remain idle, and over 23% of frac crews have been idled in recent years. The pandemic has also resulted in reduced demand for oil and gas due to restrictions on mobility in some industrialized countries, causing disruptions in production and supply chain activities. The oil market crisis has aggravated the capital market, causing matured oil corporations to cancel or postpone $41 billion in scheduled capital expenditures. In addition, the unexpected oil price war between Russia and Saudi Arabia has slowed the expansion of the oilfield services market. Despite these challenges, adaptable business tactics have been implemented to improve the potential of the oilfield service market.

The global oilfield service market size has been determined using primary and secondary sources. A comprehensive secondary research approach has been employed, utilizing both internal and external sources to collect qualitative and quantitative information related to the oilfield service market. This process has also provided an overview and forecast for the market segments. Additionally, several primary interviews have been conducted with industry experts and commentators, including VPs, business development managers, oilfield service market intelligence managers, national sales managers, valuation experts, research analysts, and key opinion leaders, who specialize in the oilfield service market. This has helped to validate the data and gain further analytical insights into the subject.