Oilfield Services Market size was valued at USD 134.62 Billion in 2023 and is projected to cross USD 301.54 Billion by the end of 2036, expanding at more than 6.4% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of oilfield services is estimated at USD 142.37 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 oilfield services 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.
Growth Drivers
Challenges
|
Base Year |
2023 |
|
Forecast Year |
2024-2036 |
|
CAGR |
6.4% |
|
Base Year Market Size (2023) |
USD 134.62 Billion |
|
Forecast Year Market Size (2036) |
USD 301.54 Billion |
|
Regional Scope |
|
Application (Onshore, Offshore)
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 2036. 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.
Service (Geophysical, Drilling, Completion & Workover, Production, Processing & Separation)
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 |
|
North American Market Forecast
The oilfield services market 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.
APAC Market Statistics
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.
Europe Market Forecast
Additionally, the oilfield services 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 oilfield services 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.
Author Credits: Dhruv Bhatia
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?