Oilfield Services Market Trends

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 oilfield services 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

• Rising Price of Crude Oil - The fluctuating demand and supply of crude oil are to blame for the oil and gas sector's inflexibility in crude oil pricing. This variation considerably affects oilfield services market demand while also escalating rivalry between the United States, OPEC members, and non-OPEC nations. The increased price of oil causes investments and forthcoming projects to be delayed, which halts drilling projects and causes a decline in oilfield services. As a result, market expansion is expected to be hampered by crude oil price volatility.
• Stringent Government Laws on E&P Activities
• Surge in Use of Sustainable Alternative