What is the global market size of Oilfield Service Market?

Oilfield Service Market size was valued at USD 267.82 billion in 2021 and is poised to grow from USD 285.5 billion in 2022 to USD 476.06 billion by 2030, growing at a CAGR of 6.6% in the forecast period (2023-2030).

Who are the key vendors in the Global Oilfield Service Market?

Oilfield service market is highly competitive and somewhat fragmented. Major players include Schlumberger Limited, Halliburton Company, Baker Hughes, and Weatherford. Other key players include TechnipFMC, Saipem, Petrofac, and more. In 2022, Baker Hughes announced partnership and investment in NET Power.

What is the key driver of Global Oilfield Service Market?

Shale gas exploration and technological advancements in drilling and hydraulic fracturing are key drivers of the oilfield service market. Countries like China aim to increase shale gas production, driving demand for oilfield services.

What is the key market trend for Global Oilfield Service Market?

Increasing offshore oil and gas discoveries, especially in regions like Alaska, Golan Heights, and the Stabroek block, are driving market growth. According to the Energy Information Administration, the number of new oil and gas discoveries is rising globally.

Which region accounted for the largest share in Global Oilfield Service Market?

North America leads the global oilfield service market, followed by Asia Pacific and Europe. The Gulf of Mexico and the North Sea are key regions driving demand for oilfield services.

Global Oilfield Service Market Size, Share, Growth Analysis, By type.(rental, field operation), By Services(geophysical, drilling) - Industry Forecast 2024-2031

Report ID: SQMIG10B2042 | Region: Global | Published Date: April, 2024
Pages: 178 | Tables: 65 | Figures: 77

Global Oilfield Service Market Dynamics

Oilfield Service Market Drivers

Shale Exploration to Bolster Market Growth

Shale gas is a type of natural gas that is trapped within shale formations. Because of the low permeability of the shale formation, these trapped gases cannot flow into the well. However, technological advancements such as directional drilling and hydraulic fracturing have aided in increasing shale gas production from such critical reservoirs. Shale exploration necessitates a wide range of oilfield equipment and services. China, for example, has the most shale reserves, with the Sichuan Basin in the Chongqing area accounting for a sizable portion of its output. With the help of advanced drilling tools and shale gas exploration techniques, the country intends to increase production to 30 billion cubic metres per year by 2020, and 80-100 billion cubic metres per year by 2030.

rising energy demand and lucrative investment opportunities in the oil and gas industry, production and exploration activities are expected to increase in the coming years. For example, in July 2019, 13 Energy PLC awarded Baker Hughes GE an oilfield service contract to drill at the Liberator and Serenity assets in the North Sea. Conventional onshore oil is expected to account for a significant portion of total global oil production. According to the DNV GL Energy-Transition-Outlook, oil production will rise by 83 million barrels per day (Mbpd) in 2022. Furthermore, unconventional onshore oil production is expected to double to around 22 Mbpd by 2035, accounting for nearly 30% of total global crude oil production. As a result, increased production and exploration activities in the oil and gas industry are expected to drive market growth in the coming years.

Oilfield Service Market Restraints

Fluctuation in Market to Hinder its Growth

The oil and gas industry is experiencing crude oil price inflexibility, which is attributed to variations in crude oil demand and supply. This fluctuation significantly disrupts market demand while also intensifying competition between the US, OPEC countries, and non-OPEC countries. Higher oil prices cause delays in upcoming projects and investments, which causes drilling projects to be halted, resulting in a drop in oilfield services. As a result, volatility in crude oil prices is expected to stymie market growth.

Global Oilfield Service Market Report Snapshots

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FAQs

Global Oilfield Service Market size was valued at USD 285.5 billion in 2022 and is poised to grow from USD 304.34 billion in 2023 to USD 507.48 billion by 2031, growing at a CAGR of 6.60% during the forecast period (2024-2031).

Oilfield service market is highly competitive and somewhat fragmented. To maintain a competitive edge, the major industry participants are continually implementing various growth strategies. Innovations, mergers, and acquisitions, collaborations and partnerships are adopted by these players to thrive in the competitive market. In order to provide industries with the most effective and economical solutions, the major market players are also continually concentrating on R&D. Because of the strong portfolio of services and a remarkable distribution network of major companies in developed and emerging markets, the market is consolidated. Schlumberger Limited, Halliburton Company, Baker Hughes, and Weatherford currently control the majority of the market. Other key players have entered the market to provide innovative oilfield services to various end-users, including hydratight, Muntajat, Protiviti Inc., ESG Solutions, Cyntech, Fugro, Hytera, Geokinetics, and other small players. 'Schlumberger Limited', 'Halliburton', 'Baker Hughes', 'Weatherford International', 'National Oilwell Varco', 'TechnipFMC', 'Saipem', 'Petrofac', 'Subsea 7', 'Wood Group', 'KBR Inc.', 'McDermott International', 'SGS S.A.', 'Aker Solutions', 'Transocean Ltd.', 'John Wood Group PLC', 'Seadrill Limited', 'Nabors Industries Ltd.', 'Expro International Group Holdings Ltd.', 'Precision Drilling Corporation', 'In 2022, Baker Hughes announced partnership and investment in NET Powers. The partnerships will enable the company to accelerate the oilfield service market development of zero-emissions power plant.', 'In April 2021, Nov Inc and Chevron announced their collaboration. The collaboration will accelerate and enhance the delivery and development of technologically advanced products and services. Nov Inc will benefit from this collaboration in the development of the next-generation subsea systems.'

Shale gas is a type of natural gas that is trapped within shale formations. Because of the low permeability of the shale formation, these trapped gases cannot flow into the well. However, technological advancements such as directional drilling and hydraulic fracturing have aided in increasing shale gas production from such critical reservoirs. Shale exploration necessitates a wide range of oilfield equipment and services. China, for example, has the most shale reserves, with the Sichuan Basin in the Chongqing area accounting for a sizable portion of its output. With the help of advanced drilling tools and shale gas exploration techniques, the country intends to increase production to 30 billion cubic metres per year by 2020, and 80-100 billion cubic metres per year by 2030.

The increasing number of oil and gas discoveries, as well as technological advancements for higher yield in oilfield reserves, can have a significant impact on market growth. For example, Alaska in the United States, Golan Heights in Israel, Alpine high in West Texas, oil discoveries in the Stabroek block Tilapia, Yellowtail (oil), and Haimara (gas-condensate), an offshore gas discovery with the Lang Lebah-1RDR2 exploration well, and so on. According to the Energy Information Administration (EIA) 2020, in the second quarter of 2020, China and Brazil are leading with three new oil and gas discoveries each, followed by Egypt, Norway, the United States, and Mexico, each with two discoveries. Furthermore, 23 oil and gas discoveries were made globally in Q2 2020. 15 of these are oil discoveries, with the remaining 8 being gas discoveries. As a result, the increasing number of offshore discoveries is promoting market development.

North America is expected to have the largest market share in the global market, followed by Asia Pacific and Europe, in that order. The trend is expected to continue during the forecast period, with significant activity expected in offshore assets in the Gulf of Mexico and the North Sea, driving demand for oilfield services. Schlumberger Limited completed the acquisition of Peak Well System, a specialist in the design and development of advanced downhole tools for flow control, well intervention, and well integrity. Europe is also expected to have a larger market share, which is expected to grow over the forecasted period.

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