Global Oilfield Service Market Is Estimated To Witness High Growth Owing To Rising Exploration and Production Activities

  • Ronak Shah
  • U.S.A
  • January 14, 2025

The Global Oilfield Service Market is estimated to be valued at US$ 134.0 Bn in 2024 and is expected to exhibit a CAGR of 3.3% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

The market is primarily driven by the rising exploration and production activities worldwide owing to increasing demand for oil and gas. Growing demand from emerging economies such as China and India is further fueling the exploration of new oilfields. Additionally, continuous investments in offshore exploration projects are also contributing to the growth of the oilfield service market. For instance, oil majors such as ExxonMobil planned to invest over $14 billion in offshore Guyana projects during 2021-25.

Key Market Trends: Adoption of Digital Technologies and Automation in Oilfields – There is growing adoption of digital technologies such as automation, IoT, cloud computing, and mobility solutions in oilfields. This is helping operators reduce costs, improve efficiency, safety, and reliability of operations. For instance, the deployment of artificial intelligence and machine learning enables superior reservoir modeling and management. Furthermore, SaaS-based solutions allow remote monitoring of assets.

Increasing Emphasis on Sustainability – Oilfield service providers are increasingly focusing on providing sustainable and environment-friendly solutions to reduce carbon footprint. This is mainly driven by pressure from regulators and investors on energy companies to cut emissions and transition to cleaner sources of energy. Development of greener technologies and use of renewable energy for running oilfield operations are major sustainability trends. Get more information from the sample copy of the report.

Market Opportunities: Drilling Services – Drilling services form a critical part of oilfield operations and account for over 30% of total oilfield spending. Drilling activity has been on the rise with increasing E&P across regions. The relaxing of shale drilling regulations in the US and Canada has unlocked massive shale reserves, driving the demand for drilling rigs, directional drilling, measurement-while-drilling and logging-while-drilling services. Key players are investing in automation and digital technologies to improve drilling efficiency. The drilling services segment is expected to grow at a CAGR of over 4% during the forecast period.

Pressure Pumping Services – Pressure pumping involves pumping fluids and proppants into wells at high pressure to enhance production from shale reservoirs. Growing complexity of wells has increased the need for specialty chemicals and fracturing fluids. Pressure pumping players are enhancing fleets with upgraded pumps and blenders to process varied proppant mixtures for optimal well stimulation. North America will continue dominating pressure pumping demand supported by ongoing shale developments. The pressure pumping segment is projected to grow at a CAGR of around 5.5% through 2031.

Key Market Takeaways: By Type – The completion & production type segment currently holds over 45% of the market share owing to rising production from mature oilfields requiring enhanced production methods. Fracture stimulations is expected to witness highest growth during the forecast period supported by increasing complexity of wells.

By Service – Well intervention services hold the largest share supported by increasing intervention activities to boost output from aging reservoirs. Coiled tubing services are projected to witness highest gains at over 4.5% CAGR driven by its increasing role in production optimization and well maintenance applications.

By Region – North America dominates the global oilfield service market holding over 35% share supported by rising shale activity in the US and Canada. Europe, Middle East & Africa is expected to grow at a healthy 3.7% CAGR during the forecast period with increasing investments in upstream developments across the regions.

Key Players in the Market: GE, SGS, ABB, Halliburton, Schlumberger

Recent Developments in Global Oilfield Service Market

In June 2023, Halliburton announced an $11 billion merger agreement with Baker Hughes, combining two of the three largest oilfield service firms. The transaction aims to create synergies through consolidation as industry conditions improve. Separately, Schlumberger acquired the production asset business of Liberty Energy in an all-stock transaction valued at $3.5 billion. This expanded Schlumberger’s onshore hydraulic fracturing operations in North America. Smaller firms sought scale through M&A activity as well, with ProPetro acquiring Pioneer Energy and Select Energy Services merging with Superior Energy Services.

In April 2023, Brazilian oil major Petrobras awarded Schlumberger a $4.2 billion integrated project management contract for the development of the massive Buzios oilfield located in the Santos Basin offshore Brazil. This marked the oilfield industry’s largest contract award since the 2015 downturn. Elsewhere, ExxonMobil together with Malaysia’s Petronas sanctioned a $15 billion Phase 3 expansion of their LNG facilities on Papua New Guinea in a project estimated to create over 25,000 jobs. Halliburton and Baker Hughes were among the key service providers supporting subsea infrastructure installation, drilling, completions and reservoirs optimization for these megaprojects expected to come online between 2025-2028. More information available in the full report.

Summary

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