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Oilfield Services (OFS) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 250 Pages
  • June 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 4514912
UP TO OFF until Dec 31st 2023
The global oilfield services market was valued at USD 96.65 billion in 2020, and it is expected to reach USD 135 billion by 2027, registering a CAGR of 5.13% during the forecast period of 2022 - 2027. During 2020, due to the COVID-19 pandemic the oil and gas industry witnessed a severe impact, with a decrease in crude oil demand due to lower consumption in various parts of the world, thus forcing several companies to either suspend or reduce investment in projects. For example, Chevron Corporation decreased capital expenditure from USD 13.5 billion to USD 11.5 billion for the year 2021. Factors such as the increasing development of gas reserves and advanced technology, tools, and equipment are expected to drive the market for oilfield services. However, the volatile oil prices over the recent period, owing to the supply-demand gap, geopolitics, and several other factors have been restraining the growth in the demand for the oilfield services market.

Key Highlights

  • Drilling Services are expected to lead the market for oilfields services due to the increase in exploration activities and massive development of shale plays in recent years.
  • The industry's focus on new technologies and methods to optimize its production cost of hydrocarbons is expected to create several opportunities for oilfield services (OFS) market in the future.
  • North America holds the largest share of the market owing to high drilling and production activity in shale fields, and is expected to a dominate the market during the forecast period.

Key Market Trends

Drilling Services Expected to Dominate the Market

  • The global economy is expected to underpin a substantial increase in oil demand. Strong economies are anticipated to consume more oil, and the demand is expected to grow at an average of 1.2 mb/d per year during 2020-2024. Together, India and China are expected to contribute around 50% of the global oil demand by 2023.​
  • Hence, there is increasing pressure among the top oil and gas operating companies to increase their production and meet the increasing energy demand. As a result, several operating companies have shifted their focus toward exploiting unconventional reserves, as the conventional fields have started showing signs of maturity. ​Therefore, the demand for other drilling services such as onshore contract drilling, directional drilling tools rental, measurement while drilling (MWD), and logging while drilling (LWD) is expected to be positive.
  • - Further, new offshore contract drilling services are also expected to drive the oilfield services market. For instance, in May 2022, Equinor had contracts with three oilfield services giants - Baker Hughes Norge, Halliburton, and Schlumberger for integrated drilling and well services on the Norwegian continental shelf (NCS). The contracts is of two years, starting from 1st June 2022. The total value of the contract is about NOK 20 billion.
  • Technological advancements of drilling and logging tools are also expected to drive drilling services during the forecast period. For instance, in November 2020, China Oilfield Service Ltd (COSL) set up a joint venture to research and fabricate well logging and directional well drilling technology and equipment in southern China’s Foshan city. The joint venture plans to invest RMB 1 billion to develop equipment using COSL’s Drilog, Welleader, and ELIS technology.
  • Therefore, owing to the above points, the drilling services are expected to dominate the oilfield services (OFS) market during the forecast period.

North America Expected to Dominate the Market

  • The share of North America in global crude oil production has increased from 18.8% in 2001 to around 25.45% in 2020, which has resulted in increased demand for oilfield services in the region.
  • In North America the oil and gas projects are becoming more competitive, owing to improving efficiencies and tightening of the supply chain, which has led to declining costs of drilling and have in turn made a lot of projects viable.
  • United States in the region is to be one of the largest markets for oilfield services, mainly due to the increasing number of wells being drilled and fracked in the shale and tight reserves. This is supported by the low breakeven price of the basins. The recent development of shale plays, horizontal drilling and fracking have resulted in a massive increase in demand of oilfield services in the region.
  • On a similar note, Canada has the world’s third-largest crude oil reserves, after Venezuela and Saudi Arabia, of which 96% are oil sand reserves. The oil available in the country is of high density and has high sand particle content. Due to this, oil transport from the bottom hole of the oil well to the surface requires high pressure and well bore intervention, thus increasing the demand for oilfied services in the country.
  • Therefore, owing to the above points, the North America is expected to dominate the oilfied services (OFS) market during the forecast period.

Competitive Landscape

The oilfield services market is fragmented with a lot of active players. Some of the major players are Schlumberger Limited, Baker Hughes Company, Halliburton Company, Weatherford International Plc, and China Oilfield Services Limited among others.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Crude Oil and Natural Gas Production and Forecast, till 2027
4.4 Onshore and Offshore Active Rig Count, till 2021
4.5 Historic and Demand Forecast of CAPEX in USD billion, by Onshore and Offshore, 2019-2027
4.6 Offshore Sector Capital Expenditures (CAPEX) Forecast in USD billion, by Region, until 2027
4.7 Offshore Sector Capital Expenditures (CAPEX) Forecast in USD billion, by Water Depth, until 2027
4.8 Recent Trends and Developments
4.9 Government Policies and Regulations
4.10 Market Dynamics
4.10.1 Drivers
4.10.2 Restraints
4.11 Supply Chain Analysis
4.12 Porter's Five Forces Analysis
4.12.1 Bargaining Power of Suppliers
4.12.2 Bargaining Power of Consumers
4.12.3 Threat of New Entrants
4.12.4 Threat of Substitutes Products and Services
4.12.5 Intensity of Competitive Rivalry
5.1 Service Type
5.1.1 Drilling Services
5.1.2 Completion Services
5.1.3 Production and Intervention Services
5.1.4 Other Services
5.2 Location of Deployment
5.2.1 Onshore
5.2.2 Offshore
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 South America
5.3.5 Middle-East and Africa
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Schlumberger Limited
6.3.2 Weatherford International plc
6.3.3 Baker Hughes Company
6.3.4 Halliburton Company
6.3.5 Transocean Ltd.
6.3.6 Valaris PLC
6.3.7 China Oilfield Services Limited
6.3.8 Nabors Industries, Inc.
6.3.9 Basic Energy Services Inc.
6.3.10 OiLSERV
6.3.11 Expro Group

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Schlumberger Limited
  • Weatherford International plc
  • Baker Hughes Company
  • Halliburton Company
  • Transocean Ltd.
  • Valaris PLC
  • China Oilfield Services Limited
  • Nabors Industries, Inc.
  • Basic Energy Services Inc.
  • Expro Group