Oilfield Service Market Size, Share, Growth Analysis, By type.(rental, field operation, and analytical services), By Services(geophysical, drilling, completion & workover, production), By Region - Industry Forecast 2024-2031

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 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.