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 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.