Well Cementing Market Overview

Well cementing is a service that helps prevent the fluid movement from the reservoir to the wellbore. It also protects and supports the well casing in addition to providing zonal isolation. Oilfield service companies offer these services for the completion of new wells and for the sealing of lost circulation zones or areas where there is less/absence of flow within the well.

Based on service type, the well cementing market is classified into primary, remedial, and other services, including advanced cementing. Of these, primary well cementing accounted for an estimated revenue of 75.0% in the market in 2018. This can be mainly attributed to the increase in E&P activities coupled with the need for zonal isolation during well cementing, which led to the demand for primary services. The market for this category is further expected to increase on account of the revival in crude oil prices since 2017.

On the basis of well type, the well cementing market is categorized into oil, gas, and shale gas. Under this segment, oil well cementing held the largest share in the market, with an estimated contribution of 55.0% in 2018. In recent years, the recovery in crude oil prices has encouraged E&P companies to invest more in crude oil E&P projects, which, in turn, has led to the drilling of new wells. This increase in investments in new projects is further expected to fuel the market growth in this category during the forecast period.

The well cementing market is also bifurcated into onshore and offshore applications. Between the two, cementing services for onshore wells held the larger share in the market in 2018. This can be mainly attributed to the presence of a large number of onshore reserves globally, which can be drilled at a low operational cost. In addition, the development of advanced exploration technologies is further facilitating deep drilling operations of existing onshore wells, thereby boosting the market for onshore well cementing.