Update:
The market is segmented by Location of Deployment (Onshore and Offshore), Type (Primary, Remedial, and Other Types), an...
The market is segmented by Location of Deployment (Onshore and Offshore), Type (Primary, Remedial, and Other Types), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East & Africa).
Market Overview
The well cementing market is expected to grow at a CAGR of more than 3.55% over the forecast period of 2020-2025. Owing to the rise in crude oil price, the industry seems more optimistic than in recent times. Oil and gas companies are planning to invest in the projects that were put on hold due to the high cost of development, which is expected to drive the market growth over the study period. However, the volatile oil prices over the recent period, owing to the supply-demand gap, geopolitics, and several other factors, have restrained the growth in the demand for the well-cementing services market.
- The onshore is expected to have a maximum share in the market in 2019. Onshore drilling encompasses all the drilling sites located on dry land and accounts for 70% of worldwide oil production.
- The increasing oil and gas discoveries coupled with the liberalization in the industry globally has been leading to the creation of new opportunities for the players to invest in. The new emerging markets are several developing nations of the Middle East and Africa, Asia-Pacific, and South America.
- North America is the dominant market for well-cementing services and is expected to remain the market leader during the forecast period.
Key Market Trends
Onshore Segment to Dominate the Market
- Onshore drilling encompasses all the drilling sites located on dry land and accounts for 70% of worldwide oil production. Onshore drilling is similar to offshore drilling but without the difficulty of deep water between the platform and the oil.
- The global crude oil prices have shown signs of recovery and are improving at a good pace, and the onshore projects are easier to kick start than offshore ones. Therefore, riding on the optimism associated with the recovery of crude oil prices, onshore projects are expected to record significant growth over the forecast period, in turn, driving the demand well-cementing services market.
- In August 2018, Baker Hughes was awarded a development contract by Cairn, Vedanta Limited, to construct approx. 300 new wells and to deploy a chemical enhanced oil recovery program aimed at increasing production from the Rajasthan area. The project marks the 0largest integrated project for BHGE in India, expanding its presence in the country and supporting the government's mission of reducing imports' dependency.
- In 2019, ONGC announced that it had allotted INR 6,000 crore in drilling 200 wells over the next seven years in Assam to increase its output. The wells are expected to be drilled during the next seven years.
- Hence, with the new investment in onshore oil & gas industry, increasing exploration of unconventional resources, and the crude oil price stability, which in turn are expected to increase the demand for well-cementing services market around the globe.
North America to Dominate the Market
- North America is expected to dominate the well cementing services market and to grow at a significant rate over the forecast period.
- The United States, as of 2019, is the largest producer of oil and gas. There are more than 900,000 active oil and gas wells in the United States, and more than 130,000 have been drilled since 2010.
- In 2018, the United States had witnessed three significant oil discoveries, including two in the Gulf of Mexico, at Ballymore (545 Mb) at a depth of 2,000 m underwater, and at Appomattox (140 Mb) under 2,300 m of water.
- According to a Canadian government report published in 2018, oil production from Canada is anticipated to reach 4.5 mmbpd by 2020, and the production is expected to increase from an offshore well situated in the West Orphan Basin, offshore Newfoundland, and Labrador, which is estimated to hold 25.5 bbl of oil and 20.6 tcf of gas.
- The annual oil output of Mexico has been decreasing over the years, with the giant Cantrell field in the shallow waters of the Gulf of Mexico drying up. However, the Mexican government is trying to increase private investments in its controlled areas of the Gulf of Mexico.
- Therefore, increasing oil and gas drilling and completion activities in the region are expected to increase the demand for well cementing services market over the forecast period in the North America region.
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Thanks & Best regards,
Lin Yang(Ms.)
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ZHEJIANG RUICO ADVANCED MATERIALS CO., LTD.(STOCK NO.: 873233)
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