Well Cementing Services Market Size, Share & Trends Analysis

Industry Insights
The global well cementing services market size was USD 7.44 billion in 2015. The rising energy demand is anticipated to increase the market growth and also urge the E&P companies to raise their investments in onshore and offshore oil & gas reserves. Increasing E&P for recovering unconventional hydrocarbon sources such as shale gas, tight gas, and coal bed methane is expected to contribute to well cementing services market growth over the foreseeable future. The well cementing service needs to provide proper zonal isolation and act as a support for the casing to protect it from corrosive fluids. The government is taking initiatives to provide these cementing services by giving proper specification standards for well operators.
Large unexplored reserves around the globe, especially in China, Brazil, and Russia, coupled with technological advancements in well cementing equipment & services provided by key oil service providers are anticipated to increase the market growth over the forecast period. Stringent environmental regulations for cementing materials are anticipated to restrain well cementing services market growth over the forecast period. The well cementing service market is largely dependent on crude oil prices and oil & gas production. Low crude oil prices will support stronger national economic growth but it will disrupt regional growth among energy-producing states. The cement used in the industry is classified according to API standards and the high-quality cement used in well cementing industry is called API cement or ClassH cement. The companies are involved in providing innovative cement solutions to compete in the market and attain a high market share compared to their competitors.

Service insights
Primary well cementing dominated the global demand and accounted for 78.6% of the market in 2015.The main objective of primary cementing operations include zonal isolation to prevent migration of fluids in the annulus, support for the casing or liner string, and protection of the casing string from corrosive formation fluids. Rising capital expenditure by E&P companies for improving sub-sea construction activities coupled with increasing acreages of offshore oil & gas blocks is estimated to drive well cementing services demand over the forecast period. Growing exploration for recovering unconventional hydrocarbon sources such as shale gas, tight gas and coal bed methane oil and gas well reserves is anticipated to further increase the primary well cementing operations around the globe
The remedial well cementing service segment is anticipated to witness the fastest growth at a CAGR of 6.9% from 2016 to 2024. The growing need for rehabilitation of oil & gas wells particularly in the Gulf of Mexico, North America, North Sea, and Russia is projected to increase the remedial cementing market over the forecast period.Other cementing services including advance cementing are anticipated to witness above-average growth on account of rising oilfield services requirement, particularly in deep sour gas wells. Increasing E&P for recovering unconventional hydrocarbon sources such as shale gas, tight gas, and coal bed methane are expected to contribute to well cementing services market growth in the foreseeable future.

Application insights
Onshore was the largest application segment accounting for 84.1% of well cementing service market in 2015. The increasing well operations in the onshore fields especially in Saudi Arabia, the U.S., China, and Russia coupled with the growing demand for oil and gas is projected to have stable market growth in the onshore applications. Moreover growing number of research initiatives to develop abandoned oil wells and renewed projects in various onshore oilfields are expected to drive oil & gas production over the long term, which is expected to drive the well cementing services market
Offshore is anticipated to emerge as the fastest-growing application segment with an estimated CAGR of 7.1% from 2016 to 2024. Rising exploration activities coupled with technological advancements both in equipment and service have made drilling operations more cost-effective and feasible in offshore. Significant development of existing offshore wells in deep and ultra-deep waters especially in the North Sea, Gulf of Mexico, Persian Gulf, and the South China Sea is expected to drive demand in the sector over the forecast period.

companies to carry more drilling activities by allowing tax redemption and FDI to increase the oil and gas production in the region. The aforementioned factor is expected to allow high investment opportunities in the region.

Recent discoveries of large oil & gas reserves in Africa are expected to raise the well cementing services market in this region over the forecast period. Industry in the Middle East is anticipated to witness above-average growth rate owing to large oil & gas reserves which are scheduled to be producing over the next few years. The aforementioned factor is anticipated to increase the well cementing market growth over the next few years.

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      Lin Yang(Ms.)

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     ZHEJIANG RUICO ADVANCED MATERIALS CO., LTD.(STOCK NO.: 873233)

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