GLOBAL OILFIELD SERVICES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Global Oilfield Services Market Size and Trends

Global oilfield services market is estimated to be valued at USD 134.0 Bn in 2024 and is expected to reach USD 168.77 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 3.3% from 2024 to 2031.

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The market is expected to witness steady growth during the forecast period. Growing oil & gas exploration and production activities mainly driven by rising energy demand globally will drive the global oilfield services market growth. Significant investments made by regional governments and energy companies in enhancing oil and gas infrastructure also acts as a key growth driver. Further, development of unconventional reserves and increasing complexity of oilfields requires more technologically advanced oilfield services which presents new opportunities for service providers. However, volatility in crude oil prices remains a major challenge. But continued shift towards renewable and low carbon alternatives for energy generation can hamper demand for oilfield services over the long term.

Oilfield services demand driven by international exploration projects

The demand for oilfield services is driven by rising international exploration projects. For instance, in May 2022, Equinor had contracts with three oilfield services giants - Baker Hughes Norge, Halliburton, and Schlumberger for integrated drilling and well services on the Norwegian continental shelf (NCS). The contract is for two years, starting from 1st June 2022. The total value of the contract is about USD 1.8 billion. Many major oil producing countries around the world are investing heavily in offshore as well as onshore exploration activities to discover new oil reserves and maintain their production levels. Several developments are underway in regions such as Middle East, Africa and Latin America to boost exploration of conventional and unconventional reserves. Several national oil companies and international super major operators have substantial exploration budgets planned over the next 5 years for high potential areas. For instance, Saudi Aramco had committed multi-billion dollar exploration programs offshore as well as onshore Saudi Arabia and neighboring regions to find sizable discoveries. Abu Dhabi National Oil Company has exploration and appraisal drilling planned across Latin America and Africa in joint ventures with international players. Major international operators like ExxonMobil, Chevron and BP also have vast exploration portfolios globally relying on oilfield services for activities.

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The demand for oilfield services is driven by growing production from mature oil and gas assets globally. As many of the existing oil and gas fields around the world reach maturity, oil and gas companies are deploying advanced production technologies such as enhanced oil recovery techniques to prolong the life of these mature assets and maximize production from them. This relies heavily on specialized oilfield services which are crucial for conducting complex intervention operations in mature fields and improving their recovery rates. For instance, the mature oil fields of the North Sea region and the shallow water Gulf of Mexico are adopting digital transformation solutions, remote operations, precision drilling and smart well completions to boost productivity, according to the International Energy Agency (IEA). The need for well intervention services, reservoir management technologies, drilling optimization solutions along with expertise in stimulation activities has grown exponentially over the past few years to extract remaining reserves from reservoirs considered mature. Reservoir management services have seen huge demand as production from existing reservoirs accounts for over 65% of global supply as per the IEA. This demand is expected to rise further as depletion rates inmaturing conventional oil fields accelerate globally.