WELL COMPLETION EQUIPMENT AND SERVICES MARKET ANALYSIS

Well completion is the process of making oil and gas well capable of production after drilling is accomplished to signified depth. It comprises entire completion processes, which include running the production tubing, setting the downhole tools, and numerous other operations, which are carried out for making the well ready for production. Furthermore, the process of stimulation to improve the productivity of a well is also involved in well completion operation.

Increasing exploration and production activities across the globe backed by increasing number of rigs is contributing to growth of the well completion equipment and services market. For instance, Oil and Natural Gas Corporation (ONGC) aims to increase crude oil production from 22.6 MT (million tons) in 2017 to 26.42 MT in 2022. However, fluctuating oil price is a major factor restraining growth of the well completion equipment and services market worldwide.

Global Well Completion Equipment and Services Market Taxonomy

Global Well Completion Equipment and Services market is segmented into:

 By Equipment

• Packers
  • Permanent Packer
  • Retrievable Packer
    • Retrievable Tension Packer
    • Retrievable Compression Packer with Bypass
    • Wireline Set – Tubing Retrievable
    • Retrievable Tension/Compression Set – Versatile Landing
    • Retrievable Hydraulic Set Single String Packer
  • Dual String Packer
  • Permanent and Retrievable Sealbore Packer
  • Others
• Perforation/Fracturing Tools
  • Laser
  • Hydraulic Punches
  • Mechanical Punches
  • Water Jet
  • Others
• Sand Control Tools
  • Premium Mesh Sand Screen
  • Direct Wire Wrapped Sand Screen
  • Prepacked Sand Screen
  • Others
• Liner Hangers
• Valves
  • Subsurface Safety Valve
  • Flow-Control Valves
  • Formation Isolation Valve
  • Others
• Multistage Fracturing Tools
• Smart Wells
• Others

By Application

• Onshore
• Offshore

Packers hold the largest market share in the well completion equipment and services market as it provides numerous services such as zonal isolation, seal between inside of the casing and production tubing, wellbore wall, and other services. In 2017, TAM International Inc. an oilfield services company introduced casing annulus packers with the Deadbolt valve system, which is designed to run in harsh environments.

Onshore segment dominated the global well completion equipment and services market. According to U.S. Energy Information Administration, in 2015 the Global onshore crude oil production was 71% and that of offshore was 29%. However, offshore oilfield activities are projected to be the fastest growing segment, owing to growing offshore exploration and production activities in deep and ultra-deep waters.

Global Well Completion Equipment and Services Market Outlook

• North America dominated the market of well completion equipment and services in 2016. Shale gas revolution and the presence of major players has further driven the well completion equipment and services market in this region. According to Baker Hughes Company, in 2017, the rig count in the U.S. was 940, which was up 431 from 509 counted in 2016. This has further resulted in increasing installation of well completion equipment and thereby, has contributed to the overall growth of this market in North America.
• Asia Pacific is projected to have a significant growth in the well completion equipment and services market, owing to increasing energy demand in the economies such as China, India, and Indonesia. According to India Brand Equity Foundation (IBEF), India’s demand for energy is anticipated to double from 700.50 MTOE (Million Tons of Oil Equivalent) in 2015 to 1,516 MTOE in 2035. Major players are focused on enhancing production capacities to meet increasing demand of this region. For instance, in 2015, Pertamina Corporation, Indonesia’s national oil company, purchased 30% of Murphy Oil’s assets in Malaysia, aiming to enhance Indonesia’s hydrocarbon production from overseas assets.
• Middle East is the prominent market in well completion equipment and services. Many oil and gas companies are seeking investments in this region in order to increase their profit margin. Moreover, in 2015, Afek Oil and Gas Company limited, subsidiary of Genie Energy Ltd. (U.S.), discovered oil reserves in the Golan Heights, a Syrian territory, which is occupied by Israel and is 10 times larger than an average oilfield.
• Africa is accounted to be one of the fastest growing markets in the well completion equipment and services market, owing to development in offshore oil and gas exploration and production activity. In 2010, an estimated 85 trillion cubic feet of gas was discovered in the Rovuma basin in Mozambique. Significant discoveries in Kenya, Tanzania, and South Africa have boosted the growth of oil and gas industry in this region, hence, fueling the market growth of well completion equipment and services. The US Geological Survey estimates that the coastal area of Tanzania and Mozambique could retain 14.5 billion barrels of oil and 250 Tcf (trillion cubic feet) of gas.

The major players in well completion equipment and services include Halliburton Company, Schlumberger Ltd., Baker Hughes, Inc., Weatherford International Plc, National Oilwell Varco, Inc., Superior Energy Services, Nabors Industries Ltd., Trican Well Service Ltd., and Packers Plus Energy Services.

Well Completion Equipment and Services Market Key Developments:

• In March 2017, a wholly owned LUKOIL subsidiary, LUKOIL-Western Siberia introduced new well completion technologies for multi-stage hydrofracturing at Yugra fields, Russia. This new assembly consists of liner hanger, hydrofracturing equipment, and swelling packers with hybrid elastomers. This upgraded technology was tested at five wells of Imilorskoye and Tevlinsko-Russkinskoye successfully and is expected to provide higher flow rates from well.
• In November 2018, three well service companies including TEC Well Service, Momentum Pressure Control, and M6 Energy Services came together to form a new company, Axis Energy Services, LLC. Axis Energy Services, will work as completion specialist, whereas, Axis is the first well servicing company built on-purpose which will focus on optimizing completions on long-lateral shale wells.
• In March 2019, Weatherford International plc., introduced TR1P system, the world's first remote-activated, single-trip deepwater completion system. This system would combine the upper and lower completions in one trip and is expected to reduce installation time between 40% to 60% and reduce rig time by 4 to 6 days.