The Asia-Pacific oil & gas industry showed sign of revival in 2017, as the crude oil price recovered and same was followed by the well intervention market. Australia, India, and China led the drilling activity in the region in 2017. China and India are the largest consumer of oil & gas in the region, and they are planning to reduce the dependency on oil & gas imports, respectively, and increase domestic output to meet the rising demand for fuel. As a result, the oil & gas activity is expected to increase, and hence, the well intervention market is expected to grow.
Declining Investment in Indonesia Restraining the Market
The Indonesian oil & gas industry has been negatively impacted by the drop in crude oil price, changing regulations, competition from neighbors, such as Malaysia, who are proving more attractive to foreign investors. The oilfields are matured and are expected to deplete in the forecast period. Lack of drilling success in the past has further weakened the outlook for investment. As a result, the demand for well intervention is expected to be restrained in Indonesia.
China to Account for Largest Share in the Market
China is the largest market for well intervention in the region. The country is planning to reduce its dependency on natural gas import and has started to exploit its shale gas reserve to meet the domestic demand. Sichuan province, the most important area for shale gas, is expected to produce more than 4.5 billion cubic meters of gas in 2018, increasing the demand for hydraulic fracturing, a type of well intervention. The country has urged NOC’s and state-owned energy companies to optimize extraction action plans for ensuring increasing domestic natural gas production. Other countries, like India, are planning to reduce crude oil imports by 10% by 2022 from 2017. Also, the government has made the entry for foreign companies comparatively easy as per the new licensing policy. As a result, both China and India provide ample opportunity for well intervention.
Key Developments in the Market
- July 2017: General Electric completed its buyout of Baker Hughes Inc., merging it with its own oil & gas equipment and services operations to create the world's second-largest oilfield service provider by revenue. The new company is named "Baker Hughes, a GE Company”.
- January 2017: Schlumberger acquired Peak Well System, which is a specialist in the design and development of advanced downhole tools for well intervention, flow control, and well integrity.
Major Players: Schlumberger Limited, Weatherford International PLC, Baker Hughes A GE Co., Halliburton Company, National Oilwell Varco, Superior Energy Services Inc., Expro Group, Archer, Aker Solutions, ALTUS Intervention, among others.
Reasons to Purchase this Report
- Current and future Asia-Pacific well intervention market outlook in the developed and emerging markets
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- The segment that is expected to dominate the market
- Countries that are expected to witness the fastest growth during the forecast period
- Identify the latest developments and strategies employed by the major market players
- 3 months analyst support, along with the Market Estimate sheet (in excel)
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