Market Trends of Geophysical Equipment and Services Industry
This section covers the major market trends shaping the Geophysical Equipment & Services Market according to our research experts:
Increasing Demand from Oil and Gas Industry
- The oil and gas industry is expected to maintain its dominance in the market over the forecast period. The geophysical equipment and services market was negatively affected by the downturn in the oil and gas industry in the past few years.
- The oil and gas market started to recover after mid-2016 and gained significant momentum in 2017. In 2018, the price of crude oil was USD 75 per barrel. The investors are expected to invest in the exploration of unconventional reserves, in order to meet the increasing global demand for oil and gas.
- As of 2018, the global consumption of fuel, i.e. oil and gas, accounted for 4662.1 and 3309.4 million ton oil equivalent (MTOE), respectively. The demand for solar and wind energy storage systems and lithium-ion batteries is expected to increase in a carbon-constrained environment. This factor is also expected to result in a huge demand for a wide range of minerals and metals.
- With the increasingly depleting sources of oil and gas, the necessity for finding new sources for hydrocarbons is immense and valuable. With this, the demand for geophysical services is expected to increase in the oil and gas industry.
- Seismic technology is expected to be used extensively in the oil and gas and mining industries. Therefore, the demand for geophysical equipment and services market is expected to increase during the forecast period.
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North America to Dominate the Market
- North America is expected to dominate the geophysical equipment and services market during the forecast period. This is primarily on account of the investments in exploration activities.
- The number of geophysical surveys is increasing in the United States, which further boosts the market in this region. Moreover, the geophysical survey budget in the country is estimated to receive USD 1.16 billion, according to a proposed plan for the financial year 2019.
- Mexico’s crude oil production was declining. In order to address this, the government, in 2014, had introduced energy reforms, for ending the monopoly (for 75 years) of PEMEX, a state-owned oil and gas company.
- The Mexican government offered several blocks for exploration in the past few years. The liberalization of the upstream sector led to the entry of 70 oil and gas operators in the country after several biddings for blocks. This factor boosted the demand for geophysical equipment to carry out several operations.
- Therefore, these factors are expected to create opportunities for the growth of the geophysical equipment and services market during the forecast period.
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