Market Trends of Slickline Services Industry
This section covers the major market trends shaping the Slickline Logging Services Market according to our research experts:
Onshore Segment to Dominate the Market
- Onshore drilling encompasses all the drilling sites located on dry land and accounts for 70% of the worldwide oil production. Onshore drilling is similar to offshore drilling but without the difficulty of deep water between the platform and the oil.
- The global crude oil prices have shown signs of recovery and are improving at a good pace, and the onshore projects are easier to kick start than offshore ones. Therefore, riding on the optimism associated with the recovery of crude oil prices, onshore projects are expected to record significant growth over the forecast period, in turn driving the demand for the slickline services market.
- Oil consumption worldwide reached 94,088 thousand barrels daily in 2021, up from 86,568 thousand barrels daily in 2010. Thus with an increase in oil demand, new oil wells are expected to be drilled in the coming years, resulting in an increased demand for slickline services worldwide.
- In 2021, ADONOC Drilling (drilling subsidiary of ADNOC) awarded a five-year USD 3.8 billion contract with Adnoc Onshore for the continued provision of drilling, workover, and other well services.
- In 2021, Saipem was awarded new onshore drilling contracts in the Middle East and South America. The new contracts are worth a total of USD 70 million.
- Hence, with the new investment in the onshore oil and gas industry, increasing exploration of unconventional resources, and the crude oil price stability, which in turn are expected to increase the demand for slickline services market globally.
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North America to Dominate the Market
- North America is expected to dominate the slickline services market and is expected to grow at a significant rate over the forecast period.
- In North America, offshore oil and gas projects are becoming more competitive, owing to improving efficiencies and tightening the supply chain, which led to declining offshore drilling costs.
- In terms of policy and government support, the United States federal government launched an auction of more than 80.9 m acres to be leased by the United States government for oil and gas production in 2021.
- The recent development of shale plays, horizontal drilling, and fracking resulted in a massive increase in the country's demand for drilling and completion fluids. For instance, in 2020, extensions and discoveries of 92 million barrels of new proved crude oil reserves were reported, mostly from operators drilling horizontal wells in the Uinta Basin, Colorado, United States.
- The annual oil output of Mexico has been dropping over the years, as the giant Cantrell field in the shallow waters of the Gulf of Mexico is drying up. However, the Mexican government is trying to increase private investments in its controlled areas of the Gulf of Mexico. For instance: in Mexico, private sector firms announced 12 commercial oil and gas discoveries in Mexico between 2017 and 2020.
- Therefore, increasing oil and gas drilling and completion activities in the region are expected to increase the demand for slickline services market over the forecast period in the North American region.
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