In 2016, the Middle East produced 34.5% of the global production and the regional production recorded an annual growth of around 5.7%, from 2015. During 2014-2017, the average crude oil price was around USD 44 per barrel. The average rig count in the Middle East has indicated signs of recovery, with lesser decline in 2017 compared to that of 2016. The average rig count also increased quarter wise in 2017, excluding the last quarter. The oil * gas activity in 2018 and during the forecast period is expected to be positive, supported by crude oil prices of above USD 60 per barrel mark. As a result, over the forecast period, it is expected that the well intervention activities, such as hole cleaning, stimulation, fishing, etc., will increase.
Iran and Iraq Drive the Market with their High Production Growth Rates
Crude oil production in Iran and Iraq registered CAGRs of 11% and 16% respectively, during 2014-2016. The rig count in Iraq has been on a rise since the second last quarter of 2016, in response to the stabilizing crude oil price. The annual average rig count in Iran increased from 43 in 2016 to 49 in 2017. A significant increase was observed seen in the second half of 2017. The number of wells completed in the region has also increased from 505 in 2014 to 566 in 2016, of which 34% were in Iran and Iraq, while Saudi Arabia had the largest share of 28%, as a single country. The number of completed wells is expected to further continue, as crude oil price shoots up and increase the demand for services, such as hole cleaning before completion, stimulation, etc., thus driving the market studied.
Saudi Arabia to Cut Oil Production – A short-term Market Restraint
The crude oil price has indicated volatility in beginning of 2018, from over USD 72 barrel per day (bpd) to USD 62 bpd, in just two weeks. Saudi Arabia is one the major crude oil producers in the world, accounting for 13.4% of the global oil production. The country has maintained its focus on reducing the excess oil inventories. It is expected to reduce its production by 100,000 bpd in March 2018, in response to OPEC’s last meeting in November 2017. OPEC has extended its oil production cut until the end of 2018. The expected decline in production is likely to have an adverse impact on the well intervention market, over the short term.
Hydraulic Fracturing in Oman Boosting the Market
BP, a British oil & gas company, has started the production from a USD 16 billion gas project in Oman, which involves the US-style of fracking technology. The project lies in the Khazzan field in the Central Oman, characterized by tight rock requiring horizontal drilling and hydraulic fracturing, to produce the trapped gas. In the first phase, 200 wells were drilled for production from Khazzan field and 100 wells are further expected to be drilled in 2018, after it receives the final investment decision from BP. The increasing hydraulic fracturing activity in Oman is expected to drive the demand for well stimulation, thus augmenting growth of the market studied.
Key Developments in the Market
- January 2017: Schlumberger acquired Peak Well System, 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, Expro Group, Superior Energy Services Inc., National Oilwell Varco, Archer, Odfjell Well Services, and Axis Well Technology, among others.
Reasons to Purchase This Report
- Current and future Middle East well intervention market outlook in the developed and emerging regions.
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis.
- The segment that is expected to dominate the market.
- Regions that are expected to witness the fastest growth during the forecast period.
- Identify the latest developments, market shares. and strategies employed by the major market players.
- 3 months analyst support along with the Market Estimate sheet (in excel).
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1. Executive Summary
2. Research Methodology
3. Market Overview
3.2 Market Size and Demand Forecast until 2023
3.3 Recent Trends and Developments
4. Market Dynamics
5. Supply Chain Analysis
6. Industry Attractiveness - Porter’s Five Forces Analysis
6.1 Bargaining Power of Suppliers
6.2 Bargaining Power of Consumers
6.3 Threat of New Entrants
6.4 Threat of Substitutes
6.5 Competitive Rivalry
7. Market Segmentation and Analysis (Overview, Market Size, and Demand Forecast until 2023)
7.1 By Location
8. Regional Market Analysis (Overview, Market Size, and Demand Forecast until 2023)
8.1 Saudi Arabia
8.5 Rest of Middle East
9. Key Company Analysis* (Overview, Products & Services, Financials**, Recent Developments, and Analyst View)
9.1 Schlumberger Limited
9.2 Weatherford International PLC
9.3 Baker Hughes A GE Co
9.4 Halliburton Company
9.5 Expro Group
9.6 Superior Energy Services Inc.
9.7 National Oilwell Varco
9.9 Odfjell Well Services
9.10 Axis Well Technology
10. Competitive Landscape
10.1 Mergers and Acquisitions
10.2 Joint Ventures, Collaborations, and Agreements
10.3 Strategies Adopted by Leading Players
11.1 Contact Us
*List not Exhaustive
**Subject to Availability on the Public Domain