The market is segmented by Deployment (Onshore and Offshore), Hole Type (Open-Hole and Cased-Hole), Type (Electric Line and Slickline), and Geography (Saudi Arabia, Iran, United Arab Emirates, and Rest of Middle-East)
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Scope of the Report
Key Market Trends
TABLE OF CONTENTS
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The oil and gas well logging services market is expected to grow at a CAGR of 2.62% during the forecast period. Factors, such as increasing demand for oil and natural gas and increasing investments in the upstream oil and gas sectors across the region, are expected to drive the number of exploration and production activities, thereby driving the wireline services market during the forecast period. However, the crude oil prices have been highly volatile between 2019 and the start of 2020, fluctuating between USD 60 per barrel and USD 25 per barrel by the start of 2020. This volatility of oil prices remains a growing concern for the upstream industry. Hence, this is expected to hinder the market during the forecast period.
The increasing exploration activities in the offshore region is expected to boost the demand for wireline services market during the forecast period.
The shift of the projects from onshore to offshore, shallow waters to deep waters and ultra-deep waters is an opportunity for the wireline service providers to innovate and come up with products suitable and customized to the harsh climatic conditions of offshore basins.
Saudi Arabia is expected to drive the wireline services market in the region followed by United Arab Emirates (UAE), Iran, and others.
Scope of the Report
The Middle-East wireline services market report include:
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Key Market Trends
Offshore to Dominate the Market
The offshore oil and gas drilling sector had been subdued in the past few years, mainly due to the crude oil price being lower than the breakeven price of several offshore oil and gas fields. As a result, the demand in the oil and gas wireline services market was negatively impacted.
The Brent crude oil price started showing signs of improvement after mid-2016 and remained well above USD 60 per barrel throughout 2018. This, coupled with the cost reduction program of upstream oil and gas companies, resulted in gaining the confidence of investors for final investment decisions for projects, which got canceled during the low commodity price environment.
For instance, in May 2019, Dana announced that it had commenced the drilling operations at its Merak-1 well, offshore Egypt, located in the North El Arish concession, also known as Block 6. This block is in the Eastern Mediterranean Basin, where other world-class giant natural gas discoveries have been made in recent years.
However, on the flip side, in the early 2020, the oil prices got severely affected by the several OPEC deal cancelation and excessive crude oil and gas flow in the international market. Which is expected to slow down the investment in both offshore and onshore region.
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Saudi Arabia to Dominate the Market
The Kingdom of Saudi Arabia is one of the biggest global oil producers, with the production of 12.3 million barrels per day in 2018.
The Kingdom of Saudi Arabia holds the second-largest proven oil reserves in the world after Venezuela. Saudi Aramco, the country’s largest oil and gas company, is continuously engaged in exploration and development, in order to compensate for declining fields elsewhere.
The crude oil production rate has been consistent in Saudi Arabia, even during the distressful period in the industry, when crude oil prices plunged to a very low level in recent years.
Further, oil and gas drilling activity in Saudi Arabia is anticipated to increase on account of government policy to drive the oil and gas production in the country. The policy to drive upstream activity will likely promulgate the oil and gas wireline services market in the near future.
For instance, in February 2019, ADES International, an oil and gas drilling and production company, received two onshore drilling contracts in Saudi Arabia worth USD 150 million. Each secured contract has a tenure of seven years, with five fixed years and two years of optional terms.
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The Middle-East wireline services market is fragmented. Some of the key players are Schlumberger Limited, Halliburton Company, Baker Hughes Company, Expro Group, ADES International, etc.