Market Trends of Wireline Logging Services Industry
This section covers the major market trends shaping the Wireline Logging Services Market according to our research experts:
The Open Hole Segment is Expected to Dominate the Market
- Open-hole logging refers to the logging operations performed before the wellbore has been cased. In this type, logging is performed through the bare rock sides of the downhole formation. Open-hole logging is the most widely used technique at the global level as it renders no obstruction during the measurements.
- Being the most mature logging technique, it is expected to continue its share in the near future, as the hunt for new oil and gas fields is still on in many countries for more production. The global oil production was recorded as 88,391 thousand barrels per day. The method will prove to be the most cost-effective way to produce oil and gas from the reserves, particularly at this time when the companies have to invest cautiously in the upstream sector.
- In December 2020, Saudi Arabia's national oil company Saudi Aramco made four oil and gas discoveries in the Al-Reesh oilfield, northwest of the city of Dhahran. The newly found reserves were estimated to have non-conventional oil of 11,956 bpd capacity and 4.8 million standard cubic feet of natural gas. The development plan for the oil field is expected to be ready within a year.
- The other upcoming oilfield services projects will also prove to be the most significant drivers for the wireline logging services market. As an example, in August 2021, Halliburton, the oilfield services industry veteran, bagged a contract to construct offshore wells for Sapura Energy. Both the companies will jointly execute an Integrated Rig Drilling Completion (i- RDC) contract for six wells drilling and completion program.
- Such developments in the oil and gas upstream sector are likely to have a positive impact on the wireline logging services market during the forecast period.
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Middle-East and Africa is Expected to Dominate the Market
- The oil and gas upstream industry in the Middle Eastern region is expected to thrive more in the coming years. According to Rystad Energy, one of the leading industry players, this uptrend is expected to continue as they are of the opinion that offshore exploration investment is likely to increase five-fold by 2025.
- The rising crude oil prices are about to bring more revenue and investments for the E&P companies, and subsequently, it will lead to more contracts for oilfield services players. The region has recently witnessed an upsurge in many upstream projects, both offshore and onshore.
- In 2020, ADNOC approved the development plan of the Hail and Ghasha sour gas fields, located offshore Abu Dhabi, with EPC company KBR and other supporting partners. The gas fields are expected to produce up to 1.5 billion cubic feet per day of sour gas plus additional condensate. The project is currently in the development phase, and it is expected to start production in 2025.
- In 2020, the Iraq Oil Ministry signed an agreement with Chevron Corporation to develop the oil and gas fields in the southern province of Dhi Qar. The Iranian NOC and state-owned Dhi Qar Oil Co. have resumed talks with Chevron to develop exploration blocks in Nasiriyah fields, and the companies have agreed on all the technical and commercial terms. The exploration and development projects are expected to start within one or two years.
- Owing to such big investments planned in the upstream sector by the national and international companies, the region is expected to ace the market in the near future.
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