Global Statistics Representing Oilfield Equipment Market Scenario

Oilfield equipment is associated with several upstream, downstream, and midstream activities in petroleum industries. To a great degree, the oilfield equipment market is dependent on upstream operations, which include exploration, drilling, and production processes. Oilfield equipment is elementary equipment used for the development of successfully explored oilfields.

The petroleum industry can be broadly divided into the onshore equipment market and offshore equipment market. Oilfield equipment is used to perform an array of functions, starting from drilling to well completion, including core functions such as drilling, well intervention, data acquisition, well logging, well competition, flow control, and pressure maintenance. Offshore drilling equipment is selected on account of its ability to work in deep water and harsh environments. For instance, in 2018, World Oil reported an increase in the well activities of 436 wells across Brazil, as compared to 2017.

With increasing applications, innovations, and advancements, the oil industry will continue to complement the oilfield equipment market. The oilfield equipment industry is made up of a set of mature companies, which can be categorized into two sets.

• Companies associated with the rental of drilling rigs.
• Companies that deliver services and equipment to construct, evaluate, and maintain oil and gas wells

Companies around the globe are employing a variety of strategies to increase their market shares. While some are increasing investments to drive technological advancements and improve the spectrum of exploration and production activities, others are revamping and reconstructing their existing oilfields. For instance, in 2018, the increased price of crude oil (USD 70 per barrel) marked the inflow of great investments in upstream projects, and in April 2018, Carnarvon Petroleum Ltd introduced plans for the reconstruction of its Buffalo oilfield in the Timor Sea.

The global oilfield equipment market is expected to grow at a CAGR of more than 5% during the forecast period, 2019–2026.

Key Drivers

• Rising demand for petrochemical products on account of rapid industrialization and urbanization
• Upsurge in upstream activities due to the ever-growing price of oil
• Rising number of mature oil wells and the subsequent increase in oil exploration and production and field development activities

Key Restraints

• Rising environment consciousness and the subsequent adoption of environment-friendly alternatives such as electric vehicles
• Fluctuation of raw material prices

Intended Audience

• Oilfield Equipment Manufacturers and Other Stakeholders
• Major End-Users of Oilfield Industry
• Organizations, Forums, and Alliances Related to Oilfield Industry
• Government Bodies Such as Regulating Authorities and Policy Makers
• Market Research and Consulting Firms

Drilling Equipment – Largest Value Shareholder among the Segments by Equipment

The drilling equipment segment is a key growth contributor to the oilfield equipment market. The segment holds the largest market value share on account of the growing demand for oil and gas from petrochemical industries, refineries, retainers, and other oil-related industries. The market is slated to witness sustainable growth with an increase in exploration and production activities. Various ongoing drilling projects across the globe will also drive significant growth in the global oilfield equipment market.

Drill Pipe Segment – Largest Value Shareholder among the Segments by End-User Industries

The drill pipe segment holds the largest share in the global oilfield equipment market on account of applications in drilling operations, which include the transfer of drilling fluids several miles down into the earth’s crust while resisting the pressure differential between the inside surface and outside environment. The segment is recording significant growth in the upstream sectors of both onshore and offshore platforms, owing to growing investments and ongoing exploration and production activities on unconventional resources, including tight gas and shale gas. Recent innovation involving horizontal drilling and pad have decreased the downtime of drilling rigs, which in turn fuels the drilling equipment market. For instance, Kuwait Petroleum Corporation (KPC) has announced an investment of approx. USD 15 billion from 2015 to 2020 across the oil and gas section as part of its operational strategy. These investments from market players further supplement the market growth.

North America

North America holds the strongest share in the global oilfield equipment market, with the U.S., Canada, and Mexico leading demand in the region. Increasing energy consumption, coupled with the maturity of existing oil wells, stimulates oil and gas exploration activities in North America. The presence of market leaders such as GE Oil and Gas, Weatherford International, Schlumberger, and National Oilwell Varco Inc. is also supporting the market growth. Favorable government norms and investments are also slated to the growth momentum in the region. According to BP Statistical Review, the U.S. oil consumption rose by 721 million barrels per day in 2017 as compared to 2016.

The Middle East

The Middle East holds the second-largest share in the global oilfield equipment market, owing to the existing oilfields in Kuwait and the UAE, among others. The region’s share continues to rise with steady investments in large exploration and production activities on conventional and unconventional wells, which reinforces its eminent position in the oil and gas industry. In 2017, Saudi Aramco, the Saudi Arabian oil company, increased its global vertical with other regional players such as NOV and Schlumberger and received two contracts from Schlumberger for drilling rigs and entered a joint venture with NOV.

Key Players

The market is competitive in nature and a small number of oilfield equipment market participants hold sizeable market shares. Most notable market participants are GE Oil and Gas (U.S.), Schlumberger (U.S.), Weatherford International (U.S.), Pioneer Energy Services Corp. (U.S.), Superior Energy Services (U.S.), National Oilwell Varco, Inc. (U.S.), C&J Energy Services Ltd. (U.S.), Expro International Group Holding Ltd. (UK), Basic Energy Services, Inc. (U.S.), Wireline Engineering Ltd. (UK), SGS (Switzerland), Petrochemical Business Unit (Switzerland), and ABB Oil and Gas, among others.

Company and Industrial News

• In September 2019, Weatherford, a U.S. multinational oil and natural gas service company, signed a five-year procurement deal with Aramco, a Saudi Arabian oil company, to deliver completion, liners, cementation, and casing exit technologies
• In September 2019, GE, an American multinational company, sold a majority of oilfield services to Baker Hughes, an oilfield service company through common stock sale
• In August 2019, Weatherford signed an agreement worth USD 80 million with Equinor ASA for the deployment of linear hangers to reduce operating expenses
• In July 2019, Aberdeen-based OPEX Group shifted to its new office to increase in its customer base and accelerate the subsequent team expansion
• In July 2019, Halliburton, an American oil field service company, announced a contract with Kuwait Oil Co. worth USD 597 million for the exploration of oil off the coast of Kuwait
• In June 2019, C&J Energy and Keane agreed to a merger in order to offer services across the U.S. and expand their footprint in North America; the merger deal is pegged to be worth USD 1.8 billion
• In April 2019, Royal Dutch Shell plc, a British-Dutch oil and gas company, awarded Halliburton with a three-year offshore Brazil contract for an integrated service of salt development and pre-salt development exploration

Oilfield Equipment Market Segmentation

By Equipment

• Drilling equipment
• Field production machinery
• Pumps
• Valves
• Others

By End-Use Industries

• Drilling
• Drill pipe
• Drill collars
• Others

By Pressure and Flow Control

• BOP
• Valves
• Manifolds
• Others

By region

North America

• U.S.
• Canada
• Mexico

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Russia
• Poland
• Rest of Europe

Asia-Pacific

• Japan
• India
• China
• South Korea
• Australia
• Vietnam
• Indonesia
• Malaysia
• Singapore
• Rest of Asia-Pacific

Latin America

• Brazil
• Argentina
• Colombia
• Rest of Latin America

Middle East

• Saudi Arabia
• Oman
• Qatar
• Bahrain
• UAE
• Rest of ME

Africa

• Nigeria
• Tanzania
• South Africa
• Ghana
• Rest of Africa