Sudden surge of energy demand is being experienced globally. As a result, oil yielding activities have seen an increase in frequency and intensity leading to increase in use of required equipments. Rising oil and gas extraction activities for energy source production is expected to increase the usage of these equipments. High performance and reliable equipments are required to achieve results from extraction operations. Oilfield equipments have varying usage for the purpose of oil extraction from underground or under sea bed sources. Broad categories of these equipments are drilling equipments, pumps & valves and field processing and production machineries. Other equipments are surveying machinery, derricks, etc. Major investments into developing reliability of these equipments are taking place, to improve productivity, recovery and efficiency of extraction operations. Not only firms but many governments have also been involved in encouraging these developments with an aim of improving self-dependency. Not only productivity but safety is also a key aspect in these operations. Strict guidelines are followed to ensure safety of involved workforce.
Technologies are been developed to enhance the safety features of these equipments. Shift towards other unconventional and small sources for energy extraction is expected to push market growth. The rental business model has been hindering the growth of this market with rotational use of limited resources. Nevertheless, with growth of oilfields services market, this industry is also expected to grow. Many new equipment rental companies will increase the demand for oilfields equipments in the market. Oilfield equipments require large investments for technical support and manufacturing. Design and production of these equipments involves huge capital. It turns out to be a capital intensive market for the reasons of risks and low reliability issues associated with its drilling operations. Many small players are unable to make these investments, stunting the market growth. The expertise level is high and developmental work progresses in complexity for safety, demanding skilled workforce. Geopolitical factors and regulatory policies threaten the quick growth rate of this market. With shift in focus to clean and renewable sources for energy, oil and natural gas extraction activities might experience a slow down over the forecasted period of time leading to slow down of oilfield equipments market as well.
Different types of equipments are used for performing different functions. These functions involve extraction, processing and transportation of oil extracted. The drilling equipments particular to oil extraction are drilling rigs or augers. An oil platform houses the massive drilling rigs for off shore operations. Augers or portable drilling rigs are used to reach small, inaccessible source locations especially swampy areas. Pumps and valves are used to direct the flow of oil from its source. In addition, they are used to separate the water flow that accompanies extraction of oil. An oilfield being distant and isolated, transportation of oil with less wastage raises concerns. This is handled by setting up pipeline transport systems with the help of these pumps and valves. Several equipments are required for the treatment of crude material extracted from the oilfields. Major removable impurities are separated at the initial stage before its transportation to refineries.
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Middle East countries form a prominent share of the consumer market with their extensive oil resources and extraction businesses. North America and Europe utilize products from this market for crude oil and natural gas extraction operations to meet their extensive demands. Growing economies of Asia Pacific are also driving growth of this market by utilization of the equipments for extraction of oil along its vast resource rich coastline.
Few oilfield equipments market players include Aker Solutions, FMC Technologies, Cameron International, Baker Hughes, ENI, Halliburton, Weatherford International, Schlumberger, National Oilwell Varco Incorporated, Zenith Oilfield Technology, Transocean, Abbot Group, etc. With many small scale players present in oilfields equipments industry spread across various geographies, the market fragmented in nature.