The global completion equipment market is expected to grow over the forecast period. Growing E&P activities globally owing to ever-increasing energy needs are expected to remain a key driver for market growth over the forecast period. Global energy demand is expected to reach four gigatons of oil equivalent (GTOE) by 2020. This has led to increased pressure on the E&P companies to extract more hydrocarbons from existing wells using advanced techniques. This, in turn, is expected to foster deep exploration activities on a large scale, particularly in the Gulf of Mexico, the South China Sea, and the North Sea. This is expected to augment completion equipment demand over the next seven years. The rapid development of unconventional resources is also one of the key factors contributing to market growth. Increased efficiency in deep waters and ultra-deep waters along with enhanced completion efficiency has resulted in maximized production capabilities by market participants. This has led to well completion equipment market demand on a large scale.
High capital investment coupled with a lack of skilled labor is a major challenge to the market growth. Additionally, stringent environmental norms& regulations and depletion of a number of active wells are also expected to hinder completion equipment market growth over the next few years. North America dominated this market and accounted for over two-fifths of the total market revenue in 2014. This may be attributed to the presence of several oil field services companies and the use of advanced technologies on a large scale. The U.S. was the largest consumer of completion equipment in the region on account of the shale boom backed by the major players in the market. China was the major contributor in the Asia Pacific region with over 65 % of the total market share in 2014 and is expected to witness significant growth over the forecast period. This may be attributed to the development of unconventional reserves such as Shale and CBM. The European region is expected to witness above-average growth rates in the subsequent years owing to increased deepwater drilling in the North Sea. Countries such as Norway, the Netherlands, and Russia present lucrative opportunities for market participants over the near future.
Completion equipment consists of casings, cementing materials & equipment, perforating guns, gravel packing, and wellheads. Casings contributed a major share of the market revenue over the last few years owing to increased installation in tight and unconventional reservoirs. The product segment is expected to lose share to high growth completion equipment such as gravel packing. Perforating guns are expected to witness significant growth in demand on account of increased application in hydrofracking and horizontal drilling.
Key players operating in the completion equipment market include Schlumberger, Halliburton, Baker Hughes, and Weatherford. The market is highly consolidated with the aforementioned companies accounting for over 70% of the market share in 2014. These companies are involved in aggressive M&A in order to increase market share. For instance, Halliburton recently acquired Baker Hughes for USD 35.0 billion.
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.
Contact us now to get our best pricing.
We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure.
"The quality of research they have done for us has been excellent."
The ongoing pandemic has led to a decline in exploration activities in the oil & gas sector. A number of EPC projects have also witnessed an indefinite pause that has transpired into a slump in the requirement for drilling and excavation services. Economic repercussions of the trend are expected to be highly evident in the Middle East. The report will account for Covid19 as a key market contributor.