GVR Report cover Well Intervention Market Size, Share & Trends Report

Well Intervention Market Size, Share & Trends Analysis Report By Service (Logging & Bottom Hole Survey, Stimulation, Remedial Cementing, Zonal Isolation, Sand Control Services, Artificial Lift, Fishing), By Application, And Segment Forecasts, 2018 - 2025

  • Report ID: GVR-1-68038-914-2
  • Number of Pages: 122
  • Format: Electronic (PDF)

Report Overview

The global well intervention market size to be valued at USD 17.7 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 4.2% during the forecast period. Increasing demand for energy and development of new oilfields is expected to be a key factor driving market growth. Rising E&P to enhance productivity in conventional oil & gas fields particularly in Saudi Arabia, the U.S., Canada, China, and Russia is expected to steer drilling activities. The presence of vast unexplored hydrocarbon rich reserves both in onshore and offshore basins coupled with significant dependence of various economies in the industry is expected to propel the market growth in the near future. High rate of deep sea and ultra-deep sea explorations particularly in the North Sea, South China Sea, Gulf of Mexico, and the Persian Gulf is estimated to drive well intervention demand over the forecast period.

Well Intervention Market revenue, by service

Well intervention market by services in the U.S. was USD 7.06 billion in 2016 and is expected to grow significantly over the forecast period. Increasing demand for its services on account of growing energy demand, rising disposable income, and the presence of major players in the U.S. These factors are expected to propel the market in this region.

Petroleum production companies have a department dedicated to well intervention services, which helps in handling production matters. Services department within a company is highly advantageous since it permits accumulation of resources, experience, and talent for managing E&P activities.

Companies are investing in R&D activities and are striving towards the development of environmentally friendly well intervention services. Development of new product, including bio treatment portable plant for treating waste and hazardous emissions, by organizations such as the Himalayan Action Research Center (HARC) is anticipated to drive the industry growth.

Well Intervention Market Trends

Aging or matured oil and gas field is a major factor driving the growth of the well intervention market. A field is characterized as aged when its overall production capacity is declined. The key problem faced by such fields is the uneconomical process of production of oil and technological limitations faced by the operators to recover oil reserves. In addition, such fields are frequently observed to be equipped with obsolete equipment or infrastructure, new well interventions, on the other hand, provide solutions for such problems.

Technological advancements have enhanced the digitalization and automation of intervention services. The industry is flowing with innovations that ensure superior recovery from oil and gas reserves. For instance, the upstream operators are now preferring digital slickline methods over conventional operations. The digital wireline logging (e-line) offers the operators real-time downhole information. This feature helps in eliminating the costly re-runs and increases the success rate of long, challenging runs. These technological developments created growth opportunities in the market.

Non-renewable energy resources such as coal, oil, and natural gas are limited in supply and cannot be used sustainably. Therefore, a wide shift in the use of renewable energy resources such as solar energy, water, wind, and other sources for generating power has been taken into consideration. In addition, strict government regulations in oil and gas industries for exploration and production activities act as a restraining factor to the well intervention market.

Service Insights

Well intervention services are utilized to make the most out of an oil & gas wells, and also to clean up after drilling activities. Service of logging & bottom hole survey is utilized, to monitor corrosion, cementing, packer settings, perforations, radioactivity, formation fluids, temperature survey, and plug settings. Simple surface pressure control equipment is utilized to carry out services in conditions such as, overbalanced, and are often accomplished by means of logging cables.

Tubing mechanism enables suspension, extraction, and insertion of cylindrical strings, with the presence of surface pressure for E&P purposes. Packer is sent into the wellbore with a small outside diameter, which then expands to seal the desired section. Failure of tubing and packer mechanism disrupts the operations. Owing to this failure, the service of tubing/packer failure & repair is employed to rectify discrepancies.

Stimulation is a service, which improves hydrocarbon flow into the wellbore from the drainage area of an oil or gas reservoir. This service helps to increase production, by opening new tracks and channels in formations to enable smooth flow of oil and gas. The service of remedial cementing is performed on an oil & gas well to fix primary cement job issues.

Annular with short term and long-term life span is utilized to seal desired sections and thus to provide zonal isolation. These isolations protect formations against damage, preserve reservoir integrity, and improve safety. Sand control services are utilized to prevent the entry of sand particles into wellbore and reservoir, and thus help to enhance productivity. Other important services include artificial lift, fishing, and re-perforation.

Application Insights

The global demand for well intervention is increasing owing to rising development of new oilfields. Onshore emerged as the largest application segment and accounted for over 65.5% of the total market revenue in 2016.

Well Intervention Market revenue, by application

Location of a well is a large contributing factor for the selection of drilling equipment and related services. Drilling string is then attached to drilling bit, which is used for drilling advances. This mechanism is then suspended in wellbore and oil or gas resources are extracted with the aid of tubular drilling string.

Drilling string in onshore drilling contacts the borehole casing in cyclic time periods and thus becomes subject of frictional wear and tear. This frictional wear and tear then needs to be repaired, by shutting down the drilling rig. The well also needs to be serviced owing to constant drilling activities; for this purpose, well intervention services including, sidetracking of wells, installation of remedial cementing are employed.

Offshore drilling is done below the seabed and includes shale fracking, pre-salt drilling, and deepwater drilling. Well interventions services for offshore drilling are provided through various facilities including, deepwater mobile offshore drilling units, floating platforms, combined drilling & production facilities, and bottom founded drilling rigs. Offshore drilling is highly costly owing to the logistics involved. Offshore drilling requires a considerable amount of time as compared to onshore drilling methodology.

Tool joints and hard banding systems are utilized for rectifying wear and tear of drilling system in the offshore region. Sensors are also attached to these hard banding systems, and drilling bit is heated or cooled according to the requirement of surrounding conditions. Offshore drilling also bears some hazards and risks as marine pollution and weather can disrupt drilling operations and also harm the operators.

Regional Insights

North America was the leading market and accounted for 77.7% of the overall market revenue in 2016. The regional market witnessed a surge in crude oil production by an average growth of over 10% and natural gas production by over 5% from 2013 to 2014. Factors such as the quest for finding potential untapped oil and gas reserves, increasing offshore drilling activities in the Gulf of Mexico, and shale boom, are expected to drive market growth over the forecast period.

Well Intervention Market Trends by Region

Numerous ongoing operations in the Middle East & Africa region in major oilfields including Khurais, Ghawar, Shaybah, and Safaniya are expected to play a vital role in oil & gas industry growth in the region. Qatar has witnessed large scale projects in natural gas development and exports for downstream industries that utilize it as a feedstock. The presence of mega projects including Total, Shell, ExxonMobil, and ConocoPhillips is expected to drive the LNG sector in the region.

Deploying advanced techniques such as enhanced oil recovery (EOR) for oil exploration activity in fields including Al-Shaheen, Bu Hanine, Dukhan, and Idd al-Shargi is expected to drive oil E&P in the region, over the next eight years. Growing demand for fuel, air conditioning, and other industrial cooling equipment, owing to rising industrialization and hospitality sector, is expected to drive market demand in this region.

Key Companies & Market Share Insights

Few major players and new entrants characterize the global well intervention industry. The market is highly competitive and fairly concentrated. Key market participants include Schlumberger Limited, Baker Hughes, Halliburton, Weatherford International Inc., and Archer Limited. Well intervention manufacturing companies are shifting their focus on developing a complete solution including all services required for production and servicing over the entire life span of an oil & gas well, for oil producers to maximize their revenues and gain a competitive advantage over other industry participants.

Customized products and application development are projected to be a key parameter for being competitive in this industry, with various acquisitions, mergers, and joint ventures, being undertaken as an attempt to diversify product portfolio and gain market share. In 2016, Rosneft had announced investment plans for a joint venture with Petromonagas in Venezuela. The company invested USD 500 million and increased its stakes from 16.7 percent to 40 percent. Kuwait Oil Company adopted various strategic initiatives such as contract bidding and acquisition of stakes to develop to develop the country’s Ratqa heavy oil field. 

Recent Development

  • In May 2022, Baker Hughes an American energy services firm launched a new subsea wellhead technology - the MS-2 Annulus Seal. The optimized technology is stated to lower the cost of well construction and intervention by reducing rig trips, in turn saving substantial operational rig costs.

  • In March 2022, Baker Hughes announced the signing of an agreement to acquire Altus Intervention, an international facility with more than 40 years of industry experience in down-hole oil & gas technology and well intervention services.

  • In November 2021, Expro, headquartered in Houston, Texas, an energy services provider announced the launch of Galea™ which is said to be the world’s first fully autonomous well intervention system. The company stated the product will maximize production while reducing HSE risks, intervention costs, and environmental impact.

  • In June 2021, Paradigm, Netherlands, an upstream oil and gas technology and services company announced the launch of a sustainable ultra-low carbon well intervention - the i-Winch® for Capex-constrained oilfield services market.

  • In June 2020, Wellvene, well solutions engineering manufacturing company, launched new production and annulus bore plug & abandonment tool package.

Well Intervention Market Report Scope

Report Attribute

Details

Revenue forecast in 2025

USD 17.7 billion

Growth rate

CAGR of 4.2% from 2018 to 2025

Base year for estimation

2016

Historical data

2014 - 2016

Forecast period

2017 - 2025

Quantitative units

Revenue in USD billion and CAGR from 2017 to 2025

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Service, application, and region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; Mexico; UK; Russia; China; Australia; Brazil; Argentina; Saudi Arabia; Algeria; South Africa

Key companies profiled

Schlumberger Limited; Baker Hughes; Halliburton; Weatherford International Inc.; Archer Limited.

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Global Well Intervention Market Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global well intervention market on the basis of service, application, and region.

Global Well Intervention Market Segmentation

  • Service Outlook (Revenue, USD Million, 2014 - 2025)

    • Logging & Bottom Hole Survey

    • Tubing/Packer Failure & Repair

    • Stimulation

    • Remedial Cementing

    • Zonal Isolation

    • Sand Control Services

    • Artificial Lift

    • Fishing

    • Re-Perforation

    • Others

  • Application Outlook (Revenue, USD Million, 2014 - 2025)

    • Onshore

    • Offshore

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • The U.S.

      • Canada

      • Mexico

    • Europe

      • UK

      • Russia

    • Asia Pacific

      • China

      • Australia

    • Central & South America

      • Brazil

      • Argentina

    • Middle East & Africa

      • Saudi Arabia

      • Algeria

      • South Africa

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