The global well intervention market size was worth USD 12.45 billion in 2016. 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. 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 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.
U.S. well intervention market revenue by service, 2014 - 2025 (USD Billion)
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 presence of major players in the U.S. These factors are expected to propel the well intervention 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 Himalayan Action Research Center (HARC) is anticipated to drive the industry growth.
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 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 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 are 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 entry of sand particles into well bore and reservoir, and thus help to enhance productivity. Other important services include artificial lift, fishing, and re-perforation.
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.
Global well intervention market revenue by application, 2016 (%)
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.
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 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.
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 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.
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.
Base year for estimation
Actual estimates/Historical data
2014 - 2016
2017 - 2025
Revenue in USD million and CAGR from 2017 to 2025
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa
U.S., Canada, Mexico, UK, Russia, China, Australia, Brazil, Argentina, Saudi Arabia, Algeria, South Africa
Revenue forecast, company share, competitive landscape, growth factors and trends
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Segments covered in the report
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:
Service Outlook (Revenue, USD Million, 2014 - 2025)
Logging & Bottom Hole Survey
Tubing/Packer Failure & Repair
Sand Control Services
Application Outlook (Revenue, USD Million, 2014 - 2025)
Regional Outlook (Revenue, USD Million, 2014 - 2025)
Central & South America
Middle East & Africa
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