Wireline Logging Service Market Analysis By Technology (Slickline, E-Line), By Hole Type (Open Hole, Cased Hole) And Segment Forecasts To 2022

Industry Insights

The global wireline logging service market exceeded USD 16 billion in 2014. Potential increase in real-time data gathering through electric tools and increased production & exploration activities across the globe are estimated to drive demand over the forecast period.

Increase in crude oil prices is estimated to result in regress investments leading to rise in the number of new projects, which is further expected to influence world energy demand by 2020. This has also increased the pressure to extract more from each well, further lowering the exploration level.

Further, technological developments and increased focus on natural gas production are also expected to surge demand for the wireline logging service market over the forecast period. Surging demand for intensive R&D has led to the development of sophisticated high-end products, which are delivered to provide control to meet process requirements and for ease of use.

Potential increase in recoverable resources and completion activities within North America is expected to drive demand over the forecast period.

Rising production has benefited the services owing to the versatile nature and reduced profit margin from oilfield services. This has generated the need to optimize the E&P activities involving reservoir evaluation, which is the major application. Although, stringent regulations, issues associated with the environment, and increased seismic activities are expected to curb growth over the next few years.

Conditions such as high temperature, high pressure, and ultra-deepwater of new reservoirs build new challenges leading to innovative solutions to address changing technologies and business practices. For instance, Halliburton launched VisiTrak geospatial navigation and analysis LWD for combining advanced pre-well modeling and precise reservoir navigation to improve efficiency and to facilitate optimal placement for increased hydrocarbon recovery.

Technology Insights

The industry can be categorized by technology into slickline and E-line segments. E-line technology accounted for over 57% in 2014 and is estimated to grow at a CAGR of over 9% from 2015 to 2022. It can be categorized under strong and heavier wirelines and uses an inner core of enclosed wires within a plait wireline for transmitting electrical signals between downhole tools and surface equipment. These services are primarily utilized for tube perforating and well logging operations, as these operations require continuous evaluation through electric tools and are capable of transmitting data continuously to the surface.

Slickline services can measure the depth of the well, well perforation, temperatures, and downhole pressures. This service is primarily used for recovering and placing the well equipment to the surface for maintaining the production level of wells through logging and intervention processes.

Hole Type Insights

The industry can be categorized on the basis of hole type into cased hole and open hole. Cased-hole services market accounted for over 80% of the overall revenue in 2014. It involves the evaluation of well by deploying evaluation tools after the completion of the process within the well.

Open hole refers to operations that are performed before the wellbore has been ceased and cemented, whereas cased hole involves retrieving the measurements through the metal piping into the well during completion operations. Open-hole operations are involved with the deployment of electric tools into a newly drilled well through the electric line.

Regional Insights

In North America, the wireline logging service market is anticipated to witness substantial demand, growing at a CAGR of over 9% by 2022 owing to continuous increment in the U.S. exploration and production activities. Further, favorable government regulations, unconventional recovery of hydrocarbon, and its growth are anticipated to be the key driving factors across this region. By 2020, over half of the natural gas produced in the U.S. is expected to come from horizontal well that includes shale sources and tight sands. In Asia Pacific, the market is expected to witness moderate growth owing to increase in the pace of oil & gas exploration across this region.

Competitive Market Share Insights

Companies dominating the wireline logging service market share include Halliburton, Schlumberger, Weatherford International, Baker Hughes, and Superior Energy Services. Heavy investments are being made in R&D for improving the technologies and various technological advancements across well construction & resource recovery are expected to be few key drivers for the players.

Key product development and competent distributive channel are anticipated to be the key factors for competitive advantage. In 2014, Baker Hughes and TMK of Russia announced the signing of letter of intent to mutually develop integrated well completion solutions.

Other leading players include Nabors Industries, Casedhole Solutions, Expro International Group Holdings, OilServe (UAE), and Pioneer Energy Services. To cater to the increasing demand for services, the industries are anticipated to follow the trend of mergers and acquisitions and are more focused on developing & launching new products or services or technologies for increasing the market penetration and presence across the globe.