Substantial Growth Expected in the Global Oilfield Services Market
Global oilfield services (OFS) expenditure is forecast to increase 47% from $354 billion (bn) in 2014 to $521bn in 2018, according to Douglas-Westwood’s (DW) new World Oilfield Services Market Forecast. The majority of global OFS spending occurs onshore, accounting for 79% of the total between 2009 and 2013. Despite an increased focus on offshore exploration and production, DW expects onshore unconventional development to boost the onshore spend to 81% over the forecast period.
Report analyst, Andy Jenkins, commented, “DW expects sustained increases in unconventional drilling to support further growth in North America’s share of global OFS expenditure, rising to 49% by 2018. However, the largest increase in OFS expenditure is expected in Asia, largely driven by increased onshore drilling in China and high decline rates at offshore fields in South East Asia. Significantly less growth in expenditure is forecast in Western Europe where a focus on drilling will continue within the region’s mature offshore fields in sustained efforts to improve existing recovery.
“Analysis of all major oilfield service segments shows that expenditure will be predominately led by increased rig and crew spending, with this cost centre representing around 43% of total OFS expenditure over the forecast period. Coiled tubing services and mud logging are two segments likely to see strong growth – increasing at a CAGR of 12% between 2014 and 2018. A steady increase in footage and drilling days is due to increasingly complex drilling techniques which are also expected to contribute to strong demand growth across service lines, particularly those impacted directly by the extended reach of wells such as cementing and tubing.”