The worldwide well cementing services market is anticipated to grow at a CAGR of 4.9% between 2018 and 2026.
The increasing demand for energy, hence forth the expansion of oil & gas exploration and production towards new fields, deep strata, drilling and completion engineering confront with several cementing problems. But, the increasing demand for hydrocarbon has also led to significant technological developments that has helped in solving cementing problems under complex operating and geologic conditions including brine, salt gypsum formations, HTHP, long cemented sections, sour gas reservoirs etc.
Anti-channeling evaluation method, close packaging method, cement ring failure evaluation, etc. and other complex oil and gas well cementing technologies such as leak well, deep well, horizontal well, salt gypsum, glass storage cementing processes are the recently developed and most widely used technologies currently. Industry participants have been developing partnerships among themselves and developing several novel well cement types for improved and more efficient operational advantages.
North America Well Cementing Services Market Share By Process Type, 2017-2026
Note: Inside circle depicts data for 2017 & outside circle depicts data for 2026
Increasing need for hydrocarbon fuels for the growing population has been the indirect but the main source of product demand which influences the well cementing services market during the forecast period. Gains in oil and gas prices in 2017 compared to the previous years has been rebalancing the demand and supply fundamentals, which is partly accelerated by the OPEC’s decision to cut production till 2018 will drive higher exploration of new wells by the end of the year. This in turn, within two years will increase E&P operations hence leading to increasing demand for well cementing services. Rising concern for sustainable development of energy production has resulted in increasing exploration of the unconventional reserves and U.S. is the leading player in the resent industry scenario occupying a major space in the global well cementing services market. These shift in trends for hydrocarbon production are considered as the additional sources for driving demand for well cementing over the forecast period.
The global well cementing services industry is segmented based on type of cementing processes, application areas and regional markets. Types of cementing processes are further subdivided into primary cementing, remedial cementing and others. Application segments include onshore and offshore fields.
Primary cementing services was the largest segment in 2017 in the global well cementing services market. Increasing drilling operations for production of oil and gas from unconventional reserves including tight gas, shale gas, CBM reserves will increase further demand for primary well cementing services over the forecast period. Onshore was the largest application sector, with the maximum number of oil & gas wells globally compared to offshore wells. Proven new onshore reserves in the MEA region is expected to further drive investments of these services in these onshore wells.
North America Well Cementing Services Market, By Process Type, 2017 – 2026
Geographically, the well cementing services market is segmented across North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.
Middle East and Africa was the leading regional market in 2017 the global well cementing services market. In the regional market several oil and gas companies focused on consolidation last year. The region has the largest oil and gas reserves in the world with major part of the global exploration and production operations taking place in the region. With the expected increase of production by the initial phase of 2020, demand for well cementing services will also increase simultaneously in the region.
Middle East was the largest regional market in 2017 in the well cementing services market. The region has the largest hydrocarbon reserves and with the highest production figures. North America’s recent shale exploration and production has been the major factor driving the regional well cementing services market.
Some of the leading industry participants in the well cementing services market include Gulf Energy LLC, Sanjel Corporation, Condor Energy Services Ltd., Nabors Industries Ltd., Calfrac Well Services Ltd., Trican Well Service Ltd., Schlumberger Limited, Weatherford International Inc., Halliburton, Inc., Baker Hughes Inc., Nine Energy Service, Inc., Consolidated Oil Well Services, Magnum Cementing Services Ltd., Viking Services, Tenaris, Vallourec, Top-Co and China Oilfield Services Ltd.