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well testing services market

Well Testing Services Market Share, Size, Trends, Industry Analysis Report, By Application (Onshore, Offshore); By Well Type (Horizontal Wells, Vertical Wells); By Service; By Stages; By Region; Segment Forecast, 2022 - 2030

  • Published Date: Jul 2022
  • Pages: 119
  • Format: PDF
  • Report ID: PM2380
  • Base Year: 2021
  • Historical Data: 2018 - 2020

Report Summary

The global well testing services market was valued at USD 6.50 billion in 2021 and is expected to grow at a CAGR of 6.2% during the forecast period. The surging market demand for energy and its resources, coupled with the rising investments in exploration & production activities, are the chief factors anticipated to accelerate the global well testing services market growth.

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The ability of the reservoir to produce hydrocarbons, such as oil and gas, and condensates, is a feature of the testing monitors. These hydrocarbons are used in various applications, including formation pressure measurement, skin interpretation and permeability, fluid characterization, and reservoir characterization.

As a result, the market demand is expected to increase due to these sectors' increasing use. Additionally, it is projected that increased demand for high precision Measuring While Drilling (MWD) and reservoir condition measurement tools would support the testing services sector. Additionally, increased government assistance for discovering unconventional oil & gas deposits and a growing focus on unconventional oil & gas reserves are attractive potential for future worldwide market expansion.

The outbreak of the COVID-19 shows a significant impact on almost every sector of the economy. To prevent the spread of the virus government was forced to execute several measures like stringent social distancing norms and lockdown. Accordingly, the spread of COVID-19 exhibits a significant threat in the oil & gas sector. More than 15 globally leading oil & gas companies declared a substantial cut down in their capital spending programs.

Declines in the demand for oil & gas during this time also influenced transportation and related industries. Therefore, these problems had disrupted the various development operations of key businesses, which had limited the need for testing services in the sector. Due to the quick accumulation of oil stockpiles, which flooded the available storage spaces in various places and caused a decline in prices, this epidemic has interrupted production efforts. As a result, the COVID-19 has impeded upstream activity, which has a detrimental effect on the global expansion of the industry.

Industry Dynamics

Growth Drivers
The main drivers of the global demand for testing services are the increasing investment in discovering and using unconventional oil and gas resources. Unconventional oil & gas resources require particular extraction or production techniques since they do not occur in traditional formations.

These resources typically include natural gas hydrates, tight oil and gas, shale gas, and coalbed methane (CBM). These resources are identical to the other traditional oil and gas resources. Conventional resources are plentiful, but their production is sufficient to meet the market's current need for well testing services. Because of the escalating price of oil, unconventional oil and gas resources are substantially gaining ground.

Unconventional oil & gas resources are extensively used owing to the rising use of conventional resources. For instance, according to the International Energy Agency (IEA) World Energy Outlook 2009, the production of unconventional oil production was accounted for the 1.8 mb/d in 2008, which will rise to 7.4 mb/d by 2030.

Also, by 2035, global unconventional oil production is anticipated to grow to 15.3% of the total global oil production. Therefore, increasing unconventional oil & gas production leads to the rising interest in extensive exploration activities, which, in turn, surges the well testing services market demand for testing services in the exploration sites worldwide.

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Report Segmentation

The market is primarily segmented on the basis of services, application, well type, stages, and region.

By Services

By Application

By Well Type

By Stages

By Region

  • Downhole Testing
  • Surface Testing
  • Reservoir Sampling
  • Real Time Testing
  • Hydraulic Fracturing Method Testing
  • Onshore
  • Offshore
  • Horizontal
  • Vertical
  • Exploration, Appraisal and Development
  • Production
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Spain, Netherlands, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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Insight by Application

The onshore market segment is recorded to hold the largest revenue share and is expected to dominate the global market in the forecasting years. Onshore drilling refers to all dry land drilling sites, which account for 70% of world oil output. A catalyst for the expansion of the market sector is expected to be the rising investment in onshore exploration and re-exploration operations, along with the growing number of technology advancements to achieve cost and operational excellence.

The demand for the sector is further supported by the government's expanding backing for the growth of the oil & gas industry. For instance, the Oil and Natural Gas Corporation (ONGC) announced in 2019 that it had donated INR 6,000 crore to the drilling of 200 wells in Assam over the following seven years to increase the state's oil production and gas.

Thereby, rising investment in the onshore oil & gas sector, increasing focus on crude oil price stability, and growing exploration of unconventional resources are driving the global segment growth.

The offshore market segment is projected to witness a progressive growth rate in the forecasting years. The rising inclination for the offshore oil & gas field and the rising application of testing services in the offshore areas such as pipelines, reservoirs, and production facilities are attributed to the segment growth.

The main goal of the offshore application is to investigate underground geological formations to carry out industrial procedures to extract oil & gas. Additionally, many businesses are leaning toward expanding into new territories, which will inevitably include activities in multiple distant and deeper offshore places. In the upcoming years, it is anticipated that these factors will increase segment demand.

Geographic Overview

North America accounted for the largest revenue share in the global well testing services market. The presence of vast shale reserves, coupled with the rising investments in the exploration and production of these resources by the oilfield operators, are consequently propelling the market demand for testing services.

The U.S. was the largest producer of oil & gas as of 2019, with above 900,000 active oil & gas wells, and nearly 130,000 have been drilled since 2010. Also, in 2018, the United States recorded three vital oil discoveries, encompassing one at Appomattox (140 Mb) underneath 2,300 m of water and two in the Gulf of Mexico, at Ballymore (545 Mb) at a below 2,000 m underwater.

Additionally, it is anticipated that the Asia Pacific will see the most significant CAGR over the forecasted years. The main market demand drivers are the increasing number of testing services and increased investments in the oil and gas industry, particularly in China, India, and Indonesia.

Additionally, it is projected that growing expenditure on the discovery of oil reserves, burgeoning expansion of the energy & power sectors, and increased drilling activity would all provide different potential changes to the market's development over the coming years.

Competitive Insight

Some of the major players operating in the global well testing services market include Baker Hughes, Edge Drilling, EXALO Drilling SA, EXPRO Group, Greene's Energy Group, Halliburton, National Energy Services Reunited, Oilserv, Schlumberger Limited, SGS SA, Stuart Wells Limited, TechnipFMC, Tetra Technologies, Inc., Weatherford, and Wellmax.

Well Testing Services Market Report Scope

Report Attributes

Details

Market size value in 2021

USD 6.50 Billion

Revenue forecast in 2030

USD 10.97 Billion

CAGR

6.2% from 2022 - 2030

Base year

2021

Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD Billion and CAGR from 2022 to 2030

Segments covered

By Services, By Application, By Well Type, By Stages, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Key companies

Baker Hughes, Edge Drilling, EXALO Drilling SA, EXPRO Group, Greene’s Energy Group, Halliburton, National Energy Services Reunited, Oilserv, Schlumberger Limited, SGS SA, Stuart Wells Limited, TechnipFMC, Tetra Technologies, Inc., Weatherford, and Wellmax

 

Key Take-Away
Polaris Market Research
Well Testing Services Market Size Global Report, 2022 - 2030