The global well cementing services market is anticipated to reach USD 13.38 billion by 2026 according to a new study published by Polaris Market Research.
Well cementing operations are the vital part of well completion process that plays the major function of permanently stopping water to penetrate into the well. The major function is to permanently seal the lost circulation areas wherever there is reduced flow within the wellbore. In the past four to five years, oil and gas industry has been greatly violated owing to massive fluctuations in crude oil and gas prices. Increasing production from unconventional reserves has been a major factor driving demand for these services. With several discoveries of new reserves demand for well cementing services market is expected to grow substantially over the forecast period.
The cementing services for the petroleum industry are in the growth stage of its economic cycle. It is characterized by an increasing number of new service providers entering the industry space. These service providers of cementing have benefited more and more from oil & gas wells that require cement for sealing and casing wells. The dip in crude prices has however significantly affected the well cementing services market up to certain extent. Stringent regulations regarding cementing processes and its materials are anticipated to restrain the market in several geographies. As this industry is fully dependent on production of oil and gas and its low prices has been a major concern. The dip in crude prices is anticipated to enhance strong economic growth however; the situation has disrupted regional growth among the oil producing nations. API standards for the cement used for cementing services have several classifications and different grades of cement are used in different geographies. Remedial well cementing services have been very popular in the low crude price era. Several new unexplored reserves in Brazil, China, Russia and several parts of Europe is expected to drive further the well cementing services market in the coming years.
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Onshore segment was the largest application sector in the well cementing services market owing to the presence of large number of fields compared to offshore. However, increasing rate of exploration for offshore oilfields has been projected to drive cementing services at a faster rate compared to onshore applications. The recent discoveries of new oil and gas reserves in the African region are anticipated to drive the market with new opportunities for further expansion. The Middle East region has been the largest regional well cementing services market. However, North American regional industry growth has been growing faster owing to the recent shale reserves discovered.
Furthermore, North America was one of the potential regional markets apart from the Middle East region. Increasing exploration and production from shale reserves in the region is the major driving factor. Moreover, with the rising trend for sustainable production and development of energy in the U.S., energy companies have been focusing more on hydrocarbon extraction from unconventional reserves along with the conventional ones. Hence, this trend is expected to drive the for 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.