Well Cementing Services Market Size, Regional Outlook, Application Development Potential, Price Trends, COVID-19 Impact Analysis, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI2567
Well Cementing Services Market size will expand over 2021-2027 on account of increasing oil and gas drilling and completion activities worldwide. The industry is witnessing investments in the onshore oil and gas sector across the Middle East and exploration of unconventional resources around America.
Well cementing provides the service of filling the cement in the well bore. It creates a bond between the formation and the pipe. It has become pivotal in the drilling activity and prevents the slurry that can come out of the walls. Primary cementing and remedial cementing services are utilized to prevent pollution of freshwater zones and plug cementing services, auguring well for the industry expansion.
Based on type, the primary cementing segment will expand at a robust CAGR during the 2021-2027 forecast period. Primary cementing is used to foster the well casing, restrict liquid movement between hydrocarbon formations. It helps in zonal isolation to support the liner string and casing and prevent migration of fluids in the annulus. Increased traction for primary cementing is partly attributed to its ability to support the casing’s weight and prevent the collapse of unconsolidated formations.
Well cementing services market share from the remedial cementing segment will witness an upward growth trajectory by 2027. Surging demand for rehabilitation of oil and gas wells will boost the segment growth. With the need to rectify primary cementing jobs, remedial cementing such as plug cementing and squeeze cementing will gain prominence globally.
On the basis of application, onshore cementing will account for above-average growth with consistent investment in ongoing projects. A rise in the onshore drilling activities will escalate the demand for well cementing services. Various onshore fields have also witnessed a rise in the number of research activities to boost reserve output and oil well production.
In terms of revenue, the offshore cementing application segment is expected to grow at a notable pace over the next few years. Increasing exploration activities in the Gulf of Mexico and the South China Sea will reinforce the demand for cementing in offshore wells. According to the U.S. Energy Information Administration (EIA), around 14.6% of the U.S. crude oil stemmed from offshore wells in 2020 in the Gulf of Mexico (in the federally administrated waters). Moreover, technological advancements and rising drilling operations are likely to foster the position of well cementing companies.
With respect to region, North America well cementing services market volume will gain substantial ground during the forecast period. Increasing crude oil production in the U.S. has encouraged stakeholders to fuel investments in the region. For instance, the U.S. EIA states that the U.S. accounted for a 15% share of the world crude oil production in 2020, maintaining its lead position. Well cementing services are poised to gain prominence with surging offshore drilling activities and investments in Texas, North Dakota, New Mexico, Oklahoma and Colorado.
Key players in the global well cementing services market are ExxonMobil, Halliburton, Schlumberger, Gulf Energy, China Oilfield Services, Calfrac Well Services, GE Baker Hughes and Weatherford, among others. Oil companies are expected to make decisions based on organic and inorganic strategies. In June 2021, ExxonMobil announced the discovery at Longtail-3 offshore Guyana. It will help them augment their exploration campaign and growth opportunities. ExxonMobil used two additional drillships in Q1 2021.
Well cementing services market trends during the COVID-19 pandemic
A dramatic plunge in oil production in 2020 has potentially hampered the industry forecast. For instance, U.S. crude oil production witnessed an 8% drop in 2020. A plunge in the demand for the primary cementing service owing to a moderate decline in onshore drilling activities may slightly slow down global well cementing services market forecast.
Oil producers and other stakeholders expect a moderate rise in drilling activities over the next few years. Discoveries of oil and gas reserves and the existing need for exploration activities will drive well cementing services adoption. A strong outlook for petroleum based products is keeping the O&G sector afloat amid increasing focus on renewables.
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