Wireline Services Market Growth Slowing

  • North America is expected to dominate the global wireline services market.
  • The onshore segment is expected to hold the largest share of the wireline service.
  • Cased-Hole expected to be the largest segment in the wireline services.

The wireline services market is expected to grow from an estimated $8.26 billion in 2016 to $9.15 billion by 2021, at a CAGR of 2.1%. The global market is set to witness growth, due to the aging reservoirs, increasing oil production, and lifting of Iranian oil export sanctions. Also, oil export sanctions on Iran were lifted in January 2016, allowing the country to export oil. This has led to an increase in Exploration & Production investments in the country, leading to a rise in oil production.

Slow market growth can be attributed to the slump in oil prices since 2014 last quarter and is continuing. This has led to reduction in new drilling operations across the globe, mainly in North America and European region. However, in spite of low oil price, oil production is rising due to growing demand of oil leading to higher demand for well intervention services to boost production from existing wells. This is the major driving factor for wireline services market. The North American market is projected to be the largest for wireline services by 2021, due to the high growth in manufacturing, chemicals, petrochemicals, oil & gas industries in the region

North America: The leading market for wireline services

North America is expected to dominate the global wireline services market, given the increasing shale gas production in U.S. and the offshore production in the U.S. Gulf of Mexico. The Middle East market is projected to grow at the highest CAGR from 2016 to 2021 due to the high use of enhanced oil recovery techniques in the region and the high oil production in the region. Qatar, Kuwait, and Saudi Arabia are expected to drive the wireline services market in the Middle East region.

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The Middle East market is projected to grow at the highest CAGR from 2016 to 2021 due to the high use of enhanced oil recovery techniques in the region and the high oil production in the region. Qatar, Kuwait, and Saudi Arabia are expected to drive the wireline service market in the Middle East region.

The onshore segment is expected to hold the largest share of the wireline service

The onshore segment led the wireline services market in 2015, owing to the increasing demand for wireline services across the globe. This segment is primarily driven by high number of maturing fields in onshore regions. Moreover, the ease of mobility is high in onshore regions which allows for multiple usages of wireline services, and is expected to create new revenue pockets for the wireline services market during the forecast period.

Cased-Hole expected to be the largest segment in the wireline services

With regard to the hole type segment, cased-hole is expected to be the largest market in 2016. When a portion of a well has a metal casing placed and cemented to protect from pressures, fluids etc., it is called as cased-hole and these cased-hole services increases wellbore stability. The cased-hole applications further includes electricline and slickline. The electricline is estimated to be the largest sub-segment within the cased-hole wireline services due to advantages such as real time data collection, versatility, and accuracy.

The wireline services market is highly fragmented, and comprises numerous regional as well as international players. Leading market players include Schlumberger Ltd. (U.S.), Halliburton Company (U.S.), Baker Hughes Inc. (U.S.), Weatherford International PLC (Switzerland), Superior Energy Services Inc. (U.S.) and Pioneer Energy Services Corp. (U.S.). Other companies operating in the market include C&J Energy Services Ltd. (U.S.), Expro International Group Holdings Ltd. (U.K.), Archer Ltd (U.K.), National Oilwell Varco Inc. (U.S.), Basic Energy Services Inc. (U.S.), and Oilserv (UAE).

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Edwin Sergio

Energy | Oil and Gas Consultant


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