North America dominated the market of well completion equipment and services in 2016. Shale gas revolution and the presence of major players has further driven the well completion equipment and services market in this region. According to Baker Hughes Company, in 2017, the rig count in the U.S. was 940, which was up 431 from 509 counted in 2016. This has further resulted in increasing installation of well completion equipment and thereby, has contributed to the overall growth of this market in North America.
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Asia Pacific is projected to have a significant growth in the well completion equipment and services market, owing to increasing energy demand in the economies such as China, India, and Indonesia. According to India Brand Equity Foundation (IBEF), India’s demand for energy is anticipated to double from 700.50 MTOE (Million Tons of Oil Equivalent) in 2015 to 1,516 MTOE in 2035. Major players are focused on enhancing production capacities to meet increasing demand of this region. For instance, in 2015, Pertamina Corporation, Indonesia’s national oil company, purchased 30% of Murphy Oil’s assets in Malaysia, aiming to enhance Indonesia’s hydrocarbon production from overseas assets.
Middle East is the prominent market in well completion equipment and services. Many oil and gas companies are seeking investments in this region in order to increase their profit margin. Moreover, in 2015, Afek Oil and Gas Company limited, subsidiary of Genie Energy Ltd. (U.S.), discovered oil reserves in the Golan Heights, a Syrian territory, which is occupied by Israel and is 10 times larger than an average oilfield.
Africa is accounted to be one of the fastest growing markets in the well completion equipment and services market, owing to development in offshore oil and gas exploration and production activity. In 2010, an estimated 85 trillion cubic feet of gas was discovered in the Rovuma basin in Mozambique. Significant discoveries in Kenya, Tanzania, and South Africa have boosted the growth of oil and gas industry in this region, hence, fueling the market growth of well completion equipment and services. The US Geological Survey estimates that the coastal area of Tanzania and Mozambique could retain 14.5 billion barrels of oil and 250 Tcf (trillion cubic feet) of gas.
Well completion is the process of making oil and gas well capable of production after drilling is accomplished to signified depth. It comprises entire completion processes, which include running the production tubing, setting the downhole tools, and numerous other operations, which are carried out for making the well ready for production. Furthermore, the process of stimulation to improve the productivity of a well is also involved in well completion operation.
Increasing exploration and production activities across the globe backed by increasing number of rigs is contributing to growth of the well completion equipment and services market. For instance, Oil and Natural Gas Corporation (ONGC) aims to increase crude oil production from 22.6 MT (million tons) in 2017 to 26.42 MT in 2022. However, fluctuating oil price is a major factor restraining growth of the well completion equipment and services market worldwide.