The liquid fuel consumption is expected to grow further to 101.51 mbpd by 2019. The strong demand for petroleum products especially in developing countries such as China, India, and Indonesia, and the growing use of natural gas for power generation and city gas distribution across the world are major factors driving the demand for fossil fuel. Hence the investment in oilfield services is growing. analysts have predicted that the oilfield services market will register a CAGR of almost 3% by 2023.
Increase in number of deep- water and ultra- deep- water drilling projects
The oil majors are gradually resuming their offshore operations especially in regions such as the Gulf of Mexico and Brazil as the crude oil prices are recovering. In such demanding market conditions extended reach wells can be commercially viable as they can increase production from oilfields. The rise in the number of projects is due to stabilization of the crude oil price which has increased the profit margin for drilling and production companies. This factor is expected to raise the demand for oilfield services during the forecast period.
Volatility in oil and gas prices
Volatile crude oil price is one of the biggest challenges for the global oilfield services market. as an uncertain price environment has a severe impact on new E&P investments and contract prices. Consequently, affecting the demand for oilfield services. The crude oil price cycle has not exhibited a consistent trend over the last decade.
For the detailed list of factors that will drive and challenge the growth of the oilfield services market during the 2019-2023, view our report.
The market appears to be fragmented and with the presence of several. This market research report will help clients identify new growth opportunities and design unique growth strategies by providing a comprehensive analysis of the market’s competitive landscape and offering information on the products offered by companies.
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