WIRELINE SERVICES MARKET ANALYSIS

Wireline services, also known as electrical cabling technology, is used in the oil and gas industry for reservoir evaluation, pipe recovery activities, and intervention processes. These services involve the usage of multi-strand cables to carry equipment into wells for purposes such as data acquisition and enhancing performance of wells by providing real-time, quantified, and accurate data. Increasing on-going drilling and completion activities is one of the major drivers for growth of the global wireline services market.

The global wireline services market was valued at US$ 22.5 Billion in 2021 in terms of revenue, exhibiting a CAGR of 6.7% during the forecast period (2022 to 2030).

Drivers

The global growing demand for energy is expected to boost the demand for wireline services. For instance, in 2021, according to world energy organization, global demand for energy is grew by close to 4% in 2020 and 4% in 2021. This in turn, is increasing the demand for deep well exploration to extract more oil from each well. Therefore, is expected to drive the demand for wireline services market growth over the forecast period.

Among region, North America held a dominant position in the market in 2021, and is projected to retain its dominance throughout the forecast period. The market in North America held 34.56% of market share of global wireline services market and is expected to keep its dominance over the forecast period. The U.S. and Canada are major countries contributing to the growth of North America wireline services market, owing to increasing number of well completions in North America. According to the Baker Hughe’s worldwide rig count, from the total of 1918 oil rigs worldwide, North America accounts for around 985 rigs. The region has large number of advanced oil rigs with various technologies integrated for effective monitoring and maintenance, which is driving the demand for wireline services in the region. Furthermore, presence of leading market players in North America is another factor fueling growth of the wireline services market.

Figure 1. Global Wireline Services Market Value Share (%), By Region, 2021

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Market Restraints

Lack of universal directives pertaining to applications of wireline services is expected to restrain market growth during the forecast period. Every country has different directives pertaining to use and applications of wireline services. Key players find it difficult to cope with such country wise regulations, which in turn is discouraging investment in the wireline services industry, thereby restraining the market growth. 

Market Trends

Growing production activities in oil and gas industry are boosting the demand for wireline services. The growing demand for cabling in the oil and gas fracking companies is creating opportunities for wireline services. The wireline services help the companies in keeping the oil and gas production operations economical in terms of time and cost, therefore increasing the opportunities for the global wireline services market.

Figure 2. Global Wireline Services Market Value Share (%), By Well Type, 2021

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Among well type, the cased hole segment held a dominant position in the market in 2021 and is projected to retain its dominance throughout the forecast period. Cased hole services comprise executing logging measurements with the help of well chasing or metal piping inserted at the time of well completion activities. Cased hole wireline services are crucial for casing, cement evaluation, and saturation logging, which enables operators to closely examine the well capacity and optimize production. Also, it allows operators to take immediate corrective actions on any issues that arise. Cased hole wireline services thus, offer highly accurate well assessment along with maximum asset recovery, due to which the growth of this segment is rapidly increasing.  

Global Wireline Services Market - Impact of Coronavirus (COVID-19) Pandemic

Market was negatively impacted by the effect of COVID-19 pandemic. Major manufactures such as Allied-Horizontal Wireline Services LLC., Archer Limited, Baker Hughes, C&J Energy Services Inc., China Oilfield Services Limited, Emerson operating in wireline services market have their manufacturing & supply chain bases across the globe. These players have halted the production of wireline services in first and second wave of COVID 19 due to the lowered demand, lockdown measures, supply chain bottlenecks, and to protect the safety of their employees.

Recent Developments

• On May 27, 2021, Archer Oiltools made frame agreement with Wintershall Noordzee B.V. for purchase and assumption (P&A) campaign. Archer Oiltools has been awarded the P&A campaign for Wintershall Noordzee B.V. in 2021/22.
• On May 9, 2022 – Nexus Controls, a Baker Hughes subsidiary, expanded its Nexus OnCore Control System portfolio with the launch of the Nexus OnCore Compact Control System. This new system provides the digital toolset and advanced diagnostic capabilities of a distributed control system (DCS) and wireline services, which are installed into tight places. This nee system also provides increased efficiency, greater asset understanding and operational optimization in controls traditionally used in wireline services.
• On May 3, 2022 – Baker Hughes, an energy technology company, launched a new subsea wellhead & Wireline technology, the MS-2 Annulus Seal, to save substantial operational rig costs by helping lower overall wellhead installation costs due to reduced rig trips. The new integrated sealing solution, globally launched and exhibited at the 2022 Offshore Technology Conference in Houston and has already been adopted by multiple customers in North and South America.

Competitive Section

Major players operating in the global wireline services market include Allied-Horizontal Wireline Services LLC., Archer Limited, Baker Hughes, C&J Energy Services Inc., China Oilfield Services Limited, Emerson, FMC Technologies Inc., GE Oil & Gas Corporation, Halliburton Company, National Oilwell Varco, Petrofac, Pioneer Energy Services Corporation, Schlumberger Limited, Siemens, Superior Energy Services Inc., Weatherford International, Weir Oil & Gas and Weltec.