Global Wireline Services Market - Insights
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 wireline services market. For instance, in 2018, Exxon Mobil Corporation announced its seventh oil discovery offshore at Guyana, drilling at the Pacora-1 exploration well. Moreover, in 2018, Africa Energy Corp. announced its intention to drill an exploration well in 2019, on Block 2B offshore the west coast of South Africa. Increasing drilling and completion activities is attributed to continuous increase in demand for energy around the globe. For instance, according to world energy organization, global demand for energy is projected to increase with a CAGR of 6.6% during the period of 2014–2020. This in turn, is increasing the demand for deep well exploration to extract more oil from each well. This in turn, is expected to increase the demand for wireline services, and is expected to drive growth of the market over the forecast period.
Cased holes segment is expected to be the fastest growing segment over the forecast period
Among well type, the cased hole segment held a dominant position in the market in 2016 and is projected to retain its dominance throughout the forecast period. The segment is estimated to generate revenue of US$ 15.7 billion in 2017, and is projected to reach US$ 25.8 billion by 2025. 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.
Figure. Global Wireline Services Market Share, by Region, 2017, US$ Billion.
Source: Coherent Market Insights
The global wireline services market generated revenue of US$ 19.9 billion in 2017, from US$ 19.7 billion in 2016. The market is expected to generate revenue of US$ 33.9 billion by 2025, exhibiting a CAGR of 6.8% over the forecast period (2017 – 2025).
North America held the dominant position in wireline services market in 2017.
North region held a dominant position in the market in 2017 and is projected to retain its dominance throughout the forecast period. The market in the region is estimated to generate revenue of US$ 9.3 billion in 2017 and is projected to reach US$ 15.8 billion by 2025, exhibiting a CAGR of 6.9% over the forecast period. The U.S. and Canada are major growth engines in the North America wireline services market. Increasing number of well completions is driving growth of the wireline services market in North America. As per 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, the demand for wireline services is thus increasing. Also, the market in the region is characterized by large of players, which is another factor driving growth of the wireline services market.
Major players operating in the global wireline services market include GE Oil & Gas Corporation, Superior Energy Services Inc., FMC Technologies Inc., Pioneer Energy Services Corporation, Schlumberger Limited, C&J Energy Services Inc., Allied-Horizontal Wireline Services LLC., Weatherford International, and Halliburton Company.
Wireline services, also known as electrical cabling technology, is used in the gas and oil well industry for reservoir evaluation, pipe recovery activities, and intervention processes. Technological advancement in wireline are providing growth opportunity for the market. Constant advancement in telemetry and digital electronics have improved the tool accuracy and reliability, which helps to extend the tool operation to higher-pressure and higher-temperature environments, improved downhole processing, and enabled new slimhole designs. For instance, reservoir monitoring is one of the area, which have experience the significant advances with the development of new wire line tools.
Increasing demand for crude oil is one of the major factors driving growth of the wireline services worldwide. According to Coherent Market Insights, in 2010, the daily consumption of crude oil was 88.7 million barrels and was projected to reach 96.6 million barrels by 2016. Increasing demand for crude oil is influencing oil production companies to drill new wells, so as to meet rising demand for oil. This in turn, is increasing drilling activities for new oil wells, thus boosting growth of the wireline services market. Moreover, volatile prices of oil and gas is a major factor restraining growth of the market. For instance, according to Organization of the Petroleum Exporting Countries (OPEC), average annual crude oil price was US$ 109.45/barrel in 2012 and is expected to be US$ 66.85/ barrel in 2018. The unexpected price fluctuations are reducing revenue regenerated by companies, in turn, hindering growth of the wireline services market.
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