Global Coiled Tubing Services Market - Growth, Trends, and Forecast (2022 - 2030)
The oil & gas exploration and production (E&P) activities consist of complicated processes, and require sophisticated technology and equipment. Coiled tubing services are required in drilling, completion, and production activities. The oil & gas industry is a highly volatile and cyclical market. The fall in commodity prices had a ripple effect on the oil & gas value chain. Over several decades the oil & gas industry has looked to active drilling rig count creating demand for oilfield services globally. Coiled tubing (CT) units have been used in the development of oil & gas resources since 1960s and have transformed into being a universal operation equipment, thus, easing the hydrocarbon production process. Well intervention is the primary application of coiled tubing, but completion-related services are driving the market.
Increase in Horizontal Drilling is driving the demand of Coiled Tubing
The collapse in oil prices in 2014 severely undercut company revenues and forced sharp cutbacks in spending. With commodities staging a recovery following a multi-year price rout, activity in the oil & gas sector has begun to strengthen. With oil & gas prices recovering, the oil & gas operator companies have increased investment for the development of the oil & gas projects, which were earlier delayed or stalled. The coiled tubing service providers are expected to benefit from the same, with increased activities on recovery. Despite the low oil price scenarios starting mid-2014, the quest for unconventional reserve production in the United States has resulted in the drilling of more wells than that are actually completed. The US shale producers drilled at a record rate in the past 18 months, increasing the rate from 491 wells, in May 2016 to 1246 wells, in January 2018. However, a record number of wells were left unfinished in the country, resulting in the abrupt increase of the drilled but uncompleted (DUC) well inventory in the country.
The number of drilled but uncompleted (DUC) oil wells reached a record 7609 wells, in January 2018. The slowdown in oil prices that began in late 2014 resulted in many E&P companies delaying the completion or fracturing of drilled wells, which represents approximately 36% of the total cost of a well. The global coiled tubing services market is expected to grow significantly during the forecast period, on the account of increasing focus on developing unconventional hydrocarbons, and increasing investments in deepwater and ultra-deepwater projects.
North America – the Largest Coiled Tubing Services Market
There has been a drastic decrease in the rig count globally since 2014, and this fall has reflected in the demand for oilfield services in the last few years. North America still has the most number of rigs globally, followed by the Middle East. Latin America takes the third spot. With pad‐based horizontal drilling in the United States becoming more in demand, rig count on land in North America has become less meaningful. Rig efficiency is rising in the United States, the number of wells a rig can drill each year is rising at a significant rate. The coiled tubing services market in North America is expected to be driven, in future, by new well drilling, an expanding producing well base, and the ever increasing lateral length in newly drilled US horizontal wells.
Moreover, United States is considered to be the ground for new technology, with a consequential large build-up of coiled tubing units, and related companies keeping the rates competitive, making coiled tubing workovers more viable. The coiled tubing services market in the United States is primarily driven by increased drilling activities, new offshore projects, and redevelopment of matured fields.
Key Developments in the Market
• August 2017: Baker Hughes, a GE company, announced the introduction of its CIRCA coiled tubing simulation software, which enables coiled tubing service providers to maximize equipment performance and improve operational efficiency in well interventions. The software allows coiled tubing providers and operators to build better job models for more predictable results.
The major players include - Baker Hughes Inc., Schlumberger Ltd, Halliburton, C&J Energy Services, among others.
Reasons to Purchase this Report
• Current and future coiled tubing services market outlook in the developed and emerging markets
• Analyzing various perspectives of the market with the help of Porter’s five forces analysis
• The segment that is expected to dominate the market
• Regions that are expected to witness fastest growth during the forecast period
• Identify the latest developments, market shares, and strategies employed by the major market players.
• 3 months analyst support, along with the Market Estimate sheet (in excel).
Customization of the Report
• This report can be customized to meet your requirements. Please connect with our representative, who will ensure you to get a report that suits your needs.
Increase in Horizontal Drilling is driving the demand of Coiled Tubing
The collapse in oil prices in 2014 severely undercut company revenues and forced sharp cutbacks in spending. With commodities staging a recovery following a multi-year price rout, activity in the oil & gas sector has begun to strengthen. With oil & gas prices recovering, the oil & gas operator companies have increased investment for the development of the oil & gas projects, which were earlier delayed or stalled. The coiled tubing service providers are expected to benefit from the same, with increased activities on recovery. Despite the low oil price scenarios starting mid-2014, the quest for unconventional reserve production in the United States has resulted in the drilling of more wells than that are actually completed. The US shale producers drilled at a record rate in the past 18 months, increasing the rate from 491 wells, in May 2016 to 1246 wells, in January 2018. However, a record number of wells were left unfinished in the country, resulting in the abrupt increase of the drilled but uncompleted (DUC) well inventory in the country.
The number of drilled but uncompleted (DUC) oil wells reached a record 7609 wells, in January 2018. The slowdown in oil prices that began in late 2014 resulted in many E&P companies delaying the completion or fracturing of drilled wells, which represents approximately 36% of the total cost of a well. The global coiled tubing services market is expected to grow significantly during the forecast period, on the account of increasing focus on developing unconventional hydrocarbons, and increasing investments in deepwater and ultra-deepwater projects.
North America – the Largest Coiled Tubing Services Market
There has been a drastic decrease in the rig count globally since 2014, and this fall has reflected in the demand for oilfield services in the last few years. North America still has the most number of rigs globally, followed by the Middle East. Latin America takes the third spot. With pad‐based horizontal drilling in the United States becoming more in demand, rig count on land in North America has become less meaningful. Rig efficiency is rising in the United States, the number of wells a rig can drill each year is rising at a significant rate. The coiled tubing services market in North America is expected to be driven, in future, by new well drilling, an expanding producing well base, and the ever increasing lateral length in newly drilled US horizontal wells.
Moreover, United States is considered to be the ground for new technology, with a consequential large build-up of coiled tubing units, and related companies keeping the rates competitive, making coiled tubing workovers more viable. The coiled tubing services market in the United States is primarily driven by increased drilling activities, new offshore projects, and redevelopment of matured fields.
Key Developments in the Market
• August 2017: Baker Hughes, a GE company, announced the introduction of its CIRCA coiled tubing simulation software, which enables coiled tubing service providers to maximize equipment performance and improve operational efficiency in well interventions. The software allows coiled tubing providers and operators to build better job models for more predictable results.
The major players include - Baker Hughes Inc., Schlumberger Ltd, Halliburton, C&J Energy Services, among others.
Reasons to Purchase this Report
• Current and future coiled tubing services market outlook in the developed and emerging markets
• Analyzing various perspectives of the market with the help of Porter’s five forces analysis
• The segment that is expected to dominate the market
• Regions that are expected to witness fastest growth during the forecast period
• Identify the latest developments, market shares, and strategies employed by the major market players.
• 3 months analyst support, along with the Market Estimate sheet (in excel).
Customization of the Report
• This report can be customized to meet your requirements. Please connect with our representative, who will ensure you to get a report that suits your needs.
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