An uptick in drilling activity aimed at reaching shale and tight gas, tough environmental rules, and the lower price of crude oil are all factors that are helping to drive a potential boost for the well cementing services market on a global scale. A report by Grandview Research forecasts market growth reaching $11.08 billion in U.S. dollars by the year 2024. That growth could also be fueled by untapped reserves in Brazil, China and Russia. There have also been improvements in cementing technology services by industry service providers.
In the report, Grandview notes that in 2015, the market size for cementing services was at $7.44 billion. The report also states that for that same year, primary well cementing made up 78.6 percent of the market. 84.1 percent of the work was done for onshore wells last year. Onshore wells in the United States, Russia and Saudi Arabia, and an anticipated increase in the demand for oil and gas are expected to contribute to industry growth. For 2016 to 2024, Grandview anticipates that remedial well cementing will be a market driver and will see an increase of 6.9 percent. Russia, the Gulf of Mexico, North America and the North Sea are all expected to require an increase in remedial cementing. Grandview also reports that growth is also expected in deep sour gas wells.
Grandview predicts that offshore drilling will also become a major segment in the cementing industry and will see a compound annual growth rate of 7.1 percent between 2016 and 2024. The development of offshore wells in the North Sea, the Gulf of Mexico, the Persian Gulf and the South China Sea is expected to increase demand. There have also been recent discoveries of oil and gas deposits in Africa, a factor that is expected to contribute to the growth of well cementing services. Additionally, the well cementing services market will be driven by the energy sector in the Middle East. That region is expected to see average growth in the coming years as large oil and gas reserves there are developed, according to the report.
By Lincoln Brown for Oilprice.com
More Top Reads From Oilprice.com:
Lincoln Brown is the former News and Program Director for KVEL radio in Vernal, Utah. He hosted “The Lincoln Brown Show” and was penned a…