Global oilfield services industry to top $200 billion by 2017
HOUSTON -- Booming Exploration and Production expenditure will see the global oil field services industry climb significantly in value in the near future, expects business intelligence company GBI Research.
According to the firm’s latest report, the global oil field service industry (typically defined as any activity or service related to the finding, evaluation, development, production and abandonment of oil and gas resources) is forecast to jump in value by a massive 72% in just five years, from $152 billion in 2012 to $213 billion in 2017.
Despite the global economic turndown, demand for oil and gas has continued to grow, due primarily to the emerging economies of Asia and South America. Additionally, the increase in crude oil and natural gas prices has warranted high E&P costs for areas where access is more difficult, such as offshore deep and ultra-deep locations.
Innovative hydrocarbon recovery techniques such as Enhanced Oil Recovery (EOR) are also driving oil companies around the world to return to depleted or mature reservoirs – further contributing to total E&P expenditure.
Of the three segments that make up the oilfield services industry – exploration and evaluation, drilling, and completion and production – it is the latter that garners the most substantial income. GBI Research forecasts the completion and production services portion of the industry to create $148 billion in revenue during 2017, climbing from revenue of $105 billion in 2012.