The Global Oil and Gas Supporting Activities Market is expected to grow with a CAGR of 7.4% during the forecast period. The market was valued at USD 256.14 billion in 2022 and is expected to reach USD 402.33 billion by 2028.
Oil and gas-supporting activities are essential services and operations that aid the exploration, production, and transportation of oil and gas resources. These services involve a variety of functions, such as well drilling and completion, maintenance, and repair of wells. Moreover, these supporting activities also encompass geophysical surveying, mapping oil and gas fields, and pipeline and transportation services. In addition, oil and gas supporting activities involve equipment rental, oil and gas field exploration, and effective waste management services. All of these services play a crucial role in ensuring the safe and efficient functioning of the oil and gas industry.
Market Drivers:
Crude oil prices are a critical driver of the oil and gas-supporting activities market. Higher crude oil prices incentivize oil and gas companies to increase their exploration and production activities, leading to higher demand for supporting services.
Increasing demand for energy and the growing population are propelling the demand for the oil and gas-supporting activities market. Oil and gas are the primary energy sources for many industries, including transportation, manufacturing, and power generation. This growing demand for energy has resulted in a significant expansion of the oil and gas-supporting activities market.
The need for exploration and production of new oil and gas reserves has increased due to the depletion of existing reserves and the growing energy demand. This has led to a surge in exploration and production activities. In turn, it has increased the demand for supporting activities, driving the oil and gas-supporting activities market.
Market Restraints:
The oil and gas-supporting activities market is highly competitive, with the entry of new players and expansion of existing players leading to reduced profit margins. This creates challenges for companies in maintaining their market share and profitability.
The oil and gas industries are heavily regulated by environmental regulations, health and safety standards, and other regulations that impact a company's operational efficiency in supporting activities.
Market Opportunities:
The advancements within the oil and gas industry have led to a growing demand for drilling equipment, exploration tools, production software, and safety equipment. The demand for these services has increased due to the need for efficient and cost-effective solutions that can help streamline operations and improve safety measures. As a result, there is a significant opportunity for companies that offer these supporting services to capitalize on the growing demand and expand their market share.
As the world transitions towards cleaner and more sustainable energy sources, the oil and gas supporting activities market can explore opportunities to support the development and production of renewable energy sources such as wind, solar, and geothermal energy.
Companies in the oil and gas supporting activities market can expand their operations to access new markets and customers. Developing economies with growing energy demand in emerging countries like India, China, Korea, and others present significant opportunities for market expansion.
Key Developments of the Market:
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REPORT METRIC |
DETAILS |
|
Market Size Available |
2022 – 2028 |
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Base Year |
2022 |
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Forecast Period |
2023 - 2028 |
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CAGR |
7.4% |
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Segments Covered |
By Type, Drilling Type, Application, and Region. |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Schlumberger Limited, Halliburton Company, Baker Hughes Company, Weatherford International plc, National Oilwell Varco, Inc., TechnipFMC plc, Subsea 7 S.A., Saipem S.p.A., Wood PLC, Petrofac Limited, and Others. |
Market Segmentation:
The well-maintenance segment has been dominant in the oil and gas-supporting activities market in recent years. This is because the global oil and gas industry has been focusing on maximizing the recovery from existing reserves due to the declining reserves and increasing operational costs. This has led to increased demand for well maintenance services to ensure the efficient operation of existing wells and extend their lifespan.
The offshore drilling segment dominates the oil and gas supporting activities market during 2023-2028. because many offshore reserves are located in deepwater or ultra-deepwater environments, which require specialized equipment and services to access, making offshore drilling a more complex and high-cost operation than onshore drilling. However, technological advances, such as automated drilling systems and remote monitoring, are helping to make offshore drilling more efficient and cost-effective.
The crude petroleum segment dominates the oil and gas-supporting activities market due to its numerous applications. Crude oil is primarily used as a fuel source for transportation and electricity generation and a feedstock for the production of petrochemicals and other industrial products. The natural gas extraction segment has grown significantly recently, particularly due to the increasing demand for cleaner energy sources. Natural gas is primarily used as a fuel source for electricity generation and heating and cooling in residential and commercial buildings.
Market Reginal Analysis:
The Global Oil and Gas Supporting Activities Market Report includes the segmentation of regions:
North America dominates the oil and gas supporting activities market during 2023-2028. This is due to the region's significant reserves of unconventional oil and gas resources, such as shale gas and tight oil, which require extensive drilling and completion activities. Middle East and Africa is the second-largest dominant region during the forecast period. This is due to the region's significant reserves of conventional oil and gas resources, which require ongoing exploration and development to maintain production levels. Asia Pacific region has significant growth in this market. This is due to the significant offshore reserves in the region, particularly in countries such as China and India, which require extensive exploration and production activities.
The COVID-19 pandemic has significantly impacted the oil and gas-supporting activities market, resulting in a reduction in demand for oil and gas and subsequently decreased demand for supporting activities. This has caused delays, cost overruns, and reduced productivity due to disruptions in global supply chains. Additionally, financial challenges have been faced by many companies in the market, particularly smaller and mid-sized ones, which have led to reduced capital expenditures and deferred projects. However, the pandemic has also led to positive changes in the industry. It has accelerated the adoption of digital technologies such as remote work and virtual collaboration, resulting in increased efficiency, productivity, and cost reduction. The decrease in demand for traditional fossil fuels has opened up opportunities for diversification into renewable energy sources, such as wind, solar, and geothermal energy. Finally, collaboration among industry players has increased to improve supply chain resilience, reduce costs, and increase market share. Overall, the COVID-19 pandemic has brought challenges and opportunities to the oil and gas-supporting activities market, and companies must adapt to these changes to remain competitive and profitable.
Key Market Players:
Frequently Asked Questions
The oil and gas-supporting activities market is expected to grow with a CAGR of 7.4% during the forecast period.
The offshore drilling segment dominates the oil and gas supporting activities market shares.
The oil and gas-supporting activities market size is estimated to reach USD 402.33 billion by the end of 2028.
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