Well Testing Services Market

Well Testing Services Market Size (2023-2028):

The Global Well Testing Services Market was worth US$ 6.74 billion in 2022, and it is estimated to reach a valuation of US$ 9.67 billion by the end of 2028, expanding at an annual growth rate of (CAGR) 6.46% between 2023 and 2028.

In the oil and gas industry, a well test is the implementation of a set of planned data acquisition activities. The data that gets acquired is analyzed in order to get broaden knowledge and enhance the understanding of the hydrocarbon properties and also about the characteristics of the underground reservoir in which hydrocarbons are trapped. Hydrodynamic testing of the reservoir sections containing H2S such as isochoric, multi-cycle tests, etc. In this, there is a collection of fluid samples under the live well and separation of the formation during drill stem tests for temporary production of oil and gas. Well, testing includes various types of services Downhole Well Testing, Surface Well Testing, Reservoir Sampling, Real Time Well Testing, and Hydraulic Fracturing Method Testing through which get to know about the status of the well. The major players who are delivering well-testing services include Weatherford, Baker Hughes, and Schlumberger among others. These companies are providing reliable data through industry-leading expertise, equipment, and software. With the help of a well-testing company can evaluate well and field performance, diagnose reservoir characteristics, integrate test results with other studies, plan for future development, and perform the overall management of the reservoir.

The increasing demand for oil & gas and the recovery of US shale gas production is fueling the growth of the market during the projected period between 2023 and 2028

Market Drivers:

The driving forces of the Well Testing Services Market are the rising global oil & gas demand and the recovery in US Shale production. US shale production is expected to reach its early 2020 production level by the end of 2022 and is expected to show steady growth between 2022 and 2027. Maintaining Shale production requires more wells in a short time and more drilled wells require well testing services. Saudi Arabia’s focus on unconventional gas production and Qatar's LNG expansion will drive the testing market in the Middle East region. China and India are the major oil-importing countries and both have planned to increase domestic production through more exploration and optimization of existing resources. New frontier markets like Guyana and Suriname are also expected to provide a new lifeline to the South American well-testing service market.

Global fuel consumption is increasing and the rise in the demand for fossil fuels is encouraging companies to increase their fuel production. Due to fewer easy-to-access oil fields, companies have started moving towards new areas that include operations in more remote and deeper offshore areas. As a result, the demand for well-testing services is increasing in deep water E&P activities, therefore rise in offshore E&P activities is fueling the growth of the Well Testing Market over the forecast period.

Market Restraints:

Sanctions against Russia & Iran’s Oil & Gas industry and shift towards renewable industry

Market Recent Developments:

• In April 2022, Halliburton Company introduced “Strata Star” which is a deep azimuthal resistivity service that offers multilayer visualization so as to maximize well contact with the reservoir and improve real-time reserves evaluation.
• In May 2021, Halliburton Energy Services has announced that the initial trial of its revolutionary new technology “Anaconda Advanced Well Construction System” has been successfully completed. Due to its breakthrough advances in composites, materials, telemetry, and control sciences, this system would have a major impact on the exploration, development, and production of oil and gas particularly offshore.
• In September 2020, Weatherford and Safe Influx services (an Aberdeen-based startup) agreed to combine and com-market their respective managed-pressure drilling and automated well control technologies. This complementary system allows greater well integrity during drilling and well construction operations.

WELL TESTING SERVICES MARKET REPORT COVERAGE:

Market Segmentation:

Well Testing Services Market - By Services:

• Downhole Well Testing
• Surface Well Testing
• Reservoir Sampling
• Real-Time Well Testing
• Hydraulic Fracturing Method Testing

In the present windfall situations and with a global shift towards renewable and biobased fuels & chemicals; Oil & gas producers are expected to focus more on enhancing the productivity of existing fields rather than investing in new explorations. Between 2022 and 2027, Real-Time Well testing and Hydraulic Fracturing Method Testing services are expected to grow faster than other testing services.

Well Testing Services Market - By Application:

• Onshore
• Offshore

On the basis of Application, the global well testing service is segmented into Onshore and offshore. Since the start of the Oil & Gas era, onshore wells are the dominant application area and are still expected to be dominant in the future.

Well Testing Services Market - By Well Type:

• Horizontal Wells
• Vertical Wells

On the basis of well type, the global well testing market is segmented into Horizontal Wells and Vertical Wells. In the last decade, the Horizontal wells count had increased at a rapid pace due to advancements in directional drilling techniques. But, Vertical wells are still commonly used for conventional reservoirs. The US shale industry & Canada’s SAGD-assisted heavy oil industry is the largest market for horizontal well testing services.

Well Testing Services Market - By Stages:

• Exploration
• Appraisal
• Development
• Production

On the basis of stages, the global well-testing market is segmented into Exploration, Appraisal, Development, and Production. Development stage well testing services are expected to grow faster than other stages between 2022 and 2027 due to low cost & shorter time frame which is beneficial for oil & gas producers.

Market Regional Analysis:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

The Global Well Testing Services Market has been categorized into four regions: North America, the Middle East, Europe, Asia-Pacific, and RoW (The rest of the World). The US is the largest market for well testing and will remain the largest market between 2022 and 2027. The US shale industry is the largest revenue pocket for service providers. Due to the oil price shock of late 2019 and COVID-19-led demand shock of 2020, the US shale industry observed various debt defaults, bankruptcies, and production assets consolidations between 2020 and 2021. But in early 2022, the Shale production of major players has reached to pre-COVID level and is expected to make steady growth in the long term due to high oil & gas prices and global supply chain situations.

The Middle East is the second largest well-testing market with Saudi Arabia at the top and expected to maintain the market share due to planned high investment in the exploration of unconventional gas resources. Russia is the third largest well-testing market and its market share tends to decline due to US & European sanctions.

North Sea region in Europe, Offshore Angola & Nigeria in Africa, and Offshore Western Australia are other existing big revenue pockets for the well-testing market.

Market Key Players:

Some of the leading companies operating in the Global Well Testing Services Market are 

1. Baker Hughes (US)
2. AGR Group ASA (Norway)
3. FMC Technologies Inc. (U.S.)
4. Schlumberger Ltd. (U.S.)
5. Halliburton Company (U.S.)
6. Tetra Technologies Inc. (U.S.)
7. Weatherford International Ltd. (Ireland)
8. Expro International Group Ltd (U.K.)
9. Greene's Energy Group (U.S.)
10. Helix Energy Solutions Group Inc. (U.S.)