Market Trends of Middle East and Africa Christmas Tree Industry
This section covers the major market trends shaping the MEA Christmas Tree Market according to our research experts:
Onshore Segment to Dominate the Market
- The onshore oil and gas sector accounts for around 70% of the region's oil production, led by various countries such as Saudi Arabia, the United Arab Emirates, and South Africa. The onshore sector has benefited more from the rise in crude oil prices compared to the offshore sector.
- As of 2021, the United Arab Emirates was the sixth-largest crude oil producer and the fourth-largest producer of petroleum liquids in the Organization of the Petroleum Exporting Countries (OPEC). The oil and gas sector is critical to the UAE economy, contributing significantly to the country's revenue.
- Also, in November 2021, the Abu Dhabi National Oil Company (ADNOC) announced investment plans worth up to almost USD 6 billion (AED 22 billion) to enable drilling growth as it boosts its crude oil production capacity to 5 million barrels per day (mmbpd) by 2030 and drives gas self-sufficiency for UAE. This will, in turn, result in a growth in the usage of Christmas trees across the country.
- Moreover, In January 2022, Nigerian National Petroleum Company Ltd secured a USD 5 billion corporate finance commitment from the African Export-Import Bank to fund major investments in the Nigerian upstream sector. This is likely to aid the market's growth during the forecast period.
- Owing to the above points and recent developments, the onshore segment is expected to dominate the market during the forecast period.
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Saudi Arabia is Expected to Dominate the Market
- Saudi Arabia is one of the major global oil producers, with 10.954 million barrels per day (mb/d) of crude oil production in 2021. It is the largest crude oil exporter globally, registering nearly 161.7 billion USD in 2021. As a significant crude oil exporter, the country had great control over the international upstream market. The country plays a crucial role in controlling crude oil prices due to its high surge capacity. This may be considered a good sign for the Christmas tree market.
- Also, the country has the world's fifth-largest estimated shale gas reserve. Thus, it has great potential to replicate North America's unconventional reserves development growth. This, in turn, could result in a growth in the use of Christmas trees in the region.
- Moreover, in March 2022, the state oil company Saudi Aramco announced that it would boost its capital expenditure to USD 40 to 50 billion, which further bolstered the country's exploration and production activities.
- Furthermore, in February 2022, Saudi Arabia announced the discovery of natural gas fields in five regions of the kingdom: Riyadh, Shehab, Shorfa, Umm Khansir, and Samna. These gas discoveries may create a market for Christmas trees within the region.
- Therefore, owing to the above points, Saudi Arabia is expected to dominate the Middle East and Africa Christmas tree market during the forecast period.
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