Market Trends of North America Wireline Services Industry
This section covers the major market trends shaping the North America Wireline Services Market according to our research experts:
Onshore Segment to Dominate the Market
- According to Baker Hughes Rig Count, as of November 2022, the United States had nearly 780 land rigs being deployed. This demonstrates the disparity between new drilling activity in the onshore and offshore segments.
- The United States is one of the largest producers of hydrocarbons globally, and most of its hydrocarbon production comes from shale oil and gas wells. The country has enormous shale reserves distributed across the country, including Barnett, Haynesville, Bakken, and Anadarko-Woodford shale plays. The Permian Shale play in West Texas is one of the largest shale plays globally, with the lowest shale development costs.
- Canada is another major producer of hydrocarbons. Most of its production comes from oil sands and heavy oils in the country's interior, primarily from the province of Alberta and other central and western provinces.
- Additionally, offshore activity has been low over the last few years due to the Covid-19 pandemic. Due to low oil prices, most offshore oil project developments were considered economically unviable. Additionally, Onshore production companies can turn on and off rigs more easily than offshore rigs to respond to market conditions.
- Therefore, due to the above factors, the onshore segment is expected to dominate the region's upstream market in terms of production, investment, and E&P activity, which is expected to be translated into the wireline services market, driving the onshore segment
of the North America Wireline Services Market during the forecast period.
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The United States to Dominate the Market
- The United States is expected to maintain its dominance in the region in the forecast period, owing to the increased drilling and completion activities in shale plays over the recent past and the recovery of oil prices in the oil and gas market.
- Another driving force that is expected to promulgate the demand for wireline services is the advancements in shale technology. According to the United States Geological Survey (USGS), as of 2021, over 46 billion barrels of oil, 280 trillion cubic feet of gas, and 20 billion barrels of natural gas liquids are trapped in the low-permeability shale formations of the United States.
- Unconventional resources led to a revolution in the US energy industry, bringing with it growing energy independence, an enormous economic windfall, and a stronger geopolitical position through the burgeoning exports in both oil and gas (LNG).
- According to BP Statistical Review of World Energy 2022, as of 2021, average daily crude oil production in the United States stood at 16,585 thousand barrels/day, Additionally, since 2017, the share of the United states' crude oil production in North America's total oil production has increased from approximately 60.28% to nearly 63.23%, demonstrating the rising dominance of the United States as a crude oil producer in North America.
- According to the latest drilling productivity report, as of November 2022, there were nearly 4443 drilled but uncompleted wells, up by nearly 0.4% from 4421 drilled but uncompleted wells in September 2022. As most of these wells will require wireline completion, This provides a significant factor driving the market in the country during the forecast period.
- Therefore, the factors above are expected to drive the market in the forecast period, similar to the trend witnessed in recent years.
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