Production Testing Market Size (2024 - 2029)

The production testing market is influenced by the number of production wells and is experiencing growth driven by an increasing demand for testing services, particularly in the United States, due to declining production from mature fields. While the onshore segment has historically dominated the market, recent high crude oil prices have spurred activity in the offshore sector, contributing to market expansion. Significant oil and gas discoveries in regions like Guyana, Egypt, and Senegal have also created opportunities for market growth as operators invest in these areas. Additionally, the need for monitoring production rates in mature fields in the Middle East and Russia is prompting oil and gas operators to contract production testing services, further driving the market.

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Market Size of Production Testing Industry

Market Summary - Production Testing Market
Study Period 2020 - 2029
Base Year For Estimation 2023
CAGR 2.54 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration High

Major Players

Production Testing Market Major Players

*Disclaimer: Major Players sorted in no particular order

Production Testing Market Analysis

The production testing market is dependent on the number of production wells, and is expected to grow at a CAGR of more than 2.54% during 2020-2025. Major factors driving the market include increasing number of production well, especially in the United States and declining production from mature fields are resulting in increasing demand for tests such as drill stem test, frac water flowback monitoring. On the other hand, the lack of new projects in the offshore sector between 2014 and 2017 is expected to restrain the market growth.

  • Majority of the growth in the production testing market in the recent past has been dominated by onshore segment due to lack of the projects in the offshore. However, with the current high crude oil price the offshore segment has witnessed an uptake in activity with a large number of projects receiving FIDs in 2018 and 2019. A number of these projects will be developed in phases and contribute to driving the market in the latter part of the forecast period.
  • The oil & gas industry in the past few years has witnessed major oil & gas discoveries in countries such as Guyana, Egypt, and Senegal. These discoveries have attracted a number of oil & gas operators to invest to develop these new discoveries and create an opportunity for the production testing service providers to expand their global presence.
  • Middle East countries such as Saudi Arabia, UAE, and Oman and Russia has a number of mature fields and production from these fields are declining. Monitoring oil, gas and water production rates is very crucial for reservoir management and production optimization in mature fields. Maturing fields in the Middle East and Russia have encouraged the oil & gas operators such as Saudi Aramco, and Rosneft to offer production testing contracts and drive the market.

Production Testing Industry Segmentation

The production testing market report include:

Geography
North America
Europe
Asia-Pacific
South America
Middle-East and Africa
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Production Testing Market Size Summary

The production testing market is poised for growth, driven by an increasing number of production wells, particularly in the United States, and the need to address declining outputs from mature fields. This demand is further fueled by the necessity for tests such as drill stem tests and frac water flowback monitoring. While the offshore sector experienced a slowdown in new projects between 2014 and 2017, the rise in crude oil prices has revitalized offshore activities, leading to a surge in projects receiving Final Investment Decisions (FIDs). This shift is expected to bolster the market in the latter part of the forecast period. The oil and gas industry has also seen significant discoveries in regions like Guyana, Egypt, and Senegal, attracting investments and providing opportunities for production testing service providers to expand their global footprint.

The market is predominantly led by the United States, where the high number of wells drilled annually and the decline in production from mature wells necessitate production testing for effective reservoir management and optimization. The Permian Basin, a key area for crude oil production, is witnessing a decline in output from older wells, prompting a shift towards deeper regions for new discoveries. This trend is mirrored globally, with more than half of recent oil and gas discoveries occurring in deepwater and ultra-deepwater regions. Brazil stands out as a significant market for deepwater projects, driven by regulatory improvements and financial incentives. The consolidation of the production testing market is evident with major players like Schlumberger, Halliburton, Expro, and Tetra Tech leading the industry.

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Production Testing Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD billion, till 2025

    3. 1.3 Global Active Rig Count, 2016-2018

    4. 1.4 Number of Wells Completed, 2010-2018

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitute Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Geography

      1. 2.1.1 North America

      2. 2.1.2 Europe

      3. 2.1.3 Asia-Pacific

      4. 2.1.4 South America

      5. 2.1.5 Middle-East and Africa

Production Testing Market Size FAQs

The Production Testing Market is projected to register a CAGR of greater than 2.54% during the forecast period (2024-2029)

Halliburton Company, Schlumberger Limited, Expro Group and Baker Hughes Company are the major companies operating in the Production Testing Market.

Production Testing Report Snapshots

Production Testing Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)