How Are E&P Investments Boosting Well Cementing Services Demand?

Well cementing refers to the service that helps in preventing the movement of fluid from the reservoir to the wellbore. Cementing of wells also supports and protects the well casing. Oilfield service companies offer well cementing services for completing new wells and sealing lost circulation areas or zones where there is an absence of fluid movement or less fluid flow within the well. These companies offer remedial, primary, and other services. 

As these services are primarily required in the well completion process, the surging number of well completions, primarily on account of the rising exploration and production (E&P) activities in conventional and unconventional gas and oil reserves, will drive the global well cementing market at a CAGR of 4.7% during the forecast period. The market value stood at $7,577.6 million in 2018, and it is projected to reach $10,065.4 million by 2024. Moreover, the soaring E&P investments in Russia, China, the U.S., and Brazil will augment the demand for well cementing services in the foreseeable future.

According to the market research company, P&S Intelligence, North America accounted for the largest share in the well cementing market in 2018. This can be credited to the huge investments made in the oil and gas sector, especially in well drilling for extracting shale gas in Canada and the U.S. Moreover, the strong influence of these countries over the oil and gas reserves of the Arctic region has supported the market growth in the region. As both nations have direct access to the Arctic Ocean, they are conducting extensive oil and gas E&P activities.  

Thus, the rising E&P activities and increasing exploration of oil and gas reserves, especially in the Arctic region will amplify the need for well cementing services all over the world in the coming years.

Source: www.psmarketresearch.com