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Middle East Oilfields and Drilling Services
Market Report - 2020
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• Oil and Gas industry is highly volatile and
  cyclical market. The growth of oilfield services
  industry was directly proportional to the growth
  in oil and gas industry. The global oilfield
  services industry was highly competitive with a
  lions share occupied by the Big Fours, namely,
  Schlumberger, Halliburton, Baker Hughes and
  Weatherford. These companies are typically
  non-producers of oil and gas themselves however,
  they provide services, equipments and personnel
  to oil and gas exploration and production
  companies.

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• The downfall in the commodity prices had a ripple
  effect on global oil field services and drilling
  services market as well as across the whole oil
  and gas value chain. However, Middle East markets
  were largely unchanged and came out to be the
  only vivid region globally where the EP
  companies have augmented their capital spending
  in exploration, production and drilling
  activities.
• Middle Eastern countries across the region sought
  to adopt enhanced oil recovery techniques to
  maximize the value.

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• With the increased energy demand and increased
  expenditure in EP, the rental market for
  oilfields and drilling equipments in Middle East
  witnessed a faster growth. The oilfield equipment
  rental market of Middle East valued to USD
  million during 2014. Oilfields require
  specialized equipments and machinery to perform
  EP and drilling activities. The increased
  capital spending on oilfields and drilling
  services in Middle East largely goes to the fact
  that the Middle Eastern oil exporting countries
  did not cut their production levels during the
  time when the commodity prices collapsed so as to
  make the drilling operations unprofitable in the
  US.

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• Significant capital expansions led by the major
  exploration and production companies of Middle
  East has augmented the demand for oilfield and
  drilling services. Middle East had more than
  share in the global spending by major EP giants.
  The global capital expenditure in exploration and
  production has crossed USD billion in 2014 as
  compared to USD billion in 2013. The
  expenditure in Middle East is expected to
  increase with more than annually in the years
  to come as the increase EP activities in the
  offshore areas, new discoveries and orders of new
  offshore rigs shall continue to drive the market.

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• EP capital spending by Middle East in 2014 was
  recorded at USD million as compared to USD
  million during 2013. More than of the market
  share has been occupied by the international
  oilfield services and drilling companies in
  Middle East. The indigenous players in the region
  do not have the expertise to provide
  technologically reliable and advanced solutions
  to the EP companies.

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• The OFS companies provide a broad range of
  products and services ranging from seismic
  surveys to deep and ultra deep water drilling.
  Broadly, the OFS services can be divided into
  five stages which are reservoir/seismic surveys,
  exploration production drilling, engineering,
  fabrication and installations, operations and
  finally the decommissioning of the well.
• The oilfield services market in Middle East was
  exposed to increased exploration and production
  activities in the past five years 2009-2014.

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• The fundamental outlook of the oilfield services
  during the last five years surged with the
  increased capital spending in the market and a
  robust demand for energy. The penetration of new
  simulation technologies and increased operational
  efficiency in offshore exploration in Middle East
  led the market to eventuate at USD million in
  2014 as compared to USD million during 2013.

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• Despite of the short term uncertainty of crude
  oil prices, the EP spending did not reflect a
  significant impact of the OFS market of the
  Middle East. The geopolitical tensions and civil
  unrest in few regions of Middle East brunt the
  OFS market largely in the regions such as Iran
  and Egypt.
• Saudi Arabia has been the largest country in
  terms of oilfield services that has commanded
  revenues share worth . Rising domestic oil
  consumption in the country has pushed Saudi
  Arabia state controlled economy and has
  recognized it as the leader across Middle East.

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• The region remained to be the most impressive
  area for the international oilfield services
  companies for greater returns since the prior
  five years. Over the years, the rise in number of
  completed wells in the country has discerned a
  decline in share from 29.1 during 2009. The
  region remained to be the most impressive area
  for the international oilfield services companies
  for greater returns since the prior five years.

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• In the year 2014, Saudi Arabia has been the
  largest country in terms of oilfield services
  that has commanded revenues share worth 24.
  Rising domestic oil consumption in the country
  has pushed Saudi Arabia state controlled economy
  and has recognized it as the leader across Middle
  East.
• Oman saw an upward trend in the market share,
  increasing by in 2014 from 2012. In between
  2011 and 2012, Oman made huge investments towards
  Enhanced Oil Recovery programs (EOR) which led to
  increased OFS activities in Oman

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• Kuwait, Egypt and UAE have countered revenues
  share of worth , and respectively during
  2014. These countries in a consolidated manner
  have contributed meager share relative to other
  Middle East countries, owing to lower number of
  oil discoveries. However, the growth prospects in
  these countries are quite favourable and hence
  several oilfield service providers have enhanced
  their expansion in these countries. More than
  of the oil and gas exploration and production
  activities in Middle East are concentrated
  onshore.

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• As the mature fields in Middle East have
  increased, the upstream companies have shifted
  their focus towards offshore areas which has
  fueled the demand for OFS services. In 2014, the
  share of onshore oil fields services in the
  overall market was positioned at which
  accounted to approximately USD billion as
  compared to USD billion in 2013. The Middle
  East ventured to find new acreages and invested
  heavily in offshore market. The oil producers
  strived for increased production in the waters
  using advanced technologies with the aim to surge
  down the operational costs which created
  opportunities for OFS.

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• The market was led by Schlumberger which occupied
  a colossal share of from the total OFS market
  of Middle East followed by Halliburton with a
  market share of . Baker Hughes and Weatherford
  stood at a share of and respectively in
  terms of revenues. The Middle East revenue of
  Schlumberger valued to approximately USD million
  in 2014. Halliburton has been the leader in
  pressure pumping market across Middle East
  market. For Halliburton, the pressure pumping
  segment accounted for USD million which led to
  a market share of in Middle East.

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• The Middle East revenue of Halliburton from
  wireline services was valued at USD million in
  2014 which have been translated into revenues
  share of worth under wireline services. Baker
  Hughes has been the largest player in completion
  services and equipment market which has commanded
  share worth during 2014. The presence of huge
  reserves in the region out of which many are yet
  to be explored and exploited presents an
  extensive market to the OFS companies in Middle
  East as compared to any other geographical
  locations across the globe.

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• The OFS industry in Middle East is likely to
  witness a CAGR of from 2015 to 2019 and shall
  value to approximately USD million by the end of
  2019. The key market edges for an OFS company are
  projected to be strong demand, higher EP
  expenditure by the oil and gas companies, soaring
  prices and financial durability of the customer
  base. All the above conditions have positive
  outlook in Middle East in the years to come due
  to which market share of OFS firms is bound to
  increase. The OFS industry was witnessed as a
  competitive market in the past five years
  2009-2014 and is dominated by the Big Four
  oilfields service providers.

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• With the merger of Halliburton and Baker Hughes
  in 2015, the competition among the oilfield
  service providers is likely to enlarge. The
  increase in demand for energy drives the need for
  exploration activities and investments. This
  increases the need for offshore exploration and
  production activities, which further leads to the
  demand of offshore drilling infrastructure and
  associated services. The drilling services
  industry is primarily a contractual industry
  which provides services to the exploration and
  production companies.

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• The drilling services industry of Middle East
  demonstrated strong fundamentals, a well-built
  growth and increased activity as compared to any
  other region across the globe during the past few
  years 2009-2014. The demand for drilling services
  is budding up with growing drilling activities in
  onshore as well as in offshore oil fields. Some
  of the drilling services like directional
  drilling, land drilling, offshore drilling, well
  service and work over are becoming essence, with
  the amplified development of oil gas
  exploration and production activities

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• Read Detail Report here https//www.kenresear
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  ld-and-drilling-services-market-report/3260-103.ht
  ml
• ContactKen ResearchAnkur Gupta, Head Marketing
  Communicationsankur_at_kenresear.com
• Website www.kenresearch.com

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