Ecuador Wireline Logging Services Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Ecuador Wireline Logging Services Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The oil and gas well logging services market in Ecuador is expected to grow at a CAGR of more than 2.62% during the forecast period. Factors such as increasing demand for oil and natural gas and increasing investments in the upstream oil and gas sectors across the country are expected to drive the number of exploration and production activities, thereby driving the wireline services market during the forecast period. However, the crude oil prices have been highly volatile between 2019 and the start of 2020, fluctuating between USD 60 per barrel and USD 25 per barrel by the start of 2020. This volatility of oil prices remains a growing concern for the upstream industry. Hence, this is expected to hinder the market during the forecast period.

Key Highlights

• The cased hole is expected to have significant growth during the forecast period due to its low cost in comparison with the open hole type.
• The shift of the projects from onshore to offshore, shallow waters to deep waters and ultra-deep waters is an opportunity for the wireline logging service providers to innovate and come up with products suitable and customized to the harsh climatic conditions of offshore basins.
• Volatility of crude price is expected to hinder the new investment in the country oil and gas market. Therefore, this is likely to hinder the growth of the wireline services market during the forecast period.

Ecuador Wireline Logging Services Market TrendsCased Hole is Expected to Witness Significant Growth

• The advantages of cased hole logging over open-hole logging are, this method saves valuable rig time, lowers the risk of tool loss during the operation and deployment of logging tools in cased hole logging are easier, especially in horizontal and high angle wells.
• But the cased hole logging provides, in comparison with open-hole logging, poorer data quality, less number of measurement choices, and the data attained by this method does not help with completion decisions.
• Therefore, cased hole logging provides data at cheaper costs at the expense of data quality and comprehensive data collection. Owing to this nature of the method, cased hole logging is generally used only during the development phase.
• The oil price crisis after mid-2014 has forced the operators worldwide to cut down on operational costs in order to reduce the oil & gas production breakeven price. Due to the current lower for longer oil price scenario, this trend is expected to continue.
• To reduce the operational costs, the operators are expected to prefer the cased hole logging over the open hole logging operations, in turn, driving the cased hole logging market.
• The government of Ecuador is encouraging new foreign investments to compete with Columbia and Brazil who have changed the contract their contract terms to attract foreign investments into oil & gas sector. The increase in foreign investments is expected to drive the upstream oil & gas activity, subsequently the wireline services market.

Volatility of Crude Oil Prices to Hinder the Growth of the Market

• The oil prices have been highly volatile over the recent period, owing to the supply-demand gap, geopolitics, and several other factors. Since January 2014, the highest average price of WTI crude oil was registered in June 2014, which was USD 105.11 per barrel and the lowest was around USD 24 per barrel in March 2020.
• The oil prices directly affect the upstream activities of the oil and gas sector. Higher prices result in an increase in the upstream activities as the margins of the operators involved in the operation rises. This situation leads to the increasing investments and operations in the upstream sector of the oil and gas market and affects the drilling and completion activities.
• In the same scenario, the lower prices reduce the interest of the operators, as the margins shrink. Hence, during the low oil prices, the operators tend to put the drilling and exploration projects on hold, in turn, lowering the demand for well logging services.
• Furthermore, during 2019, the oil prices were higher and were expected to increase further during the coming year. However, the recent OPEC+ deal cancellation and overflow of crude oil in the international market has severely affected the crude price in the first of 2020.
• Hence, the high volatility of the oil prices in the market adversely affects the drilling and completion activities, in turn, hindering the growth of well logging services market in the country during the forecast period.

Ecuador Wireline Logging Services Market Competitive Analysis

The Ecuador wireline logging services market is moderately fragmented. Some of the key players are Schlumberger Limited, Halliburton Company, Baker Hughes Company, Weatherford International plc, and China National Petroleum Corporation.

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