Middle East and North Africa Perforating Gun Market - Growth, Trends, and Forecasts (2023 - 2028)

Middle East and North Africa Perforating Gun Market - Growth, Trends, and Forecasts (2023 - 2028)

The Middle East and North African perforating gun market is expected to register a CAGR of 4.1% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Presently the market has reached pre-pandemic levels.

• Factors such as the rise in oil and gas drilling activities across the various countries in the Middle East and North African region, such as Saudi Arabia, United Arab Emirates, Algeria, and Egypt, and increased shale gas exploration, are expected to drive the perforating gun market during the forecast period.
• On the other note, renewable energy is likely to increase its share and contribute to around 50% of power in the MENA region in the next few decades. This is expected to restrain the perforating gun market in the coming years.
• Nevertheless, the discovery of new oil and gas fields, particularly in Shadoon, Shehab, Shorfa, Umm Khansir, and Samna in the Middle East, and the reperforation of old wells are expected to provide opportunities for the perforation gun market.
• Saudi Arabia is one of the largest markets for perforating guns due to increased exploration and production activities in its tight oil and shale reserves.

• Horizontal well development is gaining popularity, owing to the benefits associated with the same technological advancements that have led to increased economic viability.
• Drilling in shale reserves involves directional or horizontal drilling, leading to increased contact with the pay zone and advanced production. Hence, a growing focus on unconventional reserves is expected to be a significant driver for the perforating gun market during the forecast period.
• With a growing trend of multilateral wells, the demand for horizontal drilling activity is increasing in offshore regions, which, in turn, is driving the market. Technological innovations and the increasing efficiency of horizontal drilling and multi-stage hydraulic fracturing technologies are unlocking vast unconventional shale and tight hydrocarbon resources in Saudi Arabia.
• Moreover, in October 2022, ADNOC Drilling secured a contract worth USD 980 million to hire two jack-up offshore rigs and associated manpower and equipment, to support ADNOC's offshore operations. This, in turn, culminates the growth in the usage of perforating guns across the region.
• Also, countries such as United Arab Emirates, Qatar, Algeria, Libya, and Saudi Arabia have started exploring the commercial viability of their shale reserves. Hence, with the rising exploration and production of shale oil and gas through horizontal drilling, the perforating gun market is also expected to witness a significant demand.
• Therefore, owing to the above points, the horizontal and deviated well segment is expected to witness dominant growth during the forecast period.

• Saudi Arabia is one of the major global oil producers, with 10.954 million barrels per day (mb/d) of crude oil production in 2021. It is the largest crude oil exporter in the world, registering nearly USD 161.7 billion in revenue in 2021. As a significant crude oil exporter, the country had great control over the international upstream market. The country plays a crucial role in controlling crude oil prices due to its high surge capacity. This can be considered a good sign for perforating gun markets.
• Also, the country has the world's fifth-largest estimated shale gas reserve, and thus, it has great potential for the country to replicate North America's unconventional reserves development growth. This culminates in the growth in the use of perforated guns in the region.
• Moreover, in March 2022, the state oil company Saudi Aramco's Saudi Arabian Oil Company (Aramco) announced it would boost its capital expenditure to USD 40 to 50 billion, which further bolstered the country's exploration and production activities.
• Furthermore, in February 2022, Saudi Arabia announced the discovery of natural gas fields in five regions of the kingdom bordering Iraq, i.e., Shadoon, in the central region southeast of Riyadh, Shehab, in the empty quarter, Shehab, Shorfa, Umm Khansir, Samna. These gas discoveries may create a market for perforated guns within the region.
• Therefore, owing to the above points, Saudi Arabia is expected to dominate the Middle East and North African perforating gun market during the forecast period.

The Middle East and North African perforating gun market is moderately fragmented. Some of the key players in the market (in no particular order) include Baker Hughes Company, Schlumberger Limited, Weatherford International PLC, NOV Inc., and Halliburton Company.

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