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

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

United States wireline logging services market is expected to grow at a CAGR of 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 logging 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 growth of the market during the forecast period.

Key Highlights

• The increasing exploration activities in the offshore region is expected to boost the demand for wireline logging services market during the forecast period.
• The increasing oil and gas discoveries, coupled with the liberalization in the industry, have been leading to the creation of new opportunities for the players to invest in the country studied market.
• Development of the deepwater and ultra-depwater reserves are expecetd to drive United States wireline services market during the forecast period.

Key Market TrendsOffshore Region to Dominate the Market

• The offshore oil and gas sector had been subdued in the past few years, mainly due to the crude oil price being lower than the breakeven price of several offshore oil and gas fields. As a result, the demand in the oil and gas wireline services market was negatively impacted.
• The Brent crude oil price started showing signs of improvement after mid-2016 and remained well above USD 60 per barrel throughout 2018. This, coupled with the cost reduction program of upstream oil and gas companies, resulted in gaining the confidence of investors for final investment decisions for projects, which got canceled during the low commodity price environment.
• For instance, in May 2019, Dana announced that it had commenced the drilling operations at its Merak-1 well, offshore Egypt, located in the North El Arish concession, also known as Block 6. This block is in the Eastern Mediterranean Basin, where other world-class giant natural gas discoveries have been made in recent years.
• However, in early 2020, oil prices got severely affected by the OPEC deal cancelation and excessive crude oil and gas flow in the international market. Which is expected to slow down the investment in the offshore region, thus, it is expected to have a negative impact on the growth of the market during the forecast period.

Deepwater and Ultra-deepwater Activities to Drive the Maket

• The investments related to deepwater projects are expected to be limited, before 2025. These resources are typically more expensive to develop, take a longer time to reach full production, and require additional investment in infrastructure, because of their presence in remote locations. However, most of the projects that are currently under development are expected to continue their operations.
• Despite high fixed costs and the requirement of long lead times from project conception to the first production, offshore deepwater oil projects provide large production volumes that can achieve relatively low per-barrel operating costs over the reservoir life cycle.
• In 2019, United States together accounted for around 40% of ultra-deepwater production, globally. The presence of the most experienced international oil companies in the deepwater development and largest deepwater reserves makes United States the most attractive country for upstream deepwater investment.
• In April 2019, Shell Offshore Inc., a subsidiary of Royal Dutch Shell plc, announced a significant discovery at the Blacktip prospect in the deep water United States Gulf of Mexico. Evaluation is ongoing and appraisal planning is underway to further delineate the discovery and define development options.
• Further, in February 2020, Eni announced a new oil discovery on the Saasken Exploration Prospect in Block 10, located in the mid-deep water of the Cuenca Salina in the Sureste Basin, Offshore Mexico. According to preliminary estimates, the new discovery may contain between 200 and 300 million barrels of oil in place.
• The new discoveries of oil and gas fields demand exploration of the field to reach the production stage. Thus, these new discoveries are expected to drive the country’s wireline logging services market during the forecast period.

Competitive Landscape

United States wireline logging services market is fragmented. Some of the key players operating in the market are Schlumberger Limited, Halliburton Company, Baker Hughes Company, Expro Group, and ADES International.

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