The Middle East wireline logging services market is expected to grow at a CAGR of over 2% during the forecast period of 2020 – 2025. Factors such as increased discoveries and increased investment in the offshore sector are expected to drive the market for wireline logging services. However, the volatile nature of oil prices in recent years led to decreased exploration activity, causing a slowdown for the middle-east wireline logging services market.
- The onshore segment is expected to have a maximum share in the market. Onshore drilling encompasses all the drilling sites located on dry land and accounts for over 70% of worldwide oil production.
- Saudi Arabia is expected to dominate the market, owing to the increased exploration activity in the country to compensate for declining fields elsewhere. Oil and gas drilling activity in Saudi Arabia is anticipated to grow on account of the government policy to drive the oil and gas production in the country.
- The increasing exploration activity in the region to compensate for aging mature oil and gas fields is expected to offer significant opportunities for the wireline logging services market in the region.
Key Market Trends
Onshore Segment to Dominate the Market
- The market for wireline logging services in Middle East saw a growth slowdown owing to the volatile oil prices in recent years. But with the oil prices expected to become stable in the coming years, the market is expected to show growth during the forecasted period.
- Onshore oil production accounts for around 70% of global oil production. Increased onshore exploration activity worldwide in the forecasted period is expected to help grow the market for wireline logging services.
- Moreover, the region is home to the world’s largest onshore oilfields, consisting of Ghawar Oilfield in Saudi Arabia, with proved reserves upwards of 75 billion barrels of oil.
- As the crude oil prices are expected to recover, the upstream investment is expected to grow significantly and bring several projects online, thereby driving the market.
Saudi Arabia to Dominate the Market
- Saudi Arabia is expected to maintain its dominance in the forecast period, owing to the increased drilling and completion activities.
- In 2018, the state-owned oil company, Saudi Aramco, turned to United States' oilfield services giant Halliburton to explore and exploit the country's shale gas potential and develop unconventional energy resources to meet Saudi Arabia's increasing energy demand.
- In February 2019, ADES International, an oil and gas drilling and production company, received two onshore drilling contracts in Saudi Arabia worth USD 150 million. Each secured contract has a tenure of seven years, with five fixed years and two years of optional terms.
- The country also plans to double its gas production over the next decade, as it intends to switch local power plants to gas from oil, so it can export more oil, which is a positive indicator for the oil and gas well logging services market.
- Therefore, the factors above are expected to drive the market in the forecast period, similar to the trend witnessed in recent years.
The Middle East wireline logging services market is partially consolidated, with major players holding a big share of the market. Some of the major companies are Schlumberger Limited, Halliburton Company, Baker Hughes Company, and Weatherford International plc, among others.
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