The North American coiled tubing services market is expected to record a CAGR of 3.7% during the forecast period. Factors such as the rising number of mature fields in North America, coupled with increasing energy demand, are driving the coiled tubing industry in the region. As the coiled tubing units are used while drilling, completion and intervention operations, new discoveries, and shale oil and gas are promulgating the coiled tubing services market. On the other hand, the volatile crude oil prices and high maintenance cost are the factors that are restraining the growth of the coiled tubing services market in North America.
- The coiled tubing services market is expected to be majorly driven by the well intervention segment during the forecast period, which is preferred being done through the coiled tubing technique.
- Development of the deepwater and ultradeep water reserves are expected to create a significant amount of opportunity for the North American coiled tubing services market.
- The United States has dominated the coiled tubing services market, owing to increased shale oil and gas development in several basins, along with shift from vertical to horizontal wells for greater formation access.
Key Market Trends
Well Intervention Segment to Dominate the Market
- Coiled tubing well intervention is mostly preferred as the coiled tubing unit allows for operations, such as stimulation, re-perforation, fluid pumping, fishing, sand control, and zonal isolation. The increasing capital expenditure on well performance enhancement and well cleaning is expected to drive the well intervention segment.
- The demand for well intervention operations in maturing offshore fields in the Gulf of Mexico and other onshore fields in the United States is driving the coiled tubing services market. Moreover, the continuous shale activities in North America, with the presence of major upstream operators, is presenting long-term contract opportunities for the coiled tubing services market.
- According to a Canadian government report published in 2018, oil production from Canada is anticipated to reach 4.5 mmbpd by 2020, and production is expected to increase from an offshore well situated in the West Orphan Basin, offshore Newfoundland, and Labrador, which is estimated to hold 25.5 bbl of oil and 20.6 tcf of gas.
- Therefore, increasing oil and gas exploration and production activities leading to greater well intervention demand are promulgating the coiled tubing services market in North America.
Increasing Demand from the United States to Drive the Market Demand
- Despite the volatile crude oil prices scenario, the quest for unconventional reserve production in the United States has resulted in the drilling of more wells than their actual completion. Rig efficiency in the country is on the rise, and the number of wells a rig can drill each year is increasing at a significant pace.
- The coiled tubing services market in the country is expected to be driven by the expanding producing well base and an ever-increasing lateral length in newly drilled horizontal wells.
- The United States is considered to be the ground for new technology, with a consequential large build-up of coiled tubing units, and related companies keeping the rates competitive, making coiled tubing workovers more viable.
- The United States, as of 2019, is the largest producer of oil and gas. In the United States, there are more than 900,000 active oil and gas wells, and more than 130,000 have been drilled since 2010. In 2018, the United States has witnessed three significant oil discoveries, including two in the Gulf of Mexico, at Ballymore (545 Mb) at a depth of 2,000 m underwater, and at Appomattox (140 Mb) under 2,300 m of water.
- The matured oil and fields of Permian Basin and Bakken Ford require intervention operations to increase the productivity of the wells. Therefore, the coiled tubing services market in the United States is primarily growing by drilling activities and redevelopment of matured fields.
The North American coiled tubing services market is fragmented. Some of the key players in the market include Baker Hughes Co., Calfrac Well Services Ltd, Halliburton Company, National-Oilwell Varco Inc, and Schlumberger Limited.
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