Oil-Well Cement Market Market Outlook:
The Global Oil-Well Cement was valued at USD 1,535.3 Million in 2021 and is projected to reach a value of USD 3,113.6 Million by 2030 growing at a CAGR of ~8.3% between 2022 and 2030.
Cement is the primary component of concrete, which is widely used as a building material. Oil-well cement, also known as plugging cement, is a special kind of cement that is used in the cementing engineering of oil or gas well. It consists of Portland cement or blended cement, along with additives. Its performance remains constant in well cementing applications at extremes of depth, temperature, and pressure.
Oil-well cements are used for oil-well grouting, sometimes called oil-well cementing. Cement for oil-wells must be able to withstand the high temperatures and pressures of these deep wells while setting slowly. Oil-well Cement is intended for use in the oil and gas industry and its main function is to make wells function properly. It plays a significant role in improving productivity and efficiency of the drilling operations.
Oil-well Cement Functions: It supports the casing and the vertical and radial loads applied to the casing, it forms a quick, sealed extraction channel for the oil or gas layer to prevent mixed flow and burst, It isolates the gas, water, and oil layers, as well as other surrounding formations and forming zones for the well, It helps to drain excess subsurface fluids, It helps to limit unusual pore pressure, It prevents the casing from corrosion. Oil-well cement is used extensively in oil and gas wells. The gaps between the casing and the rocks are sealed off using cement slurry.
One of the main macroeconomic factors affecting the worldwide oil-well cement market is economic growth. Economic growth is the gradual rise in an economy's output of goods and services as measured by its gross domestic product (GDP). Energy demand rises as a result of economic expansion, particularly in emerging countries.
Economic growth and global energy use are tightly tied, especially for oil and gas. When a country develops due to industry, urbanization, and population growth, energy consumption rises. The demand for oil and gas exploration and production is fueled by this rise in energy consumption, necessitating the usage of cement in oil wells.
Crude Oil Prices
The price of crude oil is among the most significant macroeconomic factors that affect the global market for oil-well cement. The oil and gas sector is the main end-user of oil-well cement. Variations in the price of crude oil have a direct impact on the exploration and production activities of oil companies. Additionally, the profitability of oil and gas firms is impacted by crude oil prices, which affects those companies' investment choices. Oil-well cement demand rises when crude oil prices are high due to the oil and gas producers have more money to spend on exploration and production.
Mergers, Partnerships, and Acquisitions
Companies target huge market size and share, resulting in a consolidation strategy. The cement and chemical industries are experiencing an increase in mergers and acquisitions. Companies use mergers and acquisitions to accomplish a range of business objectives, including as boosting market size and share, achieving long-term growth, and cutting costs.
By acquiring or integrating with businesses in those nations, chemical companies in established economies can take advantage of the low costs in emerging economies. Integrating with big enterprises gives small businesses in developing countries access to capital that helps them fund initiatives like R&D and business expansion. For instance, CEMEX, S.A.B. de C.V. purchased Buzzi Unicem SpA.
Market Driver- Increasing oil and gas exploration activities
Over the past few years, the demand for energy has dramatically expanded. The growing demand for energy on a worldwide scale is depleting conventional energy supply. By 2050, 9.7 billion people are anticipated to inhabit the planet.
In light of this, an exponential increase in energy demand is anticipated. There are many reasons for the rise in oil and gas exploration activity, including the development of new technology and supportive governmental regulations. In order to find unconventional reserves, oil and gas corporations are urged to invest more money on exploration.
Since other cement-based goods are now in high demand, high-quality oil-well cement is also becoming more and more necessary. As a result, the market for oil-well cement has seen advancements and expansion. Plugging cement, commonly known as oil well cement, is a type of specialty cement used in.
Market Driver- Growing investments in oil and gas infrastructure
Increasing investments in oil and gas infrastructure are just one of the reasons that have an impact on the global market for oil-well cement. These investments are made in building and maintaining current oil and gas infrastructure, such as pipelines, drilling rigs, refineries, and storage facilities, by concerned governments and significant market players.
Oil and gas infrastructure is crucial for the exploration, production, transportation, and refinement of crude oil and natural gas. Due to the increased demand for these resources, the infrastructure that supports the oil and gas industry needs to be maintained and extended. Energy demand is rising in lockstep with the world's population growth and rising standard of life. Because of this, there have been more efforts made to explore for and produce oil and gas.
Market Driver- Rising demand for deep-water drilling
As a result of an increase in the number of ageing oilfields in onshore sites, increased deep and ultra-deepwater exploration operations are expected to drive the global oil-well cement market. It is anticipated that deepwater drilling exploration and production activities will significantly increase in countries like Brazil, Guyana, Nigeria, and others.
The development of these deposits is being strongly aided by factors like technological breakthroughs and the growing feasibility of deepwater and ultra-deepwater projects, as well as the creation of new markets, including those in the Gulf of Mexico, Gabon, Senegal, Guyana, Trinidad & Tobago, and Senegal.
Norwegian investments in deepwater oil and gas platform development and exploration, for instance, totaled more than USD 6 billion in 2020. While offshore demands lengthy project development cycles and high fixed costs.
Market Restraint- High capital investments
High capital expenditures have a substantial impact on the worldwide oil-well cement market and serve as a key market restraint. The construction of oil wells depend heavily on oil-well cement. Closing the space between the solid casing and the adjacent rock formations is the fundamental goal of oil-well cement.
The cost of the material and the price of the product are impacted by the significant capital investment required for production as well as the setup of a new production facility. When choosing an investment strategy, a number of factors must be taken into consideration, including high starting costs, raw material costs, energy costs, infrastructure costs, and market demand. Cement manufacturing requires a high capital investment, which reflects the large expense involved.
Market Opportunity- Growing demand for eco-friendly cement
Future expansion of the oil-well market is anticipated to be facilitated by the rising demand for eco-friendly cement in the global cement market for oil-wells. The increased focus on sustainability and the global reduction of carbon footprint is responsible for the growing acceptance of eco-friendly cement.
Sustainable materials or a reduction in the energy needed to create cement are two ways that environmentally friendly varieties of cement are intended to lessen the carbon footprint of the production of concrete. Geopolymer oil-well cement, cement with no silica, cement with a low carbon footprint, cement with magnesium oxide, and hempcrete are a few examples of environmentally friendly goods.
The production of cement requires the emission of greenhouse gases, which are harmful to the environment. The cement industry is one of the largest global producers of carbon dioxide (CO2). In order to reduce the cement industry's negative effects on the environment, there is a growing need for ecologically friendly cement.
Market Opportunity- Technological advancements
Market expansion prospects for oil-well cement are anticipated to result from technological developments in the oil and gas industry. To increase hydrocarbon exploration and production, the oil and gas industry is implementing innovative technologies.
The utilization of cutting-edge drilling techniques including hydraulic fracturing and horizontal drilling, as well as the development of enhanced drilling fluids, directional drilling, extended reach drilling, coiled tubing drilling, underbalanced drilling, and electric drilling rigs, are all examples of this.
To ensure the efficiency and safety of operations, these technologies require cutting-edge cementing solutions. These advancements in drilling techniques have increased the demand for oil-well cement that can withstand high temperatures and pressure, which is producing profitable chances for the market's expansion.
Scope of the Report
The report on the Global Oil-Well Cement includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Oil-Well Cement – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
2015 and 2020
by Type (Ordinary, Moderate Sulphate-Resistant, High Sulphate-Resistance), by Application (Offshore, Onshore)
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered
Alpacem, Buzzi Unicem SpA, Dalmia, Di-Corp, Inc., Fairborn Cement Company, Heidelberg Materials, HOLCIM, India Cements Ltd., Kerman Cement Industry Group, Oman Cement Company (s.a.o.g), Raysut Cement Company, Sharjah Cement & Industrial Dev, SHREE DIGVIJAY CEMENT CO. LTD, TPI Polene Public Company Limited, and Trinidad Cement Limited.
Based on type, the Global Oil-Well Cement is segmented into Ordinary, Moderate Sulphate-Resistant, High Sulphate-Resistance.
The ordinary segment is expected to expand at a CAGR of 8.0% during the forecast period, as s suitable for use in wells with depths up to 6,000 feet and temperatures up to 140°F. It is commonly used in vertical wells and as a surface cement for conductor casing strings. It can also be used for plugging and abandonment operations.
Ordinary oil-well cement refers to Grade A and Grade C cement. These cements are the least expensive and have the lowest strength that is typically used in shallow wells with low pressure and temperature. However, it is important to note that the selection of oil-well cement is dependent on the specific well condition, and the type of cement selection may vary widely based on the factors such as the depth of the well, temperature, pressure, and chemical properties of the formation.
Based on Application, the Global Oil-Well Cement is segmented into offshore and onshore.
The onshore segment is estimated to constitute a 79.6% share of the market by 2030, owing to an increase in the number of onshore wells, rising oil production globally, and increasing consumption, particularly in emerging areas such as in Asia Pacific, Latin America, and Middle East and Africa, are some of the other important factors thus, driving the market during the forecast period.
The onshore oil-well cement is a type of hydraulic cement that is specifically designed for use in onshore drilling operations. It is used to create a casing around the wellbore, providing structural support and preventing the migration of fluids between different formations.
Based on regions, the Global Oil-Well Cement Market is separated into five regions, namely, North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The market in North America held a significant share of the market during the forecast period.
The Oil-Well Cement market is anticipated to expand most quickly in North America during the anticipated time period, owing to the increasing number of oil-well cement in the region. Growing investments by manufacturing companies in the development and production of oil-well cement is expected to fuel the market. Rising demand for oil-well cement by oil and gas companies is attributed to their ease of operation and functionality. Increasing demand for oil-well cement from the chemical and petrochemical industries, thus fueling the market during the forecast period.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the Global Oil-Well Cement
- Historical, Current, and Projected Market Size in terms of Value
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints, and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Oil-Well Cement Performance
- Moderate Sulphate-Resistant
- High Sulphate-Resistance Actuators
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
Key Market Players Profiled in the Report
- Buzzi Unicem SpA
- Di-Corp, Inc.
- Fairborn Cement Company
- Heidelberg Materials
- India Cements Ltd.
- Kerman Cement Industry Group
- Oman Cement Company (s.a.o.g)
- Raysut Cement Company
- Sharjah Cement & Industrial Dev
- SHREE DIGVIJAY CEMENT CO. LTD
- TPI Polene Public Company Limited
- Trinidad Cement Limited
Manufacturers operating in the Global Oil-Well Cement include Alpacem, Buzzi Unicem SpA, Dalmia, Di-Corp, Inc., Fairborn Cement Company, Heidelberg Materials, HOLCIM, India Cements Ltd., Kerman Cement Industry Group, Oman Cement Company (s.a.o.g), Raysut Cement Company, Sharjah Cement & Industrial Dev, SHREE DIGVIJAY CEMENT CO. LTD, TPI Polene Public Company Limited, and Trinidad Cement Limited.