Well Cementing Market Outlook 2031
The global well cementing market size was around USD 9.65 Billion in 2022 and is estimated to reach USD 19.94 Billion by 2031, expanding at a CAGR of 8.4% during the forecast period, 2023–2031. The market growth is attributed to the rising well construction activities and pressure pumping activities.
Well, cementing is the method of preventing wellbore aging and slurry buildup. In order to fill the space between the wellbore and casing, cementing entails pumping a solution of cement, chemical additives, and water into the wellbore via the casing. A successful cementing operation has a number of benefits, including improved well durability and cost-effective hydrocarbon output.
COVID-19 Impact On Well Cementing Market
The research report finds that the COVID-19 pandemic affected the market. The well-cementing market faced various difficulties, due to the outbreak of the coronavirus pandemic. Well-cementing activities are slowing down due to the global lockdown restrictions and labor shortage.
The supply chain disruptions and economic recession are causing more difficulties for the well-cementing market. The production and expansion rate increases during the forecast period and the market is anticipated to resume all its well-cementing operations.
Well Cementing Market Dynamics
The research report presents a complete market overview by providing a detailed analysis of the Well Cementing Market market trends, existing drivers, growth opportunities, and emerging challenges. The global well cementing market report offers up-to-date information about factors that can shape the market outcome or overall performance during the forecast period, 2023 to 2031.
Major Drivers
Increasing investments in E&P activities coupled with untapped hydrocarbon reserves
Government entities and prominent operators across the world are consistently investing in the development of drilling activities to meet the rising demand for hydrocarbon. Moreover, the forecasting and strategic planning of oil and gas consumption are likely to support the market.
Oil & gas is the major source of energy for several industry verticals. Recently, the world bank stated that 80% of the world derives from cities. Thus, the development of urban areas is resulting in high consumption of oil and gas. The massive potential in untapped hydrocarbon reserves is anticipated to boost the market growth during the forecast period.
Rising energy demand
The rising energy demand in the transport sector is expected to propel the market expansion in the coming years. Fossil fuel energy sources including natural gas, oil, and coal are used to meet energy demands from various industry verticals. Global energy demand is increasing due to advances in both developed and developing countries and industrial activities.
Current Restraints
Drop in oil prices
A drop in oil prices is expected to support stronger national economic growth, however, it can disrupt regional growth among energy-producing states. Thus, a drop in oil prices is projected to hamper the market expansion during the forecast period. Moreover, stringent environmental regulation by the government is anticipated to hinder market growth.
Cement powder is not an eco-friendly product. Also, it is a harmful chemical. Cement powder causes respiratory diseases when inhaled by individuals. Thus, the government imposes stringent rules regarding the use of well-cement. The growing rate of lung diseases and respiratory infections is a key factor for these governmental laws.
Well-Cementing Market Opportunities
Ultra-deep oil and gas exploration activities
Ultra-deep oil and gas exploration activities are expected to create lucrative opportunities for the key market players. The implementation of a well-cementing process protects the wells from damage and loss of oil resources.
The well-cementing process protects the wells from damage and loss of oil resources. Innovation and advancements in the market are anticipated to enable high-end cementing equipment and applications. These developments in the market are projected to attract more end-users during the forecast period.
Scope of Well Cementing Market Report
The global well-cementing research report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Well Cementing Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Application (Offshore and Onshore), and Type (Primary Cementing and Remedial Cementing)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Weatherford; Calfrac Well Services Ltd.; Allied Oil & Gas Services; Sanjel Energy Services; Gulf Energy SAOC; Halliburton; Schlumberger; COSL - China Oilfield Services Limited; Baker Hughes; C&J Energy Services; Trican Well Service Ltd.; and Superior Energy Services
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Well Cementing Market Segment Insights
Application Segment Analysis
On the basis of application, the global well cementing market is segmented into offshore and onshore. The onshore segment is projected to expand at a considerable CAGR during the forecast period. Prominent market players depend on onshore exploration owing to feasible E&P and various advantages.
The operational cost in onshore is low as compared to offshore due to the feasible transportation of equipment from one place to another and the easy availability of workforce. The onshore segment accounted for 84.1% of the well cementing market during the forecast period.
The offshore segment is anticipated to account for a major market share during the forecast period, due to the increasing exploration activities. Technological advancements in equipment have made drilling operations more feasible and cost-effective. However, offshore exploration needs high funding, and complexities associated with the environment are projected to trigger a problem.
Type Segment Analysis
Based on type, the global market is divided into primary cementing and remedial cementing. The primary cementing segment is expected to hold a significant share of the market in the coming years. Several oil and gas companies focus on primary cementing to avoid contamination of groundwater and fluid movement between formations. Moreover, zonal isolations are attained through primary cementing to protect the casing from corrosion. Well cementing is an important part of productive drilling operations. Primary cementing offers stability to the well.
The remedial cementing segment accounts for a significant market share. Remedial cementing is done when there is any rectification or fault in primary cementing. Moreover, the primary cementing is anticipated to outpace its counterpart, due to its requisition while drilling.
Regional Analysis
In terms of regions, the global well cementing market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the forecast period. Several countries in the region such as India, China, Indonesia, Thailand, and Australia are focusing on their Capex to discover new hydrocarbon reserves. The market growth is attributed to the rising population in the region, which consumes a sizeable amount of oil and gas.
The market in North America is anticipated to expand at a rapid pace during the forecast period, due to tremendous drilling activities in the U.S. and Canada. Moreover, enormous potential in untapped hydrocarbon reserves and unconventional hydrocarbons increased drilling activities that were set to influence the requisition of well cementing.
Segments
The global well cementing market has been segmented on the basis of
Application
Type
- Primary Cementing
- Remedial Cementing
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Weatherford
- Calfrac Well Services Ltd.
- Allied Oil & Gas Services
- Sanjel Energy Services
- Gulf Energy SAOC
- Halliburton; Schlumberger
- COSL - China Oilfield Services Limited
- Baker Hughes
- C&J Energy Services
- Trican Well Service Ltd.
- Superior Energy Services
Competitive Landscape
Key players competing in the global well cementing market share are Weatherford; Calfrac Well Services Ltd.; Allied Oil & Gas Services; Sanjel Energy Services; Gulf Energy SAOC; Halliburton; Schlumberger; COSL - China Oilfield Services Limited; Baker Hughes; C&J Energy Services; Trican Well Service Ltd.; and Superior Energy Services.
Key players are actively engaged in R&D programs and aim at the expansion of manufacturing units to expand their consumer base and increase their product portfolio. For instance, In August 2019, Halliburton secured a contract for drilling, testing services, and completion from Woodside Energy BV. The operations include cementing, drilling, logging, lower completions, e-line/slick line, well testing services, and coiled tubing.
An agreement has been signed between Kuwait Oil Company and Halliburton for an integrated offshore drilling service of six high-pressure high-temperature exploration wells on two jack-up rigs in the Arabian Gulf. The company is expected to offer multiple services including wireline & perforating, well testing, cementing, coring, and all offshore logistical services in July 2019.
Equinor awarded a drilling and well service contract to a consortium, that includes Halliburton, Baker Hughes, and Schlumberger. The consortium is anticipated to provide cementation & pumping, integrated drilling services, drilling & completion fluids, electrical logging, and completion services.
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