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GCC Oilfield Service Market, By Service (Drilling Services, Completion & Production Services, Well Intervention Services, Seismic Services); By Type (Equipment Rental, Field Operation, Analytical Services); By Location (Onshore, Offshore); By Country (Saudi Arabia, UAE, Qatar, Bahrain, Kuwait, Oman), Competitive Landscape & Forecast, 2019-2029

GCC Oilfield Service Market, By Service (Drilling Services, Completion &...

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GCC Oilfield Service Market, By Service (Drilling Services, Completion & Production Services, Well Intervention Services, Seismic Services); By Type (Equipment Rental, Field Operation, Analytical Services); By Location (Onshore, Offshore); By Country (Saudi Arabia, UAE, Qatar, Bahrain, Kuwait, Oman), Competitive Landscape & Forecast, 2019-2029
GCC Oilfield Service Market, By...
Report Code
RO6/142/1009

Publish Date
22/Aug/2024

Pages
200
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Report Overview
Increasing exploration and production of oil and gas, high adoption of technological advancements in drilling and extraction techniques, regional governments' supportive policies and regulations, and the increasingly high demand for energy resources are expected to contribute to the expansion of GCC Oilfield Service Market during the forecast period between 2023 and 2029.

GCC Oilfield Service Market - Industry Trends & Forecast Report, 2029

GCC oilfield service market size was estimated at USD 14.68 billion in 2022. During the forecast period between 2023 and 2029, the size of GCC oilfield service market is projected to grow at a CAGR of 5.76% reaching a value of USD 20.54 billion by 2029. The GCC (Gulf Cooperation Council) oilfield service market is influenced by several key driving factors, including high fluctuations in global oil and gas prices, which impact exploration and production activities in the region. Also, technological advancements in drilling and reservoir management techniques play a crucial role in shaping the market. Government policies and regulations, as well as geopolitical stability in the Gulf region, also significantly impact the industry. Further, increasing energy demand, the need for enhanced oil recovery methods, and a growing emphasis on environmental sustainability are driving forces for the GCC oilfield services market, fostering innovation and investment in the sector.

Oilfield Services - Overview

Oilfield services refer to a broad range of activities and support services provided to the oil and gas industry. Services encompass drilling, well completion, maintenance, and other critical operations necessary for extracting and managing hydrocarbon resources. Oilfield service companies offer specialized equipment, technology, and expertise to optimize exploration and production processes. This sector plays a pivotal role in the energy industry, ensuring efficient and safe oil and gas extraction. Services may include drilling rigs, well stimulation, reservoir management, and environmental solutions. Oilfield services are essential for maximizing the productivity and profitability of oil and gas ventures worldwide.

GCC Oilfield Service Market

Growth Drivers

Digital Transformation across Oil & Gas Sector

Adoption of advanced digital technologies and data-driven solutions is a significant growth driver for the GCC oilfield service market. Oil and gas companies in the Gulf Cooperation Council (GCC) region are increasingly integrating smart technologies, such as IoT sensors, AI-driven analytics, and automation into their operations. This digital transformation enhances operational efficiency, optimizes production, and reduces downtime. It enables real-time monitoring and predictive maintenance, ultimately driving cost savings and ensuring a competitive edge in the global energy market. As GCC nations continue to embrace innovation, the Oilfield Service sector is poised for substantial growth.

Restraints

Escalating Geopolitical Uncertainties due to Prolonging Israel-Hamas War

GCC oilfield service market growth faces a significant restraint in the form of geopolitical uncertainties. Tensions and conflicts in the Gulf region can disrupt oil production and exploration activities, leading to fluctuations in demand for oilfield services. Political instability, trade disputes, and regional rivalries can create an unpredictable operating environment for companies in the industry. The raging war between Israel and Hamas, a Palestine-based militant and nationalist organization, sends shockwaves across various industries, transcending geographic boundaries and affecting businesses globally. The conflict between Israel-Hamas has been a longstanding, deeply entrenched geopolitical issue. On October 07, 2023, Hamas, in a surprise and heavy attack, struck Israel with thousands of rockets and infiltrations killing more than 1,100 people. In response, the prime minister of Israel declared war against Hamas and anticipated that the war would be ?long and difficult.' The Israel Defense Forces (IDF) launched airstrikes and ground attacks in Gaza and West Bank. The United States sent its warships and aid to Israel and stated that many of its citizens were killed in the war.

The prolonging war in the Middle East will affect industries across verticals and regions. Energy is one of the adversely affected industries by the war. The Middle East, including Israel, is a vital hub for oil production and transportation. Any disturbance in Middle East region instantly raises concerns about oil supply disruptions, leading to increased oil prices worldwide. For example, oil prices increased by more than 4.5% or more than USD 4 a barrel in Asia trade on October 09, 2023. Brent crude surged USD 4.18, or about 5%, to USD 88.76 a barrel, meanwhile the US West Texas Intermediate crude was up more than 5% or USD 4.23 at USD 87.02 a barrel. Consequently, industry analysts anticipate higher volatility in oil prices. The higher and volatile oil prices will have a domino effect on ancillary industries, including oilfield services, and various other industries across verticals. The high volatility can hinder long-term strategic planning, investment, and project execution, making it challenging for oilfield service providers to maintain stable and consistent growth in this critical sector of the Gulf economy.

Impact of COVID-19 on GCC Oilfield Service Market

GCC oilfield service market witnessed a significant impact from the COVID-19 pandemic. Lockdowns, reduced demand, and disrupted supply chains led to a sharp decline in oil prices and drilling activities across the Gulf region. Oilfield service companies faced revenue losses and downsizing. The industry adapted with cost-cutting measures, increased digitization, and streamlined operations to weather the crisis. As the GCC nations gradually recovered, there was a resurgence in drilling, offering new opportunities. However, the sector remains cautious and focused on resilience, and prepared for future uncertainties in the global energy landscape.

GCC Oilfield Service Market

Segmental Coverage

GCC Oilfield Service Market - By Service

Based on service, GCC oilfield service market is divided into Drilling Services, Completion & Production Services, Well Intervention Services, and Seismic Services segments. Drilling Services encompass activities related to the initial drilling of oil and gas wells. Completion and Production Services involve activities that enhance well productivity after drilling. Well, Intervention Services are focused on maintaining and optimizing existing wells. Further, Seismic Services encompass exploration and data collection techniques to identify potential oil and gas reserves. These segments collectively constitute the GCC oilfield service market, providing a comprehensive range of services crucial to the oil and gas industry in the Gulf Cooperation Council region.

GCC Oilfield Service Market - By Type

By type, GCC oilfield service market is divided into Equipment Rental, Field Operation, and Analytical Services segments. The Field Operation segment is the largest type in terms of market share and significance. The segment encompasses various activities related to the day-to-day operations and maintenance of oilfields, including drilling, production, well management, and overall field optimization. It plays a pivotal role in ensuring the efficient and continuous extraction of oil and gas resources. While Equipment Rental and Analytical Services are also essential components of the oilfield service market, Field Operation remains the dominant force, driving the industry's functionality and productivity across the Gulf Cooperation Council (GCC) region.

GCC Oilfield Service Market - By Location

By location, GCC oilfield service market is split into Onshore and Offshore segments. These segments represent distinct operational areas within the oil and gas industry, each with its specific set of challenges and requirements. Onshore activities involve drilling and production operations conducted on land, while offshore activities take place in bodies of water, such as the sea. The division into these segments allows oilfield service providers to tailor their offerings and expertise to meet the unique demands of each environment, ensuring efficient and effective support for the extraction and production of oil and gas resources in the Gulf Cooperation Council (GCC) region.

GCC Oilfield Service Market - By Country

Geographically, GCC oilfield service market covers six member countries: Saudi Arabia, UAE, Qatar, Bahrain, Kuwait, and Oman, in the GCC region. Saudi Arabia is the largest country in the GCC oilfield service market. The kingdom stands as a dominant player in the market due to its vast oil reserves and extensive oilfield operations. It is followed by the UAE, which is another significant segment, known for its advanced infrastructure and strategic importance in the global oil industry. The remaining segments, including Qatar, Bahrain, Kuwait, and Oman, also contribute to the market, but their shares are comparatively smaller. Nevertheless, the collective growth of these segments reflects the overall dynamic and vital nature of the oilfield service industry in the GCC region.

Competitive Landscape

Major players in the oilfield service market include AlMansoori Specialized Engineering, Saudi Aramco, Abu Dhabi Oilfield Services, Superior Oilfield Services LLC, National Arabian Petroleum Services Company, Petroleum Services Co. Kuwait, Special Oilfield Services Co. LLC, STARK International, Middle East Oilfield Services, RAAS Oilfield Services & Supplies WLL, FOS Energy LLC, Oman Oil Industry Supplies & Services Co. LLC, GAC Group, and Topaz Energy and Marine Drive. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

By Service
Drilling Services
Completion and Production Services
Well Intervention Services
Seismic Services

By Type
Equipment Rental
Field Operation
Analytical Services

By Location
Onshore
Offshore

By Country
Saudi Arabia
UAE
Qatar
Bahrain
Kuwait
Oman

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