Oilfield equipment rental is a service that allows you to rent equipment for extracting and drilling oilfields for a specific amount of time. In oilfields, specialised machinery is needed to drill wells into the ground and extract crude oil. Some of the key oilfield equipment available for hire includes pressure and flow equipment, drilling, pumps and valves, drill bits, tubes, wireline tools, artificial lift systems, blowout preventers (BOP), and mud pumps. Renting is regarded to be more cost-effective than buying oilfield equipment because it involves less acquisition and upkeep.
The size of the global market for Oilfield Equipment Rental Services is expected to reach US$ 184.3 Billion by 2032, expanding at a compound annual growth rate (CAGR) of 4.3%.
Covid-19 Impact & Market Status:
COVID-19 sickness began to spread over the world in the early years of 2021, infecting millions of people globally, prompting major countries around the world to impose foot prohibitions and work stoppage orders. Most businesses, with the exception of medical supplies and life support products, have been severely disrupted. so, the production and supply chain departments have been interrupted in the Oilfield Equipment Rental Services industry. Due to several nations' travel limitations, getting the pieces of equipment to the running companies has been difficult throughout the outbreak. In Despite the pandemic, the Oilfield Equipment Rental Services Market has expanded because to new technologies and continued demand for oil and gas. The epidemic, on the other hand, has lowered crude oil prices, lowering the market value of Equipment Rental Services.
The oilfield equipment rental industry is likely to be dominated by drilling equipment
The drilling sector dominated the oilfield equipment rental market during the forecast period. Shale mining is widespread in North America, and technological advances in drilling equipment used in such unconventional shale reserves are expected to move the drilling equipment market forward.
North America is anticipated to lead the global oilfield equipment rental market
North America is anticipated to lead the global oilfield equipment rental market, given the region's rising unconventional hydrocarbon output. Exploration and production activity in the region are expected to expand as big oil corporations raise their capital spending. The oilfield equipment rental sector in North America is expected to grow for all of these reasons.
The greatest segment of the oilfield equipment rental market is onshore
The greatest segment of the oilfield equipment rental market is onshore. This segment would be driven by rising demand for rental equipment Large onshore shale reserves in the US and Australia are expected to drive demand for onshore oilfields.
Deep water and ultra-deep water drilling technology advances are expected to generate profitable prospects for industry participants.
From 2022 to 2029, the global Oilfield Equipment Rental market is expected to increase at a CAGR of 3.89 percent, from USD 20.50 billion in 2020 to USD 28.90 billion in 2029.
Due to growing industrialization and rising demand for oil and gas, the Oilfield Equipment Rental Services Market has a bright future. Drilling and hole cleaning methods have substantially improved because to technological advancements such as horizontal drilling, vertical drilling, and a Radio Frequency enabled Identification enabled device. Offshore exploration efforts have exploded in recent years, coinciding with significant infrastructural development in a number of countries. The expansion of the Market has been aided by such factors.
The cost of purchasing oilfield equipment can put a strain on the operating industry. Managing equipment and moving pieces of equipment from one area to another takes additional time and effort. As a result, the majority of oilfield operators prefer to rent or hire oilfield equipment since they offer customised alternatives.
The convenience element drives the operational sector to rent Oilfield Equipment. The majority of startups are hesitant to purchase oilfield equipment since it requires a significant initial expenditure. Maintenance and exploration activities necessitate the use of qualified personnel. Such factors are increasing the need for Oilfield Equipment Rental Services.
Renewable energy generation is becoming more popular in some wealthy countries. However, some new businesses continue to run on fossil fuels. The demand for products made by crude oil refineries is growing. Regardless of oil price fluctuations, demand for gasoline, plastics, and diesel remains strong. The Oilfield Equipment Rental Services Industry has significant growth potential due to the rising demand for these commodities.
The market's growth is projected to be impeded by volatile oil and gas prices, which have caused concern among oil and gas businesses. A shortage of skilled people is a major roadblock that could stymie industrial growth in the future years.
The major market players of Oilfield Equipment Rental Services Market are Transocean Ltd, Seadrill Ltd, Schlumberger Limited, Baker Hughes Company, and Weatherford International PLC.
Major Developments in Oilfield Equipment Rental Services Market:
Laser technology is used to perforate and vaporise the rock formation. In open hole horizontal wells, laser perforation is combined with hydraulic fracturing to maximise production. There are number of advantages og using laser technology over older approaches. Existing technologies may create rock compaction, however laser technology can alleviate this issue.
Baker Hughes, a GE Company (BHGE), was granted a contract by i3 Energy plc for their Liberator drilling operation in July 2019. Under the provisions of the contract, BHGE is responsible for directional drilling, drilling fluids, mudlogging, formation evaluation activities, and wellhead services.
Railing systems allow pad drilling technology to move from one area to another. Such systems have some downsides, such as wildlife habitat disruption and air pollution. Recent equipment known as walking rigs, on the other hand, is capable of moving with their power and providing exact information on subterranean locations.
Oilfield Equipment Rental Services Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 28.90 billion.|
|Growth Rate||CAGR of 3.89% during 2021-2028|
|Segment Covered||By Equipment, By Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and South Africa|
|Key Players Profiled||Transocean Ltd, Seadrill Ltd, Schlumberger Limited, Baker Hughes Company, and Weatherford International PLC & among others.|
Key Segments of Oilfield Equipment Rental Services Market
- By Equipment
- Drilling Equipment
- Pressure and Flow Control Equipment
- Fishing Equipment
- Other Equipment
- By Application
- By Region
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- South America
- Rest of South America
- Middle East & Africa