Due to increased oil and gas exploration throughout the world, the Slickline Services Market is predicted to develop rapidly over the forecast period.
The size of the global slickline services market was estimated at US$ 8.72 billion in 2021 and is expected to increase by 2.4% annually to reach US$ 10.03 billion by 2027.
Covid-19 Impact & Market Status
The COVID-19 pandemic's numerous lockdowns and restrictions caused a large reduction in demand for the oil and gas industry, which also affected demand for slickline services. Furthermore, significant drilling activities have been delayed as a result of COVID-19's global rollout in Q1 2020, which has decreased the demand for slicklines. For instance, Beach Energy cancelled Diamond Offshore's one-year offshore drilling operation in the Otway basin in Southern Australia in April 2020 due to logistical challenges brought on by the Covid-19 pandemic services. The project used the semi-submersible Ocean Onyx.
The Offshore segment will grow at a faster pace
Onshore drilling refers to any drilling that takes place on dry ground and accounts for 70% of global oil output. Global crude oil prices have begun to rebound and are steadily increasing, and onshore projects are easier to start than offshore ventures. As a result of the optimism around the recovery of crude oil prices, onshore projects are likely to rise significantly during the projection period, generating demand for slickline services. As a consequence of the increased demand for oil, additional oil wells are likely to be dug in the next years, increasing demand for slickline services globally. Adnoc Onshore received five-year contracts for USD 3.8 billion from ADONOC Drilling in 2021 for continuous drilling, workovers, and other well services.
North American region will grow significantly in the coming period
The slickline services market is anticipated to grow quickly throughout the anticipated period, with North America taking the lead in that region. The cost of offshore drilling is falling as supply chain efficiency increases, making North American offshore oil and gas projects more competitive. In terms of policy and government assistance, the US federal government has scheduled an auction for more than 80.9 million acres of land for oil and gas extraction in 2021. The enormous Cantrell field in the shallow waters of the Gulf of Mexico is drying up, which has recently resulted in a drop in Mexico's yearly oil production. The Mexican government, on the other hand, wants to increase private investment in the Gulf of Mexico territory under its control. For instance, private businesses in Mexico claimed 12 commercial oil and gas finds between 2017 and 2020. As a consequence of the increased oil and gas drilling and completion operations in the area, slickline service demand in North America is predicted to rise over the forecast period.
The expansion of oil and gas exploration and the increased focus on oil and gas production in established oilfields are the primary drivers of the worldwide slickline services industry.
During the predicted period, the slickline services market is expected to increase at a higher pace. The worldwide exploration and production (E&P) of oil and gas has increased in tandem with the expansion in natural gas output. However, the intricacy of the processes involved in slickline services may limit worldwide market expansion.
Many oil and gas firms, such as Schlumberger Limited and Halliburton, are concentrating on oil and gas exploration and production across the world. For example, Schlumberger and Torxen Energy (Canada) inked a deal with Cenovus Energy Inc. (Canada) in October 2017 to buy the Palliser Block in Canada for oil and gas exploration and production. Furthermore, in August 2019, Halliburton (US) and Woodside (Australia) inked a contract for drilling and completion services at the offshore SNE Field in Senegal, Africa, for oil and gas exploration and production.
Latest Innovations in the Slickline Services Market: A Snapshot
• The recent growth of horizontal drilling, shale plays, and fracking have considerably raised the need for drilling and completion fluids. In the Uinta Basin, for example, operators of horizontal wells announced extensions and finds of 92 million additional barrels of proven crude oil reserves in 2020.
Slickline Services Market Scope
|Revenue forecast in 2027
|US$ 10.03 billion
|CAGR of 2.4 % during 2017-2027
|Tool, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Schlumberger Limited , China Oilfield Services Limited , Halliburton Company , Weatherford International Plc.
Key Segments of the Slickline Services Market
- Pulling Tools
- Bridge Plug
- Gauge Cutter
- Downhole Bailer
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa