Coiled Tubing Services Market Size, Share & COVID-19 Impact Analysis, By Service (Well Intervention (Well Completion and Well Cleaning) and Drilling), By Application (Onshore and Offshore), and Regional Forecast, 2020-2027

The global coiled tubing services market size was valued at USD 5.52 billion in 2019 and is projected to reach USD 6.73 billion by 2027, exhibiting a CAGR of 5.3% during the forecast period. The market is propelled by increased exploration and production activities, rising demand for well intervention services, cost-effectiveness, and technological advancements, contributing to market expansion and efficiency.

The development of deep water and ultra-deep water is holding steady growth opportunities for the market. An increase in drilling, completion, and intervention services in the onshore and offshore platform also fuels the demand for coiled tubing services. The shift towards extended reach wells will boost the market growth. The coiled tubing technology is frequently used to deploy tools and materials through production casing or tubing and exploring applications such as shales, tight gas, and tight oil.

The government and private entities are showing interest in exploration and production activities owing to the huge potential of shale and tight gas reserves. At the same time, conglomerate companies are spending an enormous amount of funds to cut down production costs and enhance productivity. The mature oil fields, such as Permian Basin and Bakken Ford, require well intervention operations to amplify well production.  Hence, coiled tubing has been extensively used by various oilfield operators to enhance the productivity of the well. 

Volatility in Oil Prices Owing to COVID-19 has Impacted Oil & Gas Industry

The rising concerns regarding the transmission of COVID-19 virus have significantly impacted the oil and gas industry across the globe. Due to the current scenario, various oil & gas companies worldwide have shut down their manufacturing facilities and services, as more countries implement lockdown strategies to fight against the pandemic. For instance, Aker Solutions has laid off 650 employees in the UK and Norway, and a further notice has been issued for temporary layoffs of up to 6,000 in Norway. As per the International Energy Agency, oil demand has decreased by 29 million barrels per day (BPD) in April 2020 and by 23.1 million BPD in the second quarter.

Many industries across the globe, such as automotive, aviation, power, manufacturing, and transportation, are experiencing a negative impact on their business. The spread of Covid-19 poses a significant threat to the global market owing to restrictions on transportation, industrial and commercial operation, thus leading to impediment in oil demand. Companies across regions have also suspended major oil & gas projects. Furthermore, the COVID-19 pandemic has also impacted crude oil prices, well drilling, production activities, and the supply chain of oil and gas dramatically.

LATEST TRENDS

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Strong Global Economic Growth to Underpin Oil Demand

Increasing investment by the United States and OPEC in exploration and production activities to meet the rising demand for oil and gas is projected to provide a lucrative market for the energy and power industry. The fastest-growing source of global oil demand is petrochemicals in the U.S. The increasing coiled tubing services market share of the United States in new energy sources through affordable domestic energy feedstock will escalate the use of tubing services. Moreover, coiled tubing techniques deliver several advantages over conventional drilling and workover operations. Rapid mobilization and rig-up, smaller environmental footprint, and reduction in time associated with pipe handling while running in and out of the hole are estimated and expected to drive the market during the forecast period.  

Advancements in Shale Oil Extraction to Spur Market Demand

The development of domestic oil shale resources has contributed significant attention in the past decade, which primarily includes emerging recovery technologies, high oil prices, increasing global demand for liquid hydrocarbons, and downfall in the U.S. conventional oil production. In recent years, various initiatives have been taken by private and government entities to encourage the development of the domestic oil shale industry. Coiled tubing operations are essential for improving the extraction of shale oil, which propels the market.

DRIVING FACTORS

Growing Demand for Well Intervention Operations to Drive the Market

High spending in global upstream and operational activities by companies has necessitated the need for well intervention. The increasing production and exploration activities coupled with growth in unconventional resources are major factors driving the growth of the market. Well interventions are done primarily to maintain or increase production, extend the durability of the wells, and resolve significant issues in the wells, which helps to improve well productivity. Furthermore, the oil & gas upstream sector is improving its operational activities and increasing production. All these factors are driving the demand of the market.

Increasing Investment in E&P activities and Growing Initiatives for Exploring Hydrocarbon

The growing oil demand provides lucrative growth opportunities for operators to invest more in drilling activities/operations to meet the increasing energy demand. Economic development has also contributed to the growth of the oil and gas industry. Hence, the U.S. is primarily focused on the tight oil sector and to become the global supplier of oil and gas. Coiled tubing has been used in several well intervention activities and drilling operations and therefore delivers a cost-effective production method to produce large quantity of oil and gas. Thus, coiled tubing is an essential service for the production of hydrocarbon, which underpins the growth of the coiled tubing service market.

RESTRAINING FACTORS

Volatility in Crude Oil Prices and High Maintenance Cost Restraints the Market Growth

Prices of crude oil are dependent on the change in policy, variability in demand & supply, and fluctuations in the global market scenario. Increasing awareness for protecting the environment from developing as well as developed economies have affected the crude oil prices. The maintenance cost involved in delivering coiled tubing services is quite high. Hence, volatility in crude oil prices and high maintenance cost restraints market growth.

SEGMENTATION

By Service Analysis

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Increasing Expansion of Workover Application is Projected to Increase the Well Intervention Segment

Based on the service, this market is segmented into well intervention and drilling. The well intervention segment is further segmented into well completion and well cleaning segment. Well intervention is carried out on oil and gas well to stretch its production life, increasing expansion of workover application improves performance and provides access to additional hydrocarbon reserves. A wide range of scope for drilling services also augments the demand for coiled tubing services in the global market.

By Application Analysis

Increasing Investment in Exploration Activities Fuels Onshore Coiled Tubing Services Over the Forecast Period

Based on the application, the market is broadly categorized into onshore and offshore. The onshore segment is projected to increase the market growth owing to increasing onshore exploration due to huge investment in producing oil and gas. Leading countries around the world primarily focused on onshore exploration and production activities. Growing potential in recovering a substantial amount of hydrocarbon and booming oil & gas production is driving the growth of the offshore segment. But in the industry forecast period, the onshore application is expected to dominate the coiled tubing service market.

REGIONAL INSIGHTS

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Geographically, the global market has been studied across five major regions, which are North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. North America is one of the leading regions which holds huge potential for natural gas, shale gas, tight gas reserves, and oil production, which drives the application of coiled tubing services. As per the IEA report 2018, the United States covered 80% of the world’s energy demand growth, whereas Canada, Brazil, and Norway, and other countries contribute to catering to the rest of energy demand.

Several developing economies are formulating new policies and regulations for improving better economic prospects. Though the world is moving towards a cleaner source of energy, the hydrocarbon is expected to dominate world energy consumption. The IEA reports state that the world oil demand is estimated to increase by 6.9mb/d by 2023 at an average of 1.2mb/d a year. 

KEY INDUSTRY PLAYERS

Schlumberger and Halliburton Incorporated Advanced Technologies for Delivering CT Services

Various regional and international oil & gas companies are consistently working upon developing advanced technologies and featured services for usage in the oil & gas industry. In March 2017, Halliburton introduced spectrum fusion service, the newest offering in the spectrum family of real-time coiled tubing services. It combines fiber optic and electric to provide downhole communication and continuous power for different diagnostic applications. Schlumberger has an optimal portfolio of services and technologies to perform efficient and effective coiled tubing (CT) interventions such as active real-time downhole coiled tubing services which is the foundation for a line of innovative CT services using real-time downhole measurements.

Major companies are focused on undergoing different mergers & acquisitions, product development, and joint ventures to strengthen their position in a competitive environment. The key players are consistently focusing on providing world-class services to its customers worldwide.

LIST OF KEY COMPANIES PROFILED:

• Schlumberger (Texas, US)


• Baker Hughes, a GE Company (Texas, US)


• Halliburton (Texas, US)


• Essential Coil (Calgary, Canada)


• National Oilwell Varco (Texas, US)


• Calfrac Well Services (Calgary, Canada)


• COSL - China Oilfield Services Limited (Dongcheng District, Beijing)


• C&J Energy Services (Texas, US)


• Key Energy Services (Texas, US)


• Archer – the well company (Rogaland, Norway)


• National Energy Services Company (Tarshid)


• BJ Services (Texas, US)


• Global Tubing, LLC (Texas, US)


• Basic Energy Services (Texas, US)


• Superior Energy Services (Texas, US)


• Antech (United Kingdom)


• Pioneer Energy Services (Texas, US)

KEY INDUSTRY DEVELOPMENTS:

• In March 2019, Kuwait Oil Company (KOC) had given a contract of integrated offshore drilling services to Halliburton for six high-pressure high-temperature (HPHT) exploration wells in the Arabian Gulf. The contract will provide coiled tubing and all offshore logistical services. It includes a 3-year term with a six-month extension option and projected to begin in mid-2020


• In March 2019, Global Tubing LLC recently introduced Duracoil 130, which was designed for a high-pressure environment. It has higher fatigue life, resistance to abrasion minimizing downtime, and expanding operational thresholds


• In April 2016, Schlumberger had agreed to acquire the coiled tubing drilling and coiled tubing units from Xtreme Drilling and Coil Services Corp.

REPORT COVERAGE

An Infographic Representation of Coiled Tubing Service Market

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The oil and gas industry continues to dominate the global energy supply though there is an emergence of clean energy technology. These wide application areas provide a profitable market for coiled tubing services. Along with this, the report provides an elaborative analysis of the global market dynamics and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in the global market, such as mergers & acquisitions, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key market trends, competitive landscape and company profiles.

Report Scope & Segmentation