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The global coiled tubing services market size was valued at USD 5.45 Billion in 2018 is projected to reach USD 8.07 Billion by 2026, exhibiting a CAGR of 5.11% during the forecast period.
Crude oil undoubtedly dominates the global energy demand among all other energy resources. However, continuous fluctuation in crude oil prices has hit the hard oilfield service market. But in the last couple of years, oil prices have recovered that will boost the oil and gas industry. The oilfield services are transforming the oil and gas industry by providing end-to-end support for exploration and production companies. They deliver number of operations for cost-effective production of oil and gas which include drilling, completion, production, supply, and logistical support service in onshore and offshore applications.
Coiled tubing is an essential part of oilfield service market and useful from drilling to production phase of exploration and production activity. Coiled tubing is a continuous length of small-diameter steel pipe rolled over large reel brought to the well site when any well repair or workover activities are to be performed. Initially, coiled tubing is designed for well services work, but in recent times, it has gained wider acceptance among operators for expanding range of workover and drilling application and its ability to reduce overall costs.
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The trend towards extending the reach of wells favors coiled tubing to drill or to convey tools and equipment in high angle wellbores. The coiled tubing technology is frequently used to deploy tools and materials through production tubing or casing, while remedial work is performed on producing well.
Operators are continuously looking for advanced and cost-effective technology to enhance the performance of well for more production of oil. Therefore, raising capital expenditure in well intervention activities along with increasing drilling operations are projected to underpin the coiled tubing service market.
North America is an undisputed leader in the coiled tubing service market owing to overwhelming investment in light tight oil (LTO) by the United States. Booming shale gas production has been a game-changer for the US petrochemical industry. As per IEA report 2018, the United States alone covered 80% of the world’s demand growth, with Canada, Brazil, and Norway all IEA family members able to cover the rest. The fastest-growing source of global oil demand is petrochemicals in the U.S. The share revolution in the United States has opened up new energy sources for cheap domestic energy feedstock. A large group of chemicals is derived from oil, and natural gas, which is crucial to manufacture products that satisfy the rising demand.
Thus, government and private entities are showing attentiveness in exploration and production activities. At the same time, conglomerate companies are spending enormous amount to cut down product costs and enhance productivity. Coiled tubing has been extensively used by several companies to improve the performance of the well. The United States is home to some of the leading companies in the oilfield services such as Schlumberger, Halliburton, and Baker Hughes among others, which play a key role in global oil and gas industry. Therefore, North America is projected to grow at a rapid pace and provide lucrative market for the growth of the coiled tubing service market.
“Strong Global Economic Growth is Projected to Underpin Robust Increase in Oil Demand”
A resilient economic growth in emerging market and developing countries are projected to experience high consumption of oil and gas in the forecast period. Simultaneously, overwhelming investment by the U.S. and OPEC in exploration and production activities to meet the rising demand for oil and gas is set to provide a lucrative market for the energy and power industry. Moreover, coiled tubing techniques present 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 projected to drive the coiled tubing service market.
“Growing investment in E&P activities and economical method to produce extensive amount of hydrocarbon”
The global oil demand is rising steadily after the oil crisis in 2015. This may provide lucrative opportunities for operators to invest more in drilling operations in order to meet the growing demand. Enormous economic development has made a positive impact on the growth of the oil and gas industry. Following this trend, the U.S. is overwhelmingly focused on the light tight oil sector to become the global supplier of oil and gas. Also, the OPEC is continuously working hard to achieve its oil production target. In addition to this, several countries are enormously investing in unexplored areas to increase their production. Coiled tubing service ensure a cost effective production method to produce extensive amount of oil and gas. Coiled tubing has been used in several well intervention activities and drilling operations. Thus, coiled tubing is an essential service for production of hydrocarbon which underpins the growth of the coiled tubing service market.
“Well Intervention Is Projected To Surpass Drilling Segment Owing To Expanding Workover Application”
The oilfield service providers are consistently working to deliver economical solutions to E&P companies. Well, intervention is carried out on oil and gas well to extend its producing life, improving performance or providing access to stranded or additional hydrocarbon reserve. Well intervention includes number of services such as wireline, tractors, coiled tubing and hydraulic workover among others. The scope of well intervention ranges from replacing failed mechanical equipment down-hole to changing the flow dynamics and production profiles and repairing wellheads. Also the rising capital expenditure on well performance enhancement and well cleaning is projected to drive the well intervention segment. Therefore, well intervention is expected to account for substantial share in coiled tubing service market.
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“Massive Investment To Develop Onshore Resources”
Onshore exploration is one of the established applications of the oil and gas industry. Over the year’s onshore exploration evolved with technological development, onshore exploration is expected to outpace offshore exploration owing to huge investment in producing oil and gas. Several countries around the world primarily focused on onshore exploration and production activities due to ease of operation and competitive operational and production cost as compared to offshore. However, in the recent period offshore application is gaining momentum owing to higher potential in recovering substantial amount of hydrocarbon. But in the forecast period, onshore application is expected to dominate the coiled tubing service market.
The world economy has been witnessing moderate growth over the last couple of years owing to rising trade and geopolitical tension which increased the uncertainty about the future of the global trading system and international cooperation. This will certainly affect the upcoming projects and investment in oil and gas field. But after seeing major oil fall in 2015, the oil industry is recovering from the setback and growing at a steady rate. Several countries revising their policies for securing better economic prospects for all. Oil and gas plays a crucial role in overall economic growth of the world. Though world is moving towards cleaner technology, hydrocarbon is expected to dominate world energy consumption. Currently, there is no concrete alternative to oil and gas which means the industry may grow at steady pace. The IEA reports state that the world oil demand is set to increase by 6.9mb/d by 2023 at an average of 1.2mb/d a year. The United States is one of the top global producers and playing a crucial role in global oil market. The presence of top conglomerate companies in the world and favorable government policies is supporting the growth of the oil and gas industry. Investment in hydraulic fracturing to recover light tight oil (LTO) or shale gas, extension of production in offshore application, and consistent research and development for enhancing performance of the well is expected to leverage the growth of the coiled tubing in North America.
North America Coiled Tubing Service Market Size, 2018
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Similarly, other regions are contributing to the growth of the global oil market. European countries are highly inclined towards clean energy sources but hydrocarbon will continue to dominate the Europe energy market. Russia is one of largest producers of oil and gas in Europe and exports large amount of hydrocarbon to surrounding countries. Norway, United Kingdom, Italy, etc. are focusing on increasing their domestic production to cut down the imports of oil and gas. These factors would certainly offer a positive outlook for the growth of the coiled tubing service market. Asia Pacific forecasted to offer lucrative market for the growth of the coiled tubing services market. The high consumption of oil and gas in China and India is expected to offer profitable opportunities in oilfield service market. Both countries are the largest importers of oil and gas owing to tremendous economic growth. The government and national oil companies are working together to increase domestic production to cut down imports of oil and gas which may drive the market in APAC. Latin America playing a significant role in global coiled tubing service market due to continuous investment in oil and gas sector by Brazil, Mexico, Argentina and Venezuela among others. The presence of OPEC is influencing the market in MEA. Saudi Arabia, UAE, Oman, Algeria, and Nigeria among others are continuously striving to increase their production as their economies are based on oil imports. Thus, companies and governments are investing in E&P activities, which is projected to boost the coiled tubing service market in MEA.
“Schlumberger Is One of the Renowned Company in The Global Coiled Tubing Service Market”
Schlumberger is an undisputed leader in the global oilfield service provider. The company has a presence in more than 120 countries and truly pioneering in technological innovation. Over the year’s company always strived for modernizing equipment solutions to optimize oil and gas production. Schlumberger is committed to investing in research and development programs to elevate the performance of oil wells, which makes it an ideal service provider in most of the oilfield services. Similarly, there are other competitive players in the market playing a significant role in providing world-class facilities to oil and gas industry. Some of the prominent companies in the global market are Baker Hughes, Halliburton, Basic Energy Services, C&J Energy Services, Key Energy Services, Archer – the well company, Essential Oil, China Oilfield Services Limited, Superior Energy Services, National Oilwell Varco, BJ Services, National Energy Services Company (Tarshid), Global Tubing, LLC, Calfrac Well Services, Cudd Energy Services, Antech, and Pioneer Energy Services among others.
The global condition of the oil and gas industry has substantially changed over the last couple of years after oil prices begin to fall at the end of 2015 resulting oil crisis in 2016. From 2017, the oil and gas industry is moderately growing with positive outlook in the forthcoming years. With global demand rising steadily, more countries are taking an interest in investing exploration activities. The United States continues to dominate oil supply growth driven by light tight oil (LTO) and has a growing role in crude trade. Brazil, Canada, and Norway will also contribute to supply growth. United States joined hands with other oil exporting countries which increases oil and gas supply from non-OPEC. The upshot of our analysis is that oil and gas continue to dominate global energy supply though there is an emergence of clean energy technology. Therefore, government and private entities are consistently working together to increase the production of oil and gas by adopting advanced technology. Coiled tubing is necessary while exploration and production of oil and gas along with several other applications such as fishing, well stimulation, scale mill-out, sand screen repair, well cleaning, well completion, and well intervention, among others. These wide application areas provide profitable market for coiled tubing services.
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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 coiled tubing service market, such as mergers & acquisitions, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key retail industry trends, competitive landscape and company profiles.
Value (USD Billion)
In July 2019, Kuwait Oil Company (KOC) and Haliburton have signed an Integrated Offshore Drilling Services contract for six high-pressure high-temperature exploration wells on two jack-up rigs in the Arabian Gulf. In the contract Haliburton will provide and manage drilling, wireline and perforating, well testing, coring cementing, coiled tubing, and all offshore logistical services.
In March 2019, Global Tubing LLC recently launched Duracoil 130, which designed for a high-pressure environment. It has higher fatigue life, resistance to abrasion minimizing downtime, and expanding operational thresholds.
Fortune Business Insights says that the coiled tubing service market was valued at USD 5.45 billion in 2018.
The global coiled tubing service market is projected to reach USD 8.07 billion in 2026.
Growing at a CAGR of 5.11%, the global coiled tubing service market will exhibit steady growth in the forecast period (2019-2026).
The coiled tubing service market in North America was valued at USD 2.96 billion in 2018.
Well intervention is expected to lead the coiled tubing service market during the forecast period.
Incessant investment by upstream companies to enhance the performance of the well is expected to drive the coiled tubing service market. Volatile prices of crude oil and the international market are retarding the growth of the coiled tubing service market.
Schlumberger, Baker Hughes, Halliburton, Basic Energy Services, and C&J Energy Services, amongst others, are some of the top companies in the coiled tubing service market.
Coiled tubing is an integral part of the oilfield services, from drilling to workover applications. Also, it has been used in well cleaning, well repairing, and enhancing the performance of the well.
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