"Actionable Insights to Fuel Your Growth"
The global well cementing market size stood at USD 8.82 billion in 2018 and is projected to reach USD 16.63 billion by 2026, exhibiting a CAGR of 8.3% during the forecast period.
The economic prosperity of any country depends upon its energy policies and availability of natural resources. Currently, more than half of the energy demand meet by hydrocarbons, which indicates its significance in the international energy market. The extensive economic growth in different industry verticals resulted in increased consumption of oil and gas. Several companies are massively investing in exploration and production activities to compensate for the unwavering consumption of hydrocarbons. The national and state-owned oil companies are enormously investing in drilling activities. Well cementing is the most important part of the completion and workover operation while drilling to offer firm structure to the well casing and restrict fluid movement from the reservoir to the wellbore. Cementing involves a mixture of cement, water, and chemical additives which are pumped into the wellbore through the casing and fills the gap between casing the wellbore. A well cementing is bifurcated into primary and remedial cementing. The primary objective of primary cementing is to hold the casing while remedial cementing requires only if there is any fault or overhaul in primary cementing. An effective cementing operation offers several advantages such as enhances the durability of the well and economical production of hydrocarbon. Furthermore, it helps to prevent blowouts and protect the casing from corrosion. Hence, cementing assists in carrying out the production of oil and gas economically and ensures minimum hazards to the environment.
Request a Free sample to learn more about this report.
Upstream activities continue to expand in North America due to increased drilling and production activities in the U.S. The country’s primary focus is on a recent discovery in the Permian basin which has substantial potential for the production of hydrocarbons. In an assessment published by the United States Geological Survey (USGS), an estimated 46 billion barrels of oil, 280 trillion cubic feet (tcf) of gas, and 20 billion barrel of natural gas trapped in low permeability shale formations. Furthermore, the forecast and data executive summary of 2018 published by the WorldOil indicated a 12% increase in drilling activities in the U.S. with a 14.8% rise in the total depth of the well. Also, the organization forecasted a 4.6% rise in global drilling activities. Tremendous demand for oil and gas is the main reason for the increasing number of drilling activities across the world. Several key companies in the U.S. are persistently investing in exploration activities to produce a high amount of hydrocarbon. Also, the favorable government policies are likely to underpin the exploration activities in the country. Besides the U.S., Canada is even playing an essential role in enhancing the domestic production of oil and gas. Approximately 7,200 wells were drilled in 2017 to meet the growing demand. Therefore, the exponential investment in the extraction of unconventional hydrocarbon resources and inflating demand for oil and gas are expected to boost the market.
“Consistent Investment in E&P Activities Along with Untapped Hydrocarbon Reserves Set to Boost the Market”
Some of the major operators in the world and government entities are continuously investing in the expansion of drilling activities to meet the growing demand for hydrocarbon. Furthermore, the strategic planning and forecasting of oil and gas consumption likely to underpin the market. Also, the enormous potential in untapped hydrocarbon reserves is expected to boost the market.
“Exponentially Rising Demand for Oil & Gas Likely to Drive the Market”
Oil & gas is the prime source of energy for many industry verticals. The World Bank recently reported that 80% of the world's GDP comes from cities. Thus, the expansion of urban areas is resulting in high consumption of oil and gas. In addition to this, the exponential growth in the transport sector may leverage the demand for oil and gas which subsequently underpin the growth of well cementing market.
“Primary Cementing Projected to Outpace its Counterpart”
The extensive exploration activities around the world driven by increasing consumption of oil and gas by various end-users. Well cementing is a vital part of ensuring safe and productive drilling operations. Many oilfield service companies pay keen attention to primary cementing to avoid fluid movement between formations and avoid contamination of groundwater. Zonal isolation is also achieved through primary cementing to keep well economically productive and protect the casing from corrosion.
To know how our report can help streamline your business, Speak to Analyst
It also provides well stability which enhances the overall performance of the well. On the other hand, remedial cementing is carried out only if there is any fault or rectification in primary cementing. However, the primary cementing is forecasted to outpace its counterpart owing to its requisition while drilling.
“Onshore Segment Continues to Dominate Owing to Consistent Investment”
Most of the major oil tycoon companies rely on onshore exploration due to several advantages and feasible E&P. The onshore segment accounts for a substantial share in global oil and production. The operational cost in onshore is quite low as compared to the offshore segment owing to the easy availability of workforce, feasible transportation of equipment from one place to other. In contrast, offshore exploration requires high capital investment and complexities associated with the environment are likely to trigger a problem. Therefore, growing investment in an onshore application is set to boost the market.
Global energy demand is driven by rapid economic growth in key regions and the gradual shift in residence of the human population from rural to urban areas. This trend is likely to increase the consumption of oil and gas in different industry verticals such as transportation, manufacturing, seaborne trade, and aviation, among others. Consequently, the prominent oil and gas companies are extensively increasing Capex on exploration and production. For instance, North America is projected to lead the global well cementing market owing to tremendous drilling activities in the U.S. and Canada. In addition to this, massive potential in untapped hydrocarbon reserves and unconventional hydrocarbons increased drilling activities that set to leverage the requisition of well cementing.
North America Well Cementing Market Size, 2018
To get more information on the regional analysis of this market, Request a Free sample
Subsequently, other parts of the world are also exhibiting a positive growth on crude oil extraction. In Latin America, the growth is primarily driven by Brazil, Mexico, Venezuela, and Argentina, which concentrating on increasing domestic production of oil and gas. Simultaneously, European countries are eyeing for expansion of the ongoing projects to reduce the dependence on foreign countries. Russia is likely to dominate Europe in terms of overall drilling activities happening. On the other hand, the UK, Germany, Norway are exhibiting steady growth during the forecast period.
Asia Pacific holds a high potential for development of well cementing market. China, India, Indonesia, Thailand and Australia are increasing their Capex to discover new hydrocarbon reserves. The growth is attributed to the presence of the largest populous countries in the world which consume a sizeable amount of oil and gas. On the other hand, the oil baron countries in the Middle East are aiming to increase their production. African countries have a lot of potential for development of energy & power sector, which is attracting investors interest in discovering hydrocarbon reserves in the region.
“Halliburton and Schlumberger Enjoys the Exponential Growth”
Renowned companies in oilfield service companies highly dominate the market. Halliburton and Schlumberger accounted for a lion’s share of well cementing market. Both the companies offer an inclusive solution to meet the requirement specified by health, safety & environment authority. Halliburton is one of the oldest companies that provides cementing solutions to its customers across the world. A tremendous amount of money has been invested by these companies in research and development to improve cementing quality. Simultaneously, many other players in the market create a healthy competition resulting in cost reduction of the cementing process. The rise in demand for oil and gas from various industry verticals is likely to provide lucrative opportunity for well cementing market in forthcoming years.
Oil & gas continues to dominate the global energy outlook. The leading conglomerate around the world and government entities are consistently investing in the exploration and production of hydrocarbon to meet the increasing demand for oil and gas. Drilling is a primary activity for the extraction of hydrocarbon in which casing plays an important role in zonal isolation between groundwater and oil and gas. The casing should be strong enough to withstand stresses while drilling that can be avoided by providing wellbore stability. Well cementing ensures the stability of the well by supporting the borehole walls and protect casing against corrosion and erosion. Cementing can be done in two ways, i.e. Primary Cementing and Remedial Cementing. Primary cementing is a quintessential part of providing zonal isolation. If zonal isolation is achieved effectively, the future life of the well, safety, government regulations, other requirements would be met during the life of the well. Remedial cementing is used to rectify and correct any problems associated with primary cementing. Hence, cementing is very important for the overall life of the well and to maintain the surrounding ecology of the well clean and green.
An Infographic Representation of Well Cementing Market
To get information on various segments, share your queries with us
The report offers an elaborative analysis of numerous factors affecting the global well cementing market. These include opportunities, growth drivers, threats, key developments, and restraints. In addition to this, it further helps in analysing, segmenting, and defining the market based on different segments such as type and application. It strategically analyses several strategies such as product innovations, mergers, alliances, joint ventures, and acquisitions adopted by players in the industry.
Value (USD Billion)
Fortune Business Insights says that the well cementing market was valued at USD 8.82 billion in 2018.
The global well cementing market is forecasted to reach USD 16.63 billion in 2026.
The well cementing market is expected to grow at a CAGR of 8.3% in the forecast period.
The well cementing market in North America was valued at USD 3.83 billion in 2018.
Primary cementing is expected to lead the well cementing market during the forecast years owing to its ability to provide strong zonal isolation and wellbore stability.
Rise in drilling activities around the world along with exponential investment by government and private entities in exploring untapped reserves likely to drive the market; however unstable crude oil prices in the international market set to retard the growth of the well cementing market.
Halliburton, Schlumberger, BJ Services, COSL - China Oilfield Services Limited, Baker Hughes, and C&J Energy services are some of the leading companies of well cementing market
Well cementing is a significant part of workover and completion activities to avoid contamination of groundwater and provide zonal isolation. It also ensures wellbore stability, protects the casing from corrosion, prevents blowouts by instantaneously forming a seal and productive life of the well.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry