The exploration & production (E&P) companies around the world are shifting their focus toward unconventional oil & gas reserves for producing energy due to the rising utilization of advanced technologies for extracting and processing hydrocarbons, relatively untapped domain of unconventional oil & gas sources, and increasing feasibility for upstream operations. This has led to an increased production of tight oil, shale oil, shale gas, and shale oil in recent years. These factors are resulting in the growing demand for cementing during well commissioning and subsequent drilling processes in the projects.
Well cementing is needed for preventing any fluid movement from the reservoir to the wellbore and for holding the casing in place. According to a report by P&S Intelligence, in 2018, the global well cementing market generated a revenue of $7,577.6 million and is predicted to reach a value of $10,065.4 million in 2024, witnessing a 4.7% CAGR during the forecast period (2019–2024). Well cementing has both offshore and onshore applications. Between these two, the larger demand for well cementing was created for onshore applications during 2014–2018, owing to the rising requirement for oil & gas resources and increasing well operations in onshore areas.
Browse detailed - Well Cementing Market Revenue Estimation and Growth Forecast Report
Among all the regions, namely Europe, North America, Middle East & Africa, Asia-Pacific, and Latin America, North America dominated the well cementing market during 2014–2018 and is further predicted to retain its position during the forecast period because of the increasing number of drilled wells and discoveries of oil & gas reserves and heavy investments by global players in the region. Furthermore, the region has both unconventional and conventional resources for the production of energy in high volume. As of 2017, North America held 13.3% of the global reserves and constituted 21.7% of the worldwide production.
The surging requirement for oil & gas is driving the demand for well cementing. Economic growth around the world has resulted in an increased demand for fossil fuels to cater to the domestic and industrial requirements. The rapidly growing consumption of energy is further projected to drive the E&P activities in the near future. As per the Organization of Petroleum Exporting Countries and International Energy Agency, oil & gas are likely to retain more than 50% share in the energy mix by 2040. This will result in an increased need for well cementing in the coming years.
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