Upstream oil & gas services are services provided for exploration and production of oil & gas on offshore and onshore fields in order to increase production efficiency and production lifespan of projects. A basic level Oil & Gas Upstream process involves three stages: Exploration, Development and Production.
Upstream oil & gas services comprise services, such as inspection, repair & maintenance, sampling, decommissioning, remotely operated vehicle (ROV) drill support, subsea umbilical, risers and flowlines (SURF) support and well stimulation.
Exploration involves sampling services which include attaining and analysing reservoir fluid samples using various techniques, such as wireline formation testers, formation interval testers or modular dynamics testers (MDT).
The development stage consists of ROV Drill Support services which involve maintenance of remotely operated vehicles for supporting exploration & appraisal and development of wells on oil & gas fields. Drilling support services include various services, such as removal of drilling slurry and measurement services. The production stage consists of the remaining services, such as operations and eventual abandonment of the site.
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The APAC Upstream oil & Gas Services market is anticipated to grow at high CAGR during the forecast period, i.e. 2016 to 2021. During the past decade, increasing oil & gas exploration sites coupled with growing subsequent production of crude oil and natural gas in countries of Asia Pacific i.e. Australia, Indonesia, New Zealand and Myanmar, have facilitated the need for Upstream oil & gas services in the region.
The market size of APAC Upstream oil & gas services market is estimated to be over USD 2.5 Billion in 2018. Significant profit margins drawn in providing Upstream oil & gas services are encouraging market participants to venture out extensively in the fields of Upstream oil & gas services.
Focusing on research and development for sampling techniques as well as investment in product innovation has been the major focus of leading companies providing Upstream oil & gas services in the Asia Pacific region. For e.g., remotely operating vehicles that provide drill support services and provide oil & gas customers with light, medium and heavy ROVs that can be used for deeper exploration & drilling services have been introduced by Upstream oil & gas services companies in Australia and Indonesia.
The APAC Upstream oil & Gas Services market is considered to be a highly consolidated market with a base of Upstream oil & Gas Services manufacturers already operating at a global scale. The upstream oil & gas services’ annual growth has been estimated to be 1.5X the annual growth represented by midstream and downstream oil & gas services in the year 2017.
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The SURF support upstream oil & gas service type is expected to be a high growth segment as compared to other segments in APAC Upstream Oil & Gas services market. ROV drill support, sampling and well simulation are the other segments estimated to witness high growth (as compared to the industry average) during the forecast period.
Australia is expected to exhibit relatively higher CAGR over other countries in the APAC Upstream Oil & Gas Services during the forecast period. This is due to the fact that the nation has large reserves of coal, natural gas and crude oil. Australia is one of the top-three net exporters of hydrocarbons in the world.
The country is a net exporter of natural gas and has the largest reserves of natural gas in Asia Pacific. As of 2014, the natural gas production in Australia stood at 2,214.9 Billion cu. ft. Backed by encouraging trade policies amongst the trans-pacific regions and countries as well as the high contribution of the services sector to the country’s GDP growth, Australia is indeed expected to witness high growth in the APAC Upstream Oil and Gas services market.
That apart, the Australian economy has favourable regulatory environment for local firms - it has been ranked 10th in terms of doing business list by World Bank. Also, the foreign trade policy of Australia promotes trade enhanced trade linearization and open markets.
The overall trade of Australia accounted for 42% of its GDP in 2015. Indonesia and Myanmar are considered to be emerging markets for Upstream Oil and Gas services in Asia Pacific with market participants devising market entry strategies for the same.
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Some of the market participants involved in the production and sales of Upstream oil & Gas Services include Chevron Corporation, BP PLC, Eni S.p.A, Origin Energy Ltd., Murphy Oil Corporation, BHP Biliton Limited, INPEX Corporation, Quadrant Energy Australia Limited, Woodside Petroleum Limited and Royal Dutch Shell PLC. The APAC Upstream oil & Gas Services market has been found to be highly consolidated with the market share distributed within the major Upstream oil & Gas Services providers.
The APAC upstream oil & gas service providers operate through regional subsidiaries specific to the region which enable better administration of operations per site involving local labour as against a centralized mode of control.
For e.g. Eni S.p.A operates through its subsidiaries, such as Eni Adfin, Ecofuel SpA, Eni SpA Fuel Centrosud, Eni Corporate University and Eni International Resources, in various geographical regions of the globe, including the Asia Pacific. On the other hand, the Murphy Oil Corporation operates through its three subsidiaries, Murphy Exploration & Production Company (Murphy Expro), Murphy Oil Company (MOCL) and Murphy Expro International. The upstream oil & gas services companies are investing in adoption of advanced technologies to strengthen their position in the global market.
For e.g., BHP Billiton Limited made an investment of USD 900 Million in 2014 and has employed seismic and geophysical surveys in its exploration of oil & gas basins in Western Australia. Another strategy of interest for expansion and consolidation of market footprint in APAC Upstream Oil & Gas services market has been that the companies are targeting their next line of business in greenfield specific projects as compared to existing sites. This is due to the fact that securing high value project sales orders lead to significantly high earnings. Recent project initiations in countries of Indonesia and Myanmar by leading APAC Upstream Oils & Gas services providers support this fact.
The upstream oil & gas services market is likely to secure a CAGR of 6% through 2032.
The upstream oil & gas services market size is estimated to cross USD 11.76 Billion by 2032.
The upstream oil & gas services market is likely to record a value of USD 6.56 Billion in 2022.
Asia Pacific is likely to lead the upstream oil & gas services market.
1. Executive Summary 2. Research Methodology 3. Assumptions and Acronyms Used 4. Market Introduction 5. Asia Pacific Market By Process 5.1. Upstream 5.2. Midstream 5.3. Downstream 6. Asia Pacific Market Analysis By Country 7. Australia Market Analysis 8. New Zealand Market Analysis 9. Indonesia Market Analysis 10. Myanmar Market Analysis 11. China Market Analysis 12. India Market Analysis 13. Malaysia Market Analysis 14. Vietnam Market Analysis 15. Company Profiles 15.1. Schlumberger Limited 15.2. Halliburton 15.3. Baker Hughes Incorporated 15.4. Petrofac Limited 15.5. Weatherford 15.6. TECHNIP 15.7. China Oilfield Services Limited 15.8. Transocean Ltd. 15.9. Fluor Corporation 15.10. Saipem S.p.A
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Asia Pacific Upstream Oil & Gas Services Market
