Well Intervention Market Size, Share & Industry Analysis, By Type (Light Intervention, Medium Intervention, and Heavy Intervention), By Service (Logging & Bottom Hole Survey, Tubing/Packer Failure & Repair, Stimulation, Remedial Cementing, Zonal Isolation, Sand Control, Artificial Lift, Fishing, Reperforation, Others), By Application (Onshore and Offshore), and Regional Forecasts, 2020-2032

The global well intervention market size was USD 8.43 billion in 2019 and is projected to reach USD 15.39 billion by 2032, exhibiting a CAGR of 6.19% during the forecast period. The North America dominated the well intervention market with a share of 38.43% in 2019.

Well intervention is the operation performed on an oil or gas well during or at the end of the production life that enhances the efficiency of well geometry by maintenance, repair, and replacement of the equipment. Well intervention includes workover, slickline, wireline, or coiled tubing, which allows the operator to minimize the possibility of well blockages.

The growing energy demand, along with an increasing number of discoveries, has further surged the demand for crude oil. The rising focus for enhancing the production output, coupled with initiatives to optimize the cost is the key factor attributed to the growth of the well intervention market. The upstream companies are providing customized packages to well operators for well intervention cover to ensure higher efficiency and cost-effectiveness. In addition, the increasing demand for oil & gas from offshore applications is projected to propel the market for well intervention in the forecast period.

COVID-19 has Impacted Investments in Oil & Gas Industry Severely

The ongoing outbreak of the coronavirus pandemic has impacted the oil & gas industry considerably across the globe. Various oil & gas companies worldwide have shut down their manufacturing facilities and services as countries are approaching lockdown strategies to deal with the pandemic. COVID-19 has also created the Russia/Saudi price war, which has become an obstacle for establishing a more flexible business model and better market opportunities for B2B and B2C customers. In addition, it has built a huge gap between demand and supply in the oil & gas industry, which is hampering the investment scenario, production cuts, and mostly the demand. Hence, it is projected to cause a long term impact in the forecast period.

LATEST TRENDS

Increasing Investment in Offshore Sector is a Prominent Trend

The growing demand for gas and oil encouraged offshore activities which further increased the need to invest in offshore platforms in the oil & gas industry. Major upstream countries such as the United States, China, Russia, and Norway are primarily focusing on finding new reservoirs and on improving recovery from existing wells. For instance, in July 2019, Saudi Aramco awarded 34 contracts worth USD 18 billion to boost the oil production capacity of two fields by 550,000 BPD. This has escalated the demand for oilfield services, including intervention, completion, offshore drilling services, floating platform, and workover services around the world.

Rising Focus on Enhancing Operational Efficiency of Wells is a Current Trend

The growing focus on enhancing operational efficiency and a decline in operating and capital expenses have increased the adoption of intelligent digitized devices, services, and solutions. The wide application of wireless mobility, data analysis, advanced technologies, and data collection platforms has enabled a substantial improvement in decision making and performance. The production optimization process includes intelligent decisions, analysis, effective measurement, and modeling, which further improves the output production of oil from oilfields.

DRIVING FACTORS

Increasing Discoveries in Oil & Gas Industry to Boost Growth

The increasing number of oil & gas discoveries in oilfield reserves, along with the significant advancements in technology to raise the production output from oil wells would drive the well intervention market growth. The growing number of key discoveries include Alaska in the U.S., Golan Heights in Israel, Alpine High in West Texas, Stabroek block of Tilapia, Yellowtail (oil), and Haimara (gas-condensate), an offshore gas discovery with the Lang Lebah-1RDR2 exploration well. It is estimated that there may be a hike in oil prices in the coming years. This would help the oil field operators, gas production, and independent exploration companies to invest in oil and gas discoveries and exploration activities.

Surging Initiatives to Increase Production from Aging Wells will Propel Growth

Growing initiatives to integrate efficient production techniques and adaptability to advanced equipment for augmenting the output produced from the existing old and mature wells is set to propel the growth of the market in the projected years. Well intervention techniques are an integral part of effective planning, exploration, and production of oil & gas wells. It would thereby increase the life of production tubing, reduce risks, escalate production, and operate more efficiently.

RESTRAINING FACTORS

Increasing Focus on Renewable Energy & Stringent Regulations for Protecting Environment to Hamper Growth

The increasing focus for generating power from renewable energy sources, along with the stringent regulations for E&P activities are primarily projected to hamper market growth. As per the Energy Information Administration (EIA) data forecast, renewable energy will account for almost 49% of the global electricity output by 2050. Stringent regulations for exploration and production activities in the oil & gas industry would also restrain the market growth. Countries are formulating strict regulations to maintain air quality. For instance, the Environmental Protection and Enhancement Act was formulated in Alberta to support and promote the protection of the environment.

SEGMENTATION

By Type Analysis

High Demand for Cost-Efficient Solutions to Augment the Light Intervention Segment

Based on the type, this well intervention market is divided into light intervention, medium intervention, and high intervention. The light intervention segment is estimated to hold the largest market share as it is considered to be a more cost-efficient solution, unlike the other segments. The medium intervention segment is experiencing a high demand backed by its increasing application in enhancing the quality of subsea wells. The heavy intervention segment is estimated to grow moderately, as the operation of completing wells and replacement of parts such as tubing strings and pumps are performed through this technique.

By Application Analysis

Rising Offshore Discoveries to Bolster Growth of the Offshore Segment

Based on the application, the well intervention market is segmented into onshore and offshore. The offshore segment is estimated to hold the largest market share owing to the increasing investment in subsea oil & gas assets. The onshore segment, on the other hand, is also estimated to grow substantially during the projected period due to the rising number of matured oilfields, along with a high focus on heavy oil reserves.

By Service Analysis

Increasing Number of Active Rigs Worldwide to Accelerate Logging & Bottom Hole Survey Segment

Based on the service, the well intervention market is broadly categorized into logging & bottom hole survey, tubing/packer failure & repair, stimulation, remedial cementing, zonal isolation, sand control, artificial lift, fishing, re-perforation, and others. The logging & bottom hole survey segment is estimated to hold the larger market share owing to an increase in the number of active rigs across the globe. The tubing/packer failure & repair segment is also expected to grow steadily owing to the increasing investment in offshore production in the coming years.

REGIONAL INSIGHTS

Geographically, the global well intervention market is segmented into five major regions, namely, North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America is anticipated to hold a larger market share owing to the rising number of discoveries in the oil & gas industry and the huge potential for exploring oilfields. For instance, in April 2019, Shell discovered oil at the Blacktip oilfield in the Gulf of Mexico. It produced nearly 900,000 barrels per day (BPD) from this deepwater location. The increasing discoveries would propel the need for well intervention in North America.

Asia Pacific is estimated to hold the second-largest market share owing to the increasing number of aged wells, which would further propel the need for intervention of wells. In addition, the National Oil Company (NOC) is investing in offshore E&P activities to augment domestic production, thus providing impetus to the demand for well intervention. Furthermore, many countries from the region are increasing their capital expenditure (CAPEX) to secure future energy demand.

In Europe, many countries are investing in exploring new offshore hydrocarbons reserves to increase domestic production. This factor would help the market in this region to grow. Activities in the offshore platforms have enabled companies to streamline their operations. For instance, in February 2019, DEME integrated its subsidiaries GeoSea, Tideway, A2Sea, and EverSea into DEME Offshore, which has made a split between renewables and oil & gas, to offer a more agile service, for a better market scenario.

Companies from the Middle East & Africa (MEA) are showcasing keen interest in increasing the productivity of oil wells and improving the performance of these wells. Predominantly, Qatar, Saudi Arabia, and the United Arab Emirates (UAE) are increasing their oil production every year. For instance, as per the data published by BP Statistical Review of World Energy 2020, the UAE has surged its production from 3,912 thousand barrels per day (tbpd) in 2018 to 3,998 tbpd in 2019 with a growth rate of 2.2%.

KEY INDUSTRY PLAYERS

Market Players Such as Schlumberger and Halliburton Accounted for Larger Market Share

The global well intervention market is highly fragmented with the presence of a large number of major players around the world. 

• For instance, in November 2019, Aker BP, Schlumberger, and Stimwell Services established an alliance for well intervention and stimulation to fuel oil production.

A significant development in technology for oilfield services has enabled key players to invest more in developing new technologies.

• For instance, September 2019, Halliburton Company announced an asset acquisition of a new portfolio of electro-mechanical downhole cutting tools and tubing punches from Westerton (U.K.) Ltd. These services would deliver a safe and reliable alternative to traditional pipe recovery and intervention across the well lifecycle from exploration.

These significant oil production companies are focusing on adopting different strategies, such as mergers & acquisitions, product development, and joint ventures to strengthen their positions in a competitive environment.

LIST OF KEY COMPANIES PROFILED :

• Schlumberger (Texas, US)


• Baker Hughes (Texas, US)


• Halliburton (Texas, US)


• Weatherford (Texas, US)


• National Oilwell Varco (Texas, US)


• HELIX ESG (Texas, US)


• Oceaneering International, Inc. (Texas, US)


• Expro Group (Reading, United Kingdom)


• Hunting Energy Services (Texas, US)


• Deepwell AS (Avaldsnes, Norway)


• Welltec (Allerød Municipality, Denmark)


• TechnipFMC (London, United Kingdom)


• C&J Energy Services, Inc. (Texas, US)


• Superior Energy Services, Inc. (Texas, US)


• Altus Intervention (Stavanger, Rogaland)

KEY INDUSTRY DEVELOPMENTS:

• In July 2021, Altus Intervention AS has secured a 5 years contract with the NCS operator for the integrated delivery of well intervention technology and services. The expected contract value for the contract period is NOK 600 million. The contract includes the delivery of Cased Hole Logging, Powered Tractor Services, and Fiber Optic Logging together with Altus’ alliance partners.


• In March 2021, Expro and FTAI Ocean LLC, a subsidiary of Fortress Transportation and Infrastructure Investors LLC, formed an alliance for the supply of well intervention vessels to provide full light well intervention services to the subsea oil and gas sector.


• In November 2020, Expro International Group’s subsidiary Expro Group Australia Pty Ltd has secured a contract from Chevron Australia for its innovative subsea riserless well intervention (RWI) solution. The five-year contract includes the supply of light well intervention vessel services for the Chevron-operated Gorgon facility.


• In February 2020, Oceaneering International, Inc. won a contract from BP plc. to provide comprehensive riserless light well intervention (RLWI) services offshore Angola. The company has agreed to provide personnel and equipment related to its RLWI services, remotely operated vehicles (ROV's), survey services, and communication services integrated onto a chartered multi-purpose vessel. 

REPORT COVERAGE

The market research report provides an elaborate analysis of the market dynamics and competitive landscape. Various key insights provided in the report are the recent industry developments such as mergers & acquisitions, partnership & collaboration, the regulatory scenario of major countries, SWOT analysis, upstream investment scenario, profiles of key players, and competitive landscape. It also contains trends analysis, market segments, and introduction to product portfolios of companies. Our analysts have incorporated several unique research methodologies to collect significant information.  

Report Scope & Segmentation