Oct 5 2009
Research and Markets has announced the addition of Frost & Sullivan's new report "North American Oil and Gas Field Services Market" to their offering.
The upstream oil and gas field services in North America excels for technology advancements,representing nearly 40 percent of worldwide services. This research analyze the market for upstream oil and gas field services in the North American region. The market split is segmented by region: United States, Canada and Golf of Mexico; covering land and offshore drilling activities. Furthermore, revenues, market trends and forces, rigs and price analyses, competitive structure and final conclusions are included in the study.
This Frost & Sullivan research service titled North American Oil and Gas Field Services Market provides market drivers and restraints as well as industry challenges. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: drilling contractors, equipment manufacturers, and support services.
Market Overview
Increased Demand for Pipeline Construction and Infrastructure for Energy Transmission Fires Up the Oil and Gas Field Services Market
The upstream oil and gas field services in North America represent nearly 40 percent of the global field services. The market's technological competence is serving it well at a time when the world is running out of easy oil. The maturity of onshore fields is turning oil producers all over the world toward the more technically complex fields in deep water or the Arctic. Other major participants target smaller fields or more complex horizontal wells, such as the oil sands in Canada, which are estimated to hold between 1.7 and 2.5 trillion barrels of non-conventional oil. "This will drive capital investment in the oilfield services industry, as producers require sophisticated technologies to explore reserves never before accessed," says the analyst of this research. "As a result, existing rigs will witness increased demand, augmenting day rates as oil companies seek to expand their global production."
However, most of these exploration activities and thereby, field services are largely dependent on oil prices, as customers invest in production activities based on the price volatility. While price erosion has led to a low-volume market with tight margins, the current economic slowdown and consequent credit crunch will further affect the oilfield services market by lowering the capital spending on new project exploration and market development. Key market participants have been adopting a wait-and-watch approach and are not expecting the government and regulatory bodies to help them tide over this challenging phase. Instead, they are strategically preparing for the rebound and subsequent market growth by investing in R&D and technology innovation.
Once field service companies have their services and technologies in place and the economy recovers, the market could experience a significant expansion, mainly due to increased energy demand. "Emerging markets such as China and India are projected to demand huge amounts of energy to sustain their economic growth," notes the analyst. "This is expected to drive oilfield service investments in exploration and production, thus raising the number of rigs in activity." The most promising regions for U.S. oil and gas equipment producers are those where oil production is expected to pick up in the short-to-medium term, namely west Africa, Russia, Libya, and Iraq.
Source: http://www.researchandmarkets.com/