Market Overview
The Global Well Casing & Cementing Market report analyzes the market shares, size, recent trends, future market outlook, and competitive intelligence. The demand for good casing and cementing is increasing due to the growth in the oil and gas industry and the need for efficient good operations. The market is witnessing a surge in demand from the Asia-Pacific region. The competitive rivalry intensifies with major players such as Schlumberger Limited, Halliburton Company, Baker Hughes, GE Company (BHGE) and others actively operating in the market.
Casing is a pipe used to line the drilled hole and is usually greater in diameter and length than drill pipe. Casing operations occur at several points during the drilling process, beginning with the surface casing and intermediate casing and concluding with the production string installed after the well is completed.
The casing is held using cement, preventing fluid migration between underlying strata. Primary cementing and remedial cementing are the two basic categories of cementing activities. Primary cementing has the goal of providing zonal isolation. Cementing combines cement, cement additives, and water in a slurry and pumps it down through the casing to key places in the annulus around the casing or in the open hole beneath the casing string. Remedial cementing is typically used to address issues that arise during the primary cementing process. The most effective and cost-effective way to avoid remedial cementing is to meticulously plan, develop, and execute all drilling, including primary cementing and completion activities.
Market Scope
| Metrics | Details |
| Market CAGR | High |
| Segments Covered | By Type, By Operation, By Application, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Market Dynamics
The demand for well casing & cementing is mainly driven by the increasing global demand for oil and gas. The environmental impact of good casing and cementing is a key challenge in limiting this market's growth.
Increasing global demand for oil and gas
Due to rapid economic growth and industrialization, global demand for oil and gas increases daily. Modern society's core energy sources are oil and gas. The transportation sector and power production both employ refined petroleum products as fuel.
Natural gas is utilized in various industrial and commercial applications, including metal processing, power generation, and heating. Despite the introduction and rapid progress in the adoption of renewable energy, oil, and gas have a near-total dominance in the short and medium term. The increasing global demand for oil and gas leads to the exploitation of new oil fields and natural gas fields to keep up with rising demand. Oil and gas are the largest end-user for good casing & cementing. It will drive the growth of the global well casing & cementing market.
Environmental Impact of well casing & cementing
Well, casing and cementing are crucial processes in oil and gas exploration. However, the entire process is very destructive and leads to various environmental problems. The ground is injected with chemicals under high pressure to soften up the ground layers beneath. Cementing occurs after completing the casting process, with cement injection under pressure to stabilize the structure. The entire process causes the degradation of rock layers and chemicals and cement injected into the ground may seep into the groundwater. Improper execution of the process can cause the ground to cave in, leading to loss of life and property. Due to the large-scale environmental impact, the operation has been outlawed in various jurisdictions and strict legislation is being enacted to curb its use. The environmental impact of the well casing and cementing process is a key challenge for the market's growth.
COVID-19 impact on Market
The global well casing & cementing market experienced uneven impacts on revenue streams in 2020 due to the COVID-19 pandemic. The government-imposed lockdowns and movement restrictions affected well-casing and cementing services. Oil production from unconventional sources increased due to a massive crash in oil prices in 2020.
The research and development of new good casing & cementing technologies were impacted due to the pandemic since government lockdown and restrictions led to the curtailment of on-field activities. Therefore, the commercial deployment of new technologies was delayed and financing of new projects was curtailed, impacting the sectoral revenues of various oilfield services companies operating in the good casing & cementing sector.
The short-term impact of the COVID-19 pandemic has been relatively severe for the well casing & cementing market. The pandemic and the associated economic uncertainty have caused companies to cut back on capital expenditure and investments to explore and exploit new oil and gas fields. As the effects of the pandemic gradually wear away, demand for good casing & cementing technologies will increase and is expected to grow gradually in the coming years.
Market Segmentation Analysis
The good casing & cementing market is segmented into type, operation, well, application, and region. The good casing & cementing market is further segmented into casing and cementing based on type.
The casing equipment is primarily utilized to sustain the well since the raw side of the well would collapse without it. Conductor casing, surface casing, intermediate casing, production casing, and liner are some of the numerous types of casings. The casing services are utilized under the well's characteristics. The casing is a costly technique because it is done on numerous layers. As a result, the casing has a higher share of the type segmentation in the good casing and cementing market.
Market Geographical Share
North America dominates the good casing and cementing market globally. The United States, Canada, and the Gulf of Mexico account for the biggest market share, owing to a huge number of unconventional oil sources such as sandy tar pits and a massive increase in fracking oil exploration in the United States, Canada, and the Gulf of Mexico.
In the United States, sucker-rod pumps raise about 350,000 wells. Approximately 80% of all oil wells in the United States are stripper wells with a water cut that produce less than 10 barrels per day. The vast majority of these stripper wells are elevated using sucker-rod pumps. Some of the largest offshore shallow oil reserves in the Gulf of Mexico require well casing and cementing technology to extract.
North America is home to several prominent engineering firms that provide oil well servicing, casing, and cementing technology. The biggest corporations are Schlumberger Limited, Halliburton, Baker Hughes Company, and Weatherford International. Companies operating in the North American region have led the way in oilfield services research, development, and innovation. The North American area is likely to retain the greatest share of the global well casing and cementing market due to oil extraction's difficult and unconventional nature.
Market Competitive Landscape
The global well casing & cementing market is competitive due to the availability of a wide variety of well casing & cementing services that cater to different types of client requirements. Some of the major players contributing to the growth in the segment are Schlumberger Limited, Halliburton, Baker Hughes Company, Weatherford, NOV Inc., Tenaris, Vallourec, TMK Group, and Tristan Nabors Industries Ltd. The significant players adopt several growth strategies such as new product launches, joint ventures, and collaborations, contributing to global growth in the industry.
Schlumberger Limited
Overview: Schlumberger Ltd is a multinational engineering services company specializing in designing and manufacturing energy equipment and services. The company’s business is segmented into drilling, well construction, production systems, digital automation, and energy consulting. The company supplies its products and services to a comprehensive range of global oil and gas companies, including Exxon Mobil Corporation, BP PLC, Royal Dutch Shell N.V., and TotalEnergies. The company’s facilities are located in more than 50 countries globally. Schlumberger Limited was founded by brothers Marcel and Conrad Schlumberger in 1926 and is headquartered in Houston, Texas, U.S.
Product Portfolio
- Schlumberger Limited has an entire range of oil well casing and cementing services. Schlumberger Limited carries out casing repair and guiding. The company carries out surveying, cementing solutions, evaluations, mud removal, and well-decommissioning cementing.
Key Developments
In 2020, Schlumberger Limited added new software controls to their cementing operations. The software usage is to help in the optimization of the cementing process. It is expected that software integration will increase the efficiency of oil well casing and cementing operations while reducing overall energy usage.
