Oilfield Equipment Rental Market Size, Share & Trends Estimation Report By Equipment (Drilling Equipment, Pressure & Flow Control Equipment, Fishing Equipment),By Application (Onshore, Offshore), By Region, And Segment Forecasts, 2023 - 2030
The global Oilfield Equipment Rental Market was valued at USD 20.55 Billion in 2022 and is projected to reach USD 27.82 Billion by 2030, growing at a CAGR of 3.87% from 2023 to 2030.
Oilfield Equipment Rental Market Overview:
In the last ten years, the business of renting oilfield equipment has grown by leaps and bounds. The oil and gas industry is one of the most profitable, if not the most profitable, in the world. This is because the demand for petroleum products is growing all over the world. This article will go into detail about what you need to know about this business, such as the types of equipment that can be rented, how they are used, and where they are used.
Oilfield equipment rental is the process of renting out all kinds of tools used for drilling, exploration, and production (E&P). It can be thought of as a way for onsite operations to handle times of high demand without making any long-term commitments.
Because technology is getting better, oil and gas exploration is becoming more natural. With the help of oilfield equipment, horizontal drilling, deep drilling, and the search for unconventional hydrocarbons could be done at a reasonable cost. Industry leaders are investing in drilling operations to look for oil and gas, which is an interesting move. All of the products and services that are part of the upstream energy industry are called oilfield equipment and services. It includes drilling, finishing the well, logging the well, fixing the well, and a lot more.
Most of the time, oil and gas companies hire an oilfield service contractor to do the drilling. Oilfield equipment not only helps set up oil and gas wells, but it also helps make, fix, and maintain the tools and equipment that are used to drill wells.
Driver: Technological advancements in oilfield equipment
Oil and gas companies have started to shift their exploration efforts to unconventional and deep hydrocarbon reservoirs like shale gas, coal bed methane (CBM), tight gas, and heavy oil. At the moment, the petroleum industry has high-tech IT-based machines and software that can work in a variety of unconventional and deep reservoir conditions. This makes it possible for new technology to be used to carry out hard tasks. For example, a high-tech Radio Frequency Identification (RFID) circulation sub helps make drilling and cleaning up holes easier. The RFID circulation sub makes it possible for operators to spend less time not working. Advanced drilling and completion technologies have made it possible to drill in shale formations without losing money. The old tools don't have everything they need to meet the new challenges. Shale oil and gas formations have been opened up by technologies like horizontal drilling and hydraulic fracturing. There has been a big rise in the number of oil rigs that drill horizontally.
Restraint: Customized demands by drillers
Exploring for new reserves and using up the ones that are already there have forced the use of new extraction methods and made drilling more complicated. The need for customised drilling equipment is driven by the growing number and complexity of well requirements needed to meet global production goals. In the next five years, a large number of high-quality rigs and other equipment will likely be delivered. Most of the new, high-tech rigs will likely be used to drill horizontally. All of this puts more pressure on the people who rent out equipment, since the number of well operators needed varies from well to well. The companies that rent out equipment have to keep a wide range of equipment in stock, which affects their economies of scale. The companies that sell oilfield equipment have to make changes to their stock all the time, which costs them more money. These things make it hard for the oilfield equipment rental market to grow.
Opportunity: Emerging offshore opportunities
Exploration, drilling, and production of oil and gas offshore have different technical and environmental needs than oil and gas activities on land. Even though it's hard to work offshore because of the harsh environment, advances in exploration and production technology have made it possible to work in places where there is a lot of ice, like the Grand Banks, the Bohai Sea, the Caspian Sea, Cook Inlet, and Sakhalin Island. In the past few years, drilling has slowed down because oil prices have gone down around the world. This has put more pressure on offshore drillers and service providers. But there should be more opportunities for offshore drillers as the industry tends to recover slowly. For example, at the end of 2017, Argentina's Ministry of Energy plans to hold an auction for between 6 and 10 offshore exploration blocks. While the Colombian government cut offshore gas royalties and lowered windfall profit fees to help offshore development in the country. Other activities, like ExxonMobil's plan to sell the Liza oil find in the Stabroek offshore block in Guyana and the growth of contracts for exploration and production of hydrocarbons in the deep-water offshore in Mexico, are likely to create new opportunities for offshore drilling.
Challenge: Success rate of exploration
Oil and gas companies have to do more exploration in hard-to-reach places like deep water, beneath salt and basalt, and in carbonate reservoirs because production from old oil fields is going down. Oil and gas exploration only works about 40% of the time, but with new marine-seismic technology, this number is sure to go up. It can cost up to USD 100 Million to drill a deep water well. Exploratory drilling costs a lot of money and doesn't always lead to commercial quantities or new building projects. Getting the cost of exploration down is a big problem for oil and gas companies. In a scenario where oil prices are low, there is less deep-water drilling and exploration because companies are putting more money into producing fields instead of new explorations. This means that there is less demand for rental oilfield equipment for deep-water explorations.
On the basis of Types, the market is segmented into Drilling Equipment, Pressure & Flow Control Equipment, and Fishing Equipment.
Drilling equipment is used to make or widen holes in the surface of the earth so that oil and gas can be found and taken out. Conventional, horizontal, directional, and offshore rigs are all different kinds of drilling rigs. You can rent drilling equipment for both short-term and long-term projects. To drill the wells, drilling tools are used. Drilling equipment is mostly made up of rigs, bits, casing, and tubing. To get oil and gas from underground reservoirs, you need drilling equipment.
Pressure & Flow Control Equipment:
The equipment is used to keep the pressure in oil and gas wells at a safe level. People also call these "downhole well control tools." During drilling operations, they keep the surface casing, tubing-casing annuli, and tubing-casing annuli safe and perform well. Pressure & Flow Control Equipment is the gear that controls the flow of fluids into or out of a well.
To catch fish, you need fishing gear. It has a lot of different tools, like hooks, lines, sinkers, floats, and baits. There are also nets, traps, and harpoons that some fishermen use. The most common piece of fishing gear is a fishing rod. They are long sticks with a reel that holds the line at one end.
On the basis of Application, the market is segmented into Onshore, and Offshore.
People rent a lot of onshore oilfield equipment to drill wells and get crude oil. It helps improve the rate of production by making the fluid flow better. When onshore oilfield equipment rental is used, it also has less of an effect on the environment during the drilling process.
Offshore, Global Oilfield Equipment Rental is used to drill wells and get oil and gas out of them. Offshore drilling is a way to look for oil and gas reserves under the ocean floor and get them out. The deep water is the main reason why offshore drilling rigs are used instead of onshore ones. When its time is up, the equipment that is used to make oil is taken away from the site. Oilfield rental services sell this equipment to other businesses that only need it for a short time. This lowers the cost of ownership and maintenance.
North America: Key market for the oilfield equipment rental market during the forecast period
The oilfield equipment rental market is expected to be led by North America, which is producing more unconventional hydrocarbons than any other region. Due to the rise in oil production from both shale operations and deep-water exploration and production in the Gulf of Mexico, this area is now the new swing producer in the global oil market. Exploration and production in the area should also pick up speed as big oil companies spend more money on capital projects. All of these things are likely to drive the oilfield equipment rental market in North America.
|Units||Value (USD Billion)
|Growth Rate||CAGR of 3.87% from 2023 to 2030|
|Reasons to Purchase this Report||
The reports cover important changes in the market for renting oilfield equipment, as well as both organic and inorganic ways to grow. Several companies are focusing on organic growth strategies like launching new products, getting approval for new products, and holding events and patenting new ideas. Acquisitions and partnerships and collaborations were examples of non-organic growth strategies seen in the market. These things have made it possible for market players to grow their business and customer base. With the rising demand for oilfield equipment rental in the global market, market players in the oilfield equipment rental market are likely to have good growth opportunities in the future. Here is a list of a few companies that rent oilfield equipment.
The report also has profiles of some of the most important companies are Halliburton Company (US), Schlumberger Limited (US), Weatherford International, PLC (Switzerland), Superior Energy Services, Inc. (US), Oil States International, Inc. (US), and Parker Drilling Company (US)
- In May 2016, Parker Drilling Company got a contract to run and fix up three rigs that belonged to customers as part of the Sakhalin-1 Project.
- In April 2016, Schlumberger acquired coiled tubing drilling and coiled tubing units. This will strengthen its coiled tubing portfolio in markets of U.S. and Saudi Arabia.
- In February 2016, Oil States Industries, Inc. opened a plant in the U.K. The 240,000-square-foot building is used for engineering, project management, sales, and administrative tasks.
- In July 2019, i3 Energy plc gave Baker Hughes, a GE Company (BHGE), a contract for its drilling work at Liberator. Under the terms of the contract, BHGE has to provide directional drilling, drilling fluids, mudlogging, formation evaluation operations, and a wellhead.
- Drilling Equipment
- Pressure & Flow Control Equipment
- Fishing Equipment
- Other Equipment
- Halliburton Company (US)
- Schlumberger Limited (US)
- Weatherford InternationalPLC (Switzerland)
- Superior Energy ServicesInc. (US)
- Oil States InternationalInc. (US)
- Parker Drilling Company (US)