Oil and Gas Industry Overview

The base oil market consists of sales of base oil by entities (organizations, sole traders, and partnerships) that are produced from refining crude oil or synthetic material. It is the most commonly used lubricating oil. Base oil is classified as hydrocarbons with 18 to 40 carbon atoms that have a boiling point between 550 and 1050 F. The various products such as lubricating oils, motor oil, metal processing fluids, and others are manufactured with the help of base oils.

The main types of base oil are mineral, synthetic, and bio-based. The mineral oil is produced from a highly refined variant of ground-based oil. Mineral oils are widely utilized by classic and vintage automobile owners, in part as synthetic oils have a lower viscosity, which enhances the risk of leaks in older engines. The different groups include Group I, Group II, Group III, Group IV, Group V and is used in automotive oil, industrial oil, metalworking fluid, greases, hydraulic oil, and others.

The global base oil market is expected to grow from $27.39 billion in 2020 to $27.95 billion in 2021 at a compound annual growth rate (CAGR) of 2.1%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The base oil market is expected to reach $36.64 billion in 2025 at a CAGR of 7%.

The growing automotive industry is expected to fuel the growth of the base oil market in the coming years. Advanced engine technology is driving the demand for motor oils and lubricating greases that gives compatibility to fast-moving parts and high temperatures. Moreover, engine oils that retain their viscosity, reduce engine wear to a minimum, and help assure dependability are made using high-quality base oil and best-in-class additive technology. Automotive base oil is a fluid for internal combustion engines that power automobiles, motorbikes, lawnmowers, generators, and a variety of other machinery. According to the Economist Intelligence Unit (The EIU), in 2021, the global automotive sector is expected to grow by double digits, with new car sales increasing by 15% and commercial vehicle sales increasing by 16%. Electric vehicle sales are expected to increase from 2.5 million in 2020 to 3.4 million in 2021.

The launch of renewable base oil is gaining significant popularity in the base oil market. Major companies operating in the base oil sector are focused on developing innovative and eco-friendly solutions for base oils to strengthen their position in the industry. For instance, in August 2020, Chevron Products Company, a subsidiary of Novvi LLC and Chevron U.S.A. Inc., revealed the production of the first 100% renewable base oil based on ISODEWAXING technology from Novvi's Deer Park, Houston facility. The innovative manufacturing process and molecules are projected to outperform conventional and synthetic base oils, with the added benefit of being made from renewable feedstocks.

In October 2019, Repsol, a Spanish energy and petrochemical company based in Madrid acquired a 40% stake in United Oil Company for an undisclosed amount. This acquisition will allow Repsol to increase its presence in Southeast Asia, one of the world’s largest and fastest-growing lubricants markets with sales of 3 million metric tons per year and an annual growth rate of 4%. United Oil Company is a Singapore-based lubricant manufacturer that produces high-quality, well-engineered lubricant products and has base oil storage capacities of nearly 6 million liters.

Major players in the base oil market are Chevron Corporation, Exxon Mobil Corporation, Royal Dutch Shell Plc., Ergon Inc., Neste Oyj, Nynas AB, S-OIL CORPORATION, Sepahan Oil, Repsol S.A., Sinopec Limited, BP PLC, Evonik Industries AG, H&R Group, Saudi Aramco, and SK Lubricants Co. Ltd.

Asia Pacific was the largest region in the base oil market in 2020. North America was the second-largest region in the base oil market. The regions covered in the base oil market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The countries covered in the base oil market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The global base oil market is segmented -

1) By Type: Mineral, Synthetic, Bio-Based

2) By Group: Group I, Group II, Group III, Group IV, Group V

3) By Application: Automotive Oil, Industrial Oil, Metalworking Fluid, Greases, Hydraulic Oil, Others

The hydraulic workover unit market consists of sales of hydraulic workover unit services by entities (organizations, sole traders, and partnerships) that utilize versatile, cost-saving, and safe techniques for the repair and maintenance of all types of wells. Hydraulic workover is a well intervention technique used for installing or removing tubes (pipes) in and out of dead wells (the well with zero surface pressure). Hydraulic cylinders enable precise control of tubular movements and reduce the need for a huge mast structure found on traditional drilling rigs.

The main services in the hydraulic workover unit are workover and snubbing. The snubbing services are used to install or eliminate tubular from a well while the well is pressurized. Snubbing has the advantage of allowing work to be done without dying the well, which eliminates reservoir formation damage and costly stimulation procedures. The various installation types include skid mounted, trailer mounted and has a capacity in different ranges such as 0-50 tonnes, 51-150 tonnes, above 150 tonnes. Hydraulic workover unit is used for onshore and offshore applications.

The global hydraulic workover unit market is expected to grow from $8.13 billion in 2020 to $8.65 billion in 2021 at a compound annual growth rate (CAGR) of 6.5%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The hydraulic workover unit market is expected to reach $11.69 billion in 2025 at a CAGR of 7.8%.

The increasing shale gas production is projected to propel the growth of the hydraulic workover unit market in the coming years. Shale gas is natural gas generated from a type of sedimentary rock called shale that is formed from clastic origins such as sedimentary rock or siltstone. The most adaptable technology available in the upstream oil and gas industry is the snubbing unit, which is a type of hydraulic workover unit. According to the United States Energy Information Administration, shale gas production in the USA is expected to increase from 27.90 trillion cubic feet in 2021 to 32.50 trillion cubic feet by 2025. Therefore, the increasing shale gas production drives the growth of the hydraulic workover unit market.

The introduction of multiphase projects is a key trend gaining popularity in the hydraulic workover unit market. Major players operating in the hydraulic workover unit sector are launching multiphase projects in collaboration with technology players to set a new offshore snubbing unit or hydraulic workover world record. For instance, in September 2020, SBS Energy Services (SBS), a US-based provider of snubbing, hydraulic workover services entered into a strategic partnership with Helix Solutions to complete a multi-phase project that deactivates roughly 29,000 feet of 10 inches by 6 inches insulated pipeline in the Gulf of Mexico.

In April 2019, High Arctic Energy Services Inc., a Canada-based drilling oil and gas wells company acquired assets of snubbing services equipment from Precision Drilling for $8.5 million. The acquisition provides the High Arctic with additional quality snubbing equipment and access to experienced personnel and crews. Precision Drilling is a Canada-based drilling rig contractor involved in offering snubbing services, oil field rental, and supplies.

Major players in the hydraulic workover unit market are Archer limited, Basic Energy Services, Inc., Canadian Energy Equipment Manufacturing FZE, Cudd Energy Services, Easternwell Group, Elnusa, Halliburton Company, High Arctic Energy Services Inc, Key Energy Services, LLC, NOV Inc., Precision Drilling Corporation, Superior Energy Services, Inc., Uzma Berhad, Velesto Energy Berhad, and ZYT Petroleum Equipment Co Ltd.

North America was the largest region in the hydraulic workover unit market in 2020. The regions covered in the hydraulic workover unit market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The countries covered in the hydraulic workover unit market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The global hydraulic workover unit market is segmented -

1) By Service: Workover, Snubbing

2) By Installation: Skid Mounted, Trailer Mounted

3) By Capacity: 0-50 tonnes, 51-150 tonnes, Above 150 tonnes

4) By Application: Onshore, Offshore

The shale gas market consists of sales of shale gas by entities (organizations, sole traders and partnerships) that carry out the exploration, development and production of shale gas by using pumping technologies and systems. Shale gas is trapped within shale formations.

The main types of technologies used to extract shale gas are exploration and drilling and fracturing fluid. Shale gas has its applications in power generation, industrial, residential, commercial and transportation sectors.

The global shale gas market is expected to grow from $55.58 billion in 2020 to $61.51 billion in 2021 at a compound annual growth rate (CAGR) of 10.67%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The global shale gas market is expected to reach $99.99 billion in 2025 at a CAGR of 12.92%.

The rapid pace of advancements in shale gas exploration and drilling technologies is boosting production volumes and reducing production costs and thereby contributing to the growth of the market. Technological advances are allowing companies to enhance shale gas recovery rates and considerably reduce production costs. For instance, 3D seismic technology is being used to optimize exploration and drilling processes to enhance natural gas production levels and cut down costs associated with exploration, drilling and refining. Other areas of rapid technological advances in the crude oil and gas market include hydraulic fracturing and horizontal drilling. Thus, advancements and innovation in exploration and drilling technologies are expected to drive the shale gas market.

Modular production systems in the gas industry are becoming popular as they are cost-effective, can extract gas within a short period and are more profitable than conventional methods. A modular system is an integrated field facility with prefabricated equipment, piping, instrumentation and others installed between the well and the pipeline for gas processing applications. This system helps in shortening the project timeline, providing cost-effective fabrication, better quality and improved safety. For instance, PROPAK, a Canada-based company that specializes in gas production packages using modularized processing plants. SIIRTEC NIGI, an Italy-based engineering and contracting company, utilizes the design and supply of skid-mounted and modular packages for gas processing, Sulphur recovery and others. Honeywell UOP, a company creating modular systems for shale gas retrieval states that modular systems can be ready for the startup in around 10 months whereas conventional stick-built, permanent wells, require 21 months to be startup-ready.

In October 2020, Noble Energy, Inc., an oil and natural gas exploration and production firm, was acquired by Chevron Corporation for a disclosed amount. The Noble Energy, Inc. acquisition would provide Chevron Corporation with low-cost, proven reserves and desirable undeveloped oil and natural gas resources. Furthermore, it will improve the role of Chevron in the Eastern Mediterranean region and the U.S.

Major players in the shale gas market are Royal Dutch Shell PLC, Exxon Mobil Corporation, PetroChina Company Limited, ConocoPhillips, Chevron Corporation, Antero Resources, Anadarko Petroleum Corporation, Baker Hughes Incorporation, Statoil, Equinor ASA, Repsol SA, SINOPEC/Shs, Range Resources, Pioneer Natural Resources, Reliance Industries Limited, SM Energy, EQT Corporation, and Cabot Oil & Gas.

The regions covered in the shale gas market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the shale gas market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The global shale gas market is segmented -

1) By Technology: Exploration & Drilling, Fracturing Fluid

2) By Application: Power Generation, Industrial, Residential, Commercial, Transportation

The asphalt, lubricating oil and grease market consists of sales of asphalt, lubricating oil and grease by entities (organizations, sole traders or partnerships) that produce block asphalt, asphalt paving mixture, asphalt shingle, coating materials, petroleum lubricating oil and grease. Asphalt is a sticky, black and highly viscous liquid or semi-solid form of petroleum used for surfacing roads, flooring, and roofing. The asphalt, lubricating oil and grease market is segmented into asphalt and other petroleum products.

The global asphalt, lubricating oil and grease market is expected to grow from $254.02 billion in 2020 to $308.13 billion in 2021 at a compound annual growth rate (CAGR) of 21.3%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $437.25 billion in 2025 at a CAGR of 9%.

North America was the largest region in the global asphalt, lubricating oil and grease market, accounting for 37% of the market in 2020. Asia Pacific was the second largest region, accounting for 25% of the global asphalt, lubricating oil and grease market. Africa was the smallest region in the global asphalt, lubricating oil and grease market.

Producers of petroleum-based lubricants are offering bio-based lubricants to address the concerns associated with the impact of lubricants on the environment. Bio-based lubricants are formulated with renewable or biodegradable materials. Vegetable oils are one of the major components for bio-based lubricants. Vegetable oils offer high lubricity, viscosity and thermal stability. They have a higher flash point of 326°C as compared to flash point of 200°C for mineral oils. Lubricants produced from vegetable oils include tractor transmission hydraulic fluid, industrial hydraulic fluids for process and machinery applications, food-grade hydraulic fluids and greases, greases for use in automotive, railroad and machinery applications, chainsaw bar oil, gear lubes, compressor oil, and transformer and transmission line cooling fluids.

The demand for multi grade lubricants is gaining traction due to their better performance in cold climatic conditions. Multi-grade lubricant is a viscosity modifier used in engines which allows the smooth flow of oil under cold and hot climatic conditions. It is used to minimize the effect of change of viscosity with respect to the changes in the surrounding temperature and maintains optimum viscosity over the engine operating temperature range. Some of the major companies producing this lubricant include Gazprom, Rosneft, Exxonmobil, Petrochina and BP.

Most of the asphalt companies are using frequency inverters in asphalt mixing process to control asphalt mixture drying time. Frequency inverter is an electronic device which transforms an AC current with fixed frequency to variable amplitude and frequency. It is used to vary the speed of rotation of the drying drum of the plant drying system so that the aggregates which are more porous receive heat from the burning flame for more time resulting in complete drying. It improves the drying process and allows the less porous asphalt to dry faster resulting in increased production. For instance, some of the major companies using frequency inverters include 3 Franks Services, A. Macchione Brothers, Absolute Asphalt and Concreter LLC and Ace Asphalt.

The major players covered in the global asphalt, lubricating oil and grease market are Royal Dutch Shell, BP PLC, Gazprom Neft, CRH Plc, Owens Corning Sales LLC.

The countries covered in the global asphalt, lubricating oil and grease market are Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela, Vietnam.

The regions covered in the global asphalt, lubricating oil and grease market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The global asphalt, lubricating oil and grease market is segmented -

1) By Type: Asphalt, Other Petroleum Products

2) By End Use Industries: Power Generation, Transport, Metallurgy & Metalworking, Food & Beverage, Chemical, Others

Subsegments Covered: Asphalt Paving Mixtures And Blocks, Prepared Asphalt And Tar Roofing And Siding Products, Roofing Asphalts And Pitches, Coatings And Cements

The oil and gas market consists of sales of oil and gas by entities (organizations, sole traders or partnerships) that undertake the exploration for, extraction, drilling, and refining, of oil and gas and some of its derivatives. This market does not include petrochemicals. The oil and gas market is segmented into oil & gas upstream activities and oil downstream products.

The global oil and gas market is expected to grow from $4677.45 billion in 2020 to $5870.13 billion in 2021 at a compound annual growth rate (CAGR) of 25.5%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The oil and gas market is expected to reach $7425.02 billion in 2025 at a CAGR of 6%.

Asia Pacific was the largest region in the global oil and gas market, accounting for 33% of the market in 2020. North America was the second largest region accounting for 19% of the global market. South America was the smallest region in the global oil and gas market.

Low interest rates in most developed countries positively impacted the oil and gas industry during the historic period. For instance, in 2019, the European Central Bank decreased interest rates to -0.5% on deposits from banks to encourage lending. This created a flow of cheap money for investment, both in developed and developing economies. It also encouraged borrowing and discouraged saving in advanced markets, helping to drive spending. Oil and gas companies were able to borrow more money for process improvements and expansion projects, thus driving the market during this period.

Oil price volatility is likely to have a negative impact on the market as significant decline and increase in oil prices negatively impacts the government and consumer spending. The decline in oil prices is having a negative impact on government spending in countries such as Saudi Arabia, Nigeria and the UAE (United Arab Emirates) which are largely dependent on revenues generated through crude oil exports; whereas significant increase in oil prices had resulted in rising inflation, current account deficit and fiscal deficit in countries such as India and China, which predominantly import oil. For instance, the Saudi government is expected to cut down its spending from 1.05 trillion riyals ($280 billion) in 2019 to 1.02 trillion riyals ($270 billion) in 2020, to 955 billion riyals ($255 billion) by 2022, due to significant decline in revenues generated from oil exports, thereby affecting the market. This high volatility in oil prices is expected to negatively impact the market going forward.

Major companies in the oil and gas industry are looking into big data analytics and artificial intelligence (AI) to enhance decisions making abilities and thus drive profits. The companies in this industry gather huge amounts of raw data relating to the working of refineries, pipelines and other infrastructure through a large number of sensors placed across the oil rig. Using big data analytics the companies can detect patterns which can allow them to quickly react to unwanted changes or potential defects, thus saving costs. AI allows the companies to take better drilling and operational decisions. Companies such as ExxonMobil and Shell have been increasingly investing in AI technology to have a centralized method of data management and support data integration across multiple applications . Other companies such as Sinopec, a Chinese chemical and petroleum corporation, has announced its decision to construct 10 intelligent centers to help in reducing operation costs by 20%.

Major companies in the market include Saudi Aramco; Exxon Mobil Corporation; Royal Dutch Shell; BP Plc; Sinopec Limited.

The countries covered in the global oil and gas market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The regions covered in the global oil and gas market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The global oil and gas market is segmented -

1) By Type: Oil & Gas Upstream Activities, Oil Downstream Products

Subsegments Covered: Crude Oil, Natural Gas, Oil And Gas Wells Drilling Services, Oil And Gas Supporting Activities, Refined Petroleum Products, Asphalt, Lubricating Oil And Grease

The oil and gas upstream activities market consists of sales of crude oil and natural gas by entities (organizations, sole traders or partnerships) that undertake the pre-refining activities of crude oil and natural gas production. The oil and gas upstream activities market is segmented into crude oil; natural gas; oil and gas wells drilling services and oil and gas supporting activities.

The global oil & gas upstream activities market is expected to grow from $2635.45 billion in 2020 to $3335.52 billion in 2021 at a compound annual growth rate (CAGR) of 26.6%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The oil and gas upstream activities market is expected to reach $4243.14 billion in 2025 at a CAGR of 6%.

Asia Pacific was the largest region in the global oil & gas upstream activities market, accounting for 35% of the market in 2020. North America was the second largest region accounting for 20% of the global market. Africa was the smallest region in the global oil & gas upstream activities market.

Oil and gas extraction companies around the world are investing heavily in digital oilfield technology to enhance oil and gas production. Digital oil fields integrate advanced software, hardware, and data analysis techniques to collect real-time data from the oilfield. They consist of visualization, product surveillance, integrated decision making, and remote communication systems. Digital technologies in oil fields include high-performance drill bits, advanced electrical submersible pumps, and 3D seismic imaging and reservoir modelling. Oilfields digitization facilitates efficient utilization of human resources and thus optimizes the profitability of oil production. This technology is changing the competitive landscape with a fact that an increase in production efficiency by ten percentage points can yield an impact of $220 million to $260 million on the bottom-line. According to IHS CERA, digital oilfield implementation leads to increase in oil production by 2 to 8%and reduction in operating expense by 5 to 25% . For Instance, some of the major companies investing in digital oilfields include Noble Corp, Statoil and Apache Corp.

Oil and gas well drilling companies are adopting 3D visualization systems to reduce project cycle times and increase drilling accuracy.3D visualization system generates a 3D model of a wellbore and real-time drilling data to monitor and optimize drilling process. This system facilitates automatic diagnosis of drilling problems and improves and streamlines collaboration by allowing geoscientists and drilling engineers to virtually locate, see, and test drilling sites, resulting in significant cost savings of up to20% and reduction in non-productive drilling time by 20%. These systems are integrated with asset teams by means of software, thus facilitating precise and accurate placement of drill sites. For Instance, some of the major companies offering 3D visualization technology companies include eDrilling, Hexagon, Mechdyne and Landmark.

Oil and Gas Wells Drilling Service providers are using seismic technology to map and interpret potential hydrocarbon reserves. 4d seismic technology is used to track the change in the physical properties of the reservoir rocks which are caused due to changes in reservoir pressure, temperature and fluid saturation. It tracks these changes by repeating 3D seismic surveys over time-to-time to create a time-lapse or 4D seismic image. These technology works as a tool to minimize drilling risk and maximize the return on investment . For Instance, some of the major companies using this technology include Statoil, NTNU, and Chevron.

Major companies in the market include Saudi Aramco; Rosneft; Kuwait Petroleum Corporation; ADNOC; Iraq Ministry of Oil.

The countries covered in the global oil & gas upstream activities market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The regions covered in the global oil & gas upstream activities market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The global oil & gas upstream activities market is segmented -

1) By Type: Crude Oil, Natural Gas, Oil And Gas Wells Drilling Services, Oil And Gas Supporting Activities

Subsegments Covered: Onshore Drilling Services, Offshore Drilling Services, Well Maintenance, Exploration, Well Developing

The oil and gas wells drilling services market consists of sales of oil and gas wells drilling services by entities (organizations, sole traders or partnerships) that undertake oil and gas wells drilling services for others on a contract or fee basis. The oil and gas wells drilling services industry includes contractors specializing in spudding in, drilling in, redrilling, and directional drilling. This market covers outsourced drilling services sold on a contract basis to oil and gas extraction companies and does not include any in-house drilling services of oil and gas extraction companies. The oil and gas wells drilling services market is segmented into onshore drilling services and offshore drilling services.

The global oil and gas wells drilling services market is expected to grow from $146.57 billion in 2020 to $183.9 billion in 2021 at a compound annual growth rate (CAGR) of 25.5%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $227.77 billion in 2025 at a CAGR of 5%.

North America was the largest region in the global oil and gas wells drilling services market, accounting for 29% of the market in 2020. Middle East was the second largest region accounting for 16% of the global market. Western Europe was the smallest region in the global oil and gas wells drilling services market.

The rapid pace of innovation in the oil and gas exploration and drilling technologies is boosting production volumes and reducing production costs. Technological advances are allowing oil and gas wells drilling companies to enhance oil and gas recovery rates and considerably reduce production costs. For instance, 3D seismic technology is being used to optimize exploration and drilling processes to enhance oil and gas production levels and cut down costs associated with exploration and drilling. Other areas of rapid technological advances in the oil and gas market include hydraulic fracturing and horizontal drilling. Thus, advancements and innovation in exploration and drilling technologies are expected to drive the oil and gas wells drilling services market during the forecast period.

The outbreak of the Coronavirus disease (COVID-19) has acted as a massive restraint on the oil and gas wells drilling services market in 2020 as fears over COVID-19 resulted in lower oil prices, exasperated by a price war when the members of the OPEC cartel were unable to agree on production cuts in February 2020, resulting in a decline in the dollar price of WTI Crude per barrel falling from around $50 to around $25. COVID 19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China and spread globally including Western Europe, North America and Asia. Steps by national governments to contain the transmission have resulted in a decline in economic activity with countries entering a state of lockdown and the outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the oil and gas wells drilling services market will recover from the shock across the forecast period as it is a 'black swan' event and not related to ongoing or fundamental weaknesses in the market or the global economy. In addition, current oil prices are uneconomic for many operators and are likely to result in lower supply in the medium term, as operators cut activity or cease trading, resulting in an upturn in prices.

Oil and gas wells drilling companies are adopting 3D visualization systems to reduce project cycle times and increase drilling accuracy. 3D visualization system generates a 3D model of a wellbore and real-time drilling data to monitor and optimize drilling process. This system facilitates automatic diagnosis of drilling problems and improves and streamlines collaboration by allowing geoscientists and drilling engineers to virtually locate, see, and test drilling sites, resulting in significant cost savings of up to 20% and reduction in non-productive drilling time by 20%. These systems are integrated with asset teams by means of software, thus facilitating precise and accurate placement of drill sites. Some of the major companies offering 3D visualization technology companies include eDrilling, Hexagon, Mechdyne, Landmark.

The countries covered in the global oil and gas wells drilling services market are Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela, Vietnam.

The regions covered in the global oil and gas wells drilling services market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The major players covered in the global oil and gas wells drilling services market are Schlumberger Ltd, Halliburton, Transocean Ltd, Weatherford International plc, Baker Hughes Incorporated.

The global oil and gas wells drilling services market is segmented -

1) By Type: Onshore Drilling Services, Offshore Drilling Services

The oil and gas supporting activities market consists of sales of support activities for oil and gas operations by entities (organizations, sole traders or partnerships) that provide support activities on a contract or fee basis for oil and gas operations such as exploration, drilling and extraction. The oil and gas supporting activities market is segmented into well maintenance; exploration and well developing.

The global oil and gas supporting activities market is expected to grow from $234.03 billion in 2020 to $273.96 billion in 2021 at a compound annual growth rate (CAGR) of 17.1%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $332.14 billion in 2025 at a CAGR of 5%.

North America was the largest region in the global oil and gas supporting activities market, accounting for 29% of the market in 2020. Middle East was the second largest region accounting for 16% of the global market. Western Europe was the smallest region in the global oil and gas supporting activities market.

The oil and gas supporting activities market was mainly driven by rapid growth in emerging markets in the historic period. Emerging markets growth was aided by rising disposable income, stable political environment and increasing foreign investments in these countries. For instance, according to the IMF, China’s GDP grew from $11 trillion in 2015 to $13.6 trillion in 2018. Additionally, according to the World Economic Outlook Reports by the IMF, emerging markets and developing economies together registered a growth of 4.0% in 2015 and this increased to 4.5% in 2018. Thus, strong economic growth boosted the demand for oil and gas, and this drove the oil and gas supporting activities market during the historic period.

Growing popularity of renewable energy sources was a major restraint on the oil and gas supporting activities market during the historic period. The removal of fuel subsidies by governments and the drop in renewable energy technology and infrastructure costs meant the cost of power generated through solar and wind energy became comparable to the cost of power generated through fossil fuels. Certainty in capital costs and absence of material costs is favorable to renewable energy projects when compared to petrochemical based projects where project ROI (Return on Investment) is dependent on raw material costs, thus affecting the growth of the market.

Companies providing support activities for oil and gas operations are using rig-less technology to reduce turnaround time for decommissioning of wells. Rig-less P&A refers to decommissioning of oil wells wherein companies need not replace tubes and drill pipes while placing primary or secondary barriers, thus offering significant cost savings over rig-based operations. Also, the equipment used for rig-less P&A can also be operated at a water depth of 1600 feet. Some of the major companies using rig-less technology include Baker Hughes, Halliburton, Oceaneering International, Schlumberger and Weatherford.

The countries covered in the global oil and gas supporting activities market are Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela, Vietnam.

The regions covered in the global oil and gas supporting activities market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The major players covered in the global oil and gas supporting activities market are Halliburton, Saipem S p A, Schlumberger Ltd, Baker Hughes Incorporated, Weatherford International plc.

The global oil and gas supporting activities market is segmented -

1) By Type: Well Maintenance, Exploration, Well Developing

2) By Drilling Type: Offshore, Onshore