A current plus for the Oil and Gas Industry is that The Global Oilfield Equipment Market is expected to witness moderate growth during the 2013-2018 period due to the increasing demand for oil and gas across the globe.
Many oil companies across the globe are investing a huge amount of funds in R&D activities to help develop better technology to reduce the environmental impact of this activity on the marine ecosystem. This in turn is expected to propel the growth of the market at a CAGR of 4.1 percent from 2013-2018.
TechNavio analysts have identified 3 key factors currently driving the Global Oilfield Equipment Market:
1. Increasing Oil and Gas Drilling Activities
Due to the high demand for oil and gas around the globe and maturing existing hydrocarbon resources, the focus has shifted towards unexplored reservoirs in order to keep pace with the growing demand.
By tapping these unexplored resources, the production levels can be significantly increased, which can bridge the gap between demand and supply.
2. Increasing Exploration of Unconventional Gas Resources
In recent years, the depleting conventional gas sources have resulted in a shift from conventional gas to unconventional sources. This in turn can lead to several challenges in the demand for natural gas across the globe.
By shifting focus towards unconventional gas sources, the Oil and Gas Industry can reduce the dependency on conventional gas sources as well as reduce its carbon footprint. The extraction of unconventional gas requires horizontal drilling, which requires different equipment and technology for the extraction of gas from the reservoir.
3. Rapid Technological Advancements
There has been a tremendous increase in technological advancements, which has led to the increasing usage of oilfield equipment in the market. The technological advancements resulted in the adoption of different types of drilling for oil and gas extraction such as horizontal and directional drilling. This in turn has resulted in the increased usage of various types of drilling equipment.
Moreover, oil companies are increasing their investments in R&D to increase the efficiency of this equipment in order to improve the volume of oil and gas production and reduce the environmental impact. Therefore, the rapid technological advancements are expected to propel the growth of the market during the forecast period.
