Well Testing Services Market Research, 2031
The global well testing services market size was valued at $6.3 billion in 2021, and well testing services industry is projected to reach $11.1 billion by 2031, growing at a CAGR of 5.9% from 2022 to 2031.
Well testing service is the testing service which provides information about well, such as identifying reservoir capacity to produce hydrocarbons, natural gas, and oils. The increase in demand for energy across the globe has led to surge in drilling activities that boosting the growth of well testing services market. Furthermore, the utilization of these testing services will optimize the well production and improve the accuracy of oil production. It is also an essential part of the well lifecycle and it is used to understand the reservoir characteristics and fluid properties. Furthermore, it is used at every phase of the well development, exploration, and production.
The rise in the demand for the petroleum products due to surge in the urbanization have led to the exploration of oil wells in onshore and offshore areas. The need for drilling tools and experienced personal for drilling the reservoir is a major factor driving the demand for the market. The presence of deterioration of reservoir, production tubing, gas injection line and flowline led to the demand for well testing services. The presence of accumulation of sand at the bottom of the well can cause a serious problem because it can block the perforations, causing the liquid production to decrease or stop. The surge in industrialization and development of transportation infrastructure has led to increase in the demand for the fossil fuels, hence leading to the demand for surface well testing services. The decline in the present oil well resources led to increase in the investment of the major oil & gas players in the exploration of oil & gas resources on shore and offshore. The increase in the sales of automotive vehicles and increase in the air traffic across the globe has led to increase in the consumption of fossil fuels. The presence of above mentioned utilization of services and demand for oil & gas products in various sectors such as chemicals, and power generation are some of the major factors projected to boost the well testing services market growth during the forecast period.
Surge in demand for oil and gas have rendered the existent reservoirs exhausted in oil & gas industry. The requirement for the analysis of the reservoir capacity, sampling the rocks, pores, and fluids being derived from the reservoir, is actively supporting the growth of the reservoir sampling services. Increasing dependency on geological core samples, understanding the geo-mechanical changes is also substantiating the demand for reservoir sampling services in well testing services market.
The global well testing services market forecast is segmented on the basis of service type, well type, application and region. On the basis of service type, it is segmented into downhole well testing, surface well testing, reservoir sampling, real time well testing, and hydraulic fracturing method testing. On the basis of well type, the market is segmented into horizontal wells and vertical wells. In addition, on the basis of application, the global well testing services market is segmented into onshore and offshore.
Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, North America accounts for the largest well testing services Market Share, followed by Asia-Pacific and Europe.
The major companies profiled in this report include Weatherford, Baker Hughes Company, Schlumberger, Halliburton, China Oilfield Services Limited, Oil States International Inc., Tetra Technologies Inc., SGS SA, Edge Drilling, Oilserv, National Energy Services Reunited, Wellmax, TechnipFMC, EXALO Drilling SA, and Greene's Energy Group. Rapid development of industrialization and urbanization have led to depletion of natural resources, which led to exploration of oil & gas resources, increase in investment of the market players to develop more efficient technology for detection have positive impact on the market. Additional growth strategies such as expansion of production capacities, acquisition, partnership and research & innovation in the detection technologies have led to attain key developments in the global well testing services market trends.
The real time well testing segment dominates the global well testing services market. Real time well testing helps to monitor all the data and trends of the well during the working condition. This is used to make real time decisions, to ensure safe operations, to quality check and validate the data, and to optimize the operations, leading to less flaring and lower cost. New testing tools and techniques on these real time data will increase the accuracy of the data which can help in the understanding of the operations and of the well and reservoir. Having access to real time information will improve the communication between offshore and onshore teams and is a major driving factor of real time well testing service. The increase in offshore oil & gas facilities across the globe has led to the demand for real time well services. The presence of advantages this service such as help to quality check the data, understand any wellbore dynamic effect and monitor integrity of the Downhole shut in valve. The rapid development in the manufacturing facilities of above mentioned products will provide ample opportunities for the development of the market.
The horizontal well segment dominates the global well testing services market. A horizontal well is a type of directional drilling technique where an oil or gas well is dug at an angle of at least eighty degrees to a vertical wellbore. This technique has become increasingly common and productive in recent years. The horizontal well technology is used in shale gas, coal bed methane, hydraulic fracturing, infill drilling, gas reservoir, coal seam, gas production, and others. Rising concerns about the need to minimalize environmental damage caused by rapid infrastructure development across the globe worldwide are contributing significantly to the increased adoption of horizontal wells. Growing utility installations, burgeoning investments in shale gas development projects, and rising expenditures aimed at various developments in oil & gas industry. The above mentioned factors will provide ample opportunities for the development of the market during the forecast period.
The onshore segment dominates the global well testing services market. Onshore refers to the mainland. In exploration and production, “onshore” refers to the development of oil fields, gas deposits and geothermal energy on land. The development of extraction plants and oil well on mainland has led to the demand for well testing services market. The presence of oil & gas facilities on mainland is a major factor driving the demand for well testing services market. The onshore exploration and re-exploration activities are expected to fuel the growth of the onshore segment of the market. Further, the technological advancements to achieve cost and operational efficiency are expected to boost the market. The presence of above mentioned advantages will drive the growth of the market.
North America is analyzed across the U.S., Canada, and Mexico. U.S. and Canada are the major players in this region. The North America well testing services market revenue is estimated to surpass $ 10.6 billion by 2031. The U.S. government regulations, especially after the proposal of the current President Biden with various initiatives and actions aim to produce three billion gallons of sustainable fuel, to reduce aviation emission by 20% by 2030, and support American agriculture and manufacturing while providing extra income to the farmers while helping the government to tackle the climate crisis. The Environmental Protection Agency (EPA), estimates that hundreds of landfills could support gas to energy projects and has also established the Landfill Methane Outreach Program. This program was developed to reduce methane emissions from landfills in a cost-effective manner while encouraging the development of eco-friendly and economically beneficial landfill gas to energy projects. The above mentioned policies and investments are major factor driving the growth of the market in this region during the forecast period.
Impact of Covid-19 on Global Well Testing Services Market
The outbreak of has led to the decline in the production of billions of barrels of oil, trillions of cubic meters of gas, and millions of tonnes of coal from global energy systems in 2020. The decline in the demand for oil & gas products across the globe due to the shutdown of manufacturing industries has negative impact on the well testing service market growth. In addition, the shutdown of fossil fuel power generation facilities across the globe due to decline in the demand for power from chemical and other manufacturing industries have led to decline in the oil & gas resources.
Post pandemic, government has invested in the oil & gas sectors to boost the development of economy which was affected due to outbreak of pandemic. The emerging economies such as India and China have invested in exploration activities to reduce the imports of fossil fuels in order to make the country energy demand sustainable.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the well testing services market analysis from 2021 to 2031 to identify the prevailing well testing services market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the well testing services market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global well testing services market trends, key players, market segments, application areas, and market growth strategies.
Well Testing Services Market Report Highlights
By Service Type
By Well type
Key Market Players
Minerals Technologies Inc., Weatherford, SGS SA, Schlumberger Limited, MB Petroleum Services, EXPRO Group, National Energy Services Reunited, TETRA Technologies, Inc., Helix Energy, Baker Hughes, TechnipFMC Plc, Oil States International, Inc., Halliburton
According to CXO Perspective, the global well testing services market is expected to witness increased demand during the forecast period, due to surge in the demand for fossil fuels. The demand for fossil fuels is mostly due to rapid industrialization and urbanization in developing countries.
The increasing utilization of enhanced oil recovery technology and its utilization in the oil & gas industry will improve the lifespan of the oil wells which will have certain impact on the demand for well testing services. The presence of digitization in the oil & gas industry for real time monitoring will drive the demand of the market. The increase in investment of the market players to develop technologies which can help the major oil & gas industry players to minimize the risk potential and earn maximum profits with low cost will have positive impact on the well testing services market.
The outbreak of pandemic has led many developing countries to face problems over the import of oil & gas related products. Hence, in order to reduce the dependence of petroleum resources on import has led to the increase in the investment in the exploration of oil & gas resource on mainland and offshore regions. The presence of demand for petroleum products in various sectors will drive the demand for well testing services market.