Abstract
Global demand to grow 5% annually through 2012
The world oilfield equipment market is projected to increase 5.0 percent per
year through 2012 to $70 billion. This will represent a significant
deceleration from the 2002-2007 pace, when persistently high global oil and
gas prices and rapid economic development in China and India combined to
create a highly conducive environment for worldwide oil and gas drilling
activity. The global economic slowdown and reduction in crude oil prices as of
late 2008 will most likely also dampen oil and gas equipment sales for much of
2009. Nevertheless, growth should remain strong between 2010 and 2012, as
heavily populated China and India continue to recover from a temporary
slowdown and post robust economic growth.
Rapid growth expected in developing countries
The most rapid growth in oilfield equipment demand through 2012 will occur in
the rapidly growing oil producing countries of the developing world, including
emerging oil suppliers in West Africa, Latin America and southeast Asia, which
do not presently comprise particularly large markets, but hold significant
potential. In addition, ongoing modernization of the vast Russian crude oil
complex -- as well as those of other former Soviet states such as Azerbaijan
and Kazakhstan -- will open up considerable opportunities for suppliers of
oilfield machinery and equipment going forward. Iraq' s oil and gas sector will
also register strong growth as the country recovers from war.
By contrast, maturity and declining output of fields located in the US,
Mexico, the UK, Norway and elsewhere will work to suppress oilfield equipment
markets in these countries, although there will be some opportunities in
repair/maintenance and enhanced oil recovery activities. Finally, any number
of countries in both the developed and developing worlds hold favorable
prospects for natural gas production, which will stimulate some demand for
oilfield machinery and equipment. Additionally, if prospects for oil and gas
remain favorable, drilling activity for coal bed methane (CBM) and oil sands
will continue to expand, especially in Canada, the US, Venezuela and China. In
stark contrast to demand, oilfield equipment manufacture is concentrated
heavily in the industrialized nations of North America, Western Europe and the
Asia/Pacific region, which boast significant expertise in higher value-added
industrial machinery production capability. The US is by far the major global
supplier, with China also becoming important. Although multinational firms
that dominate the world oilfield equipment industry will continue to
incrementally shift manufacturing capacity to fastgrowing developing markets,
most production will continue to occur in more industrialized nations.
Study coverage
This new Freedonia industry study, World Oilfield Equipment, presents
historical data plus forecasts for 2012 and 2017 for oilfield equipment supply
and demand, as well as market by product, in six regions and 23 countries. The
study also considers market environment factors, evaluates company market
share and profiles 33 global competitors.
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