The global oilfield services market reached an estimated value of $138.6 billion in 2010, and is expected to grow to a total of $212 billion by the end of 2017. Recent years have seen an increase in demand in the global oilfield services market, with E&P activity and offshore activity both growing. Due to the global economic slow-down, the market saw a negative growth in 2008, thereby leading to a decrease in the overall market size.
The crude oil price, after reaching record highs in mid-2008, collapsed to lows of close to $35 per barrel in 2009. The ensuing financial crisis and the global recession ensured a negative outlook for any growth in oil and gas demand in the short-term. This resulted in many oil and gas Exploration and Production (E&P) projects being delayed or cancelled. As a result, the slowdown had a negative effect on the global oilfield services industry. In addition to the cyclical nature of the oilfield services industry, the slowdown resulted in the industry experiencing negative growth. The oilfield services industry has been affected the most because many E&P companies have slashed their capital expenditure budgets. However, by the end of 2009, commodity prices increased to $70 to $80 per barrel due to the improving outlook for the global economy.
The subsequent increase in commodity prices and the overall positive outlook for the global economy increased the demand for oilfield services. During 2010–2012, the industry had to face multiple challenges such as a minor financial crisis in Europe, increased competition, stricter imposition of regulatory frameworks for safety in the context of various E&P activities by governments worldwide, increasingly challenging operational activity, and the rising operational costs of oilfield services. Subsequently, for the period 2013 to 2017, the industry is expected to be driven by technological developments propelled by the need for ambitious exploration in terms of challenging geographies, stringent upstream regulatory frameworks implemented by governments worldwide, and increased efficiency in terms of enhanced hydrocarbon recovery.
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