Global Slickline Services Market 2014 - 2020

GLOBALSLICKLINE SERVICESMARKET

Market Shares, Forecasts& Trends

2014 - 2020

mordorintelligence.com

Global Slickline Services Market | Sample

RESEARCH METHODOLOGY

The research methodology can be summarized in the following sequence:

1) Secondary Research: Information collected from a number of public and paid data sources. Public

databases, company annual reports (if any), white papers and research publications by recognized oil

and gas industry experts have been utilized. Paid data sources include authentic energy databases.

2) Primary Research: After collecting data from secondary sources, primary interviews were conducted

with stakeholders at different points of the value chain like manufacturers, end users and key opinion

leaders of the sector in the world. Primary research was used both to validate the data points obtained

from secondary research and to fill the data gaps after secondary research.

3) Market Engineering: The market engineering phase involves analyzing the data collected, market

breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are

used to arrive at a complete set of data points that give way to valuable qualitative and quantitative

insights. Each data point is verified by the process of data triangulation to validate the numbers and

arrive at close estimates.

4) Expert Validation: The market engineered data is verified and validated by a number of experts, both

in-house and external.

5) Report Writing: After the data is curated by the mentioned highly sophisticated process, the analysts

begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the

entire ecosystem in a single report.

Global Slickline Services Market | Sample

4. MARKET OVERVIEW

4.1 DRIVERS

4.1.3 INCREASING EXPLORATION ACTIVITY

Oil and gas exploration is one of the core activities of the oil and gas industry. Countries seek to

increase their reserves and develop production in order to meet the increasing demand for energy.

There were some difficulties with operating in tougher environmental conditions, especially deeper

waters in some regions such as the North Sea and Gulf of Mexico.

Global spending on exploration and production activities has increased by 5 percent (18 billion) in 2013,

while spending on property acquisition fell by $17 billion. Total upstream spending by the top 40 oil and

gas companies was relatively flat in 2013 (+0.4%), compared to strong growth from 2000 to 2012

(averaging 11 per cent per year).

The dramatic increase in drilling activity across the globe has boosted every country’s economy and job

growth significantly. Oil companies are not only eager to drill onshore/offshore fields but also

enthusiastic about creating jobs and bringing more oil to the world. This will help lower the oil and gas

prices. Increased offshore investment and production would support hundreds of new jobs and provide

billions of dollars in new wages and tax revenues.

Upstream expenditures for oil and gas production can be divided into three categories: Property

acquisition, exploration & development, and production. Exploration and development includes

expenditures related to searching and developing the facilities and infrastructure to produce reserves.

Global Slickline Services Market | Sample

Production includes costs associated with extracting oil and natural gas from the ground once the field

has been developed. Property acquisition includes costs incurred to purchase proved and unproved oil

and natural gas reserves.

Acquisition expenditures may fluctuate, spiking when there are large mergers and acquisitions. For

example, after ExxonMobil’s acquisition of XTO in 2010, acquisition expenditures had surged to very

high levels and later it declined by 2013.

Flat oil prices, decreasing reserves, increasing energy demand are encouraging oil and gas companies

to invest more in exploration and production activities thereby increasing the slickline services demand

globally.

Global Slickline Services Market | Sample

6 GLOBAL SLICKLINE SERVICES MARKET ANALYSIS, BY GEOGRAPHY

6.1 NORTH AMERICA

North America’s slickline services market is expected to reach $XX billion by 2020, up from $XX billion in

2013, with a CAGR of XX per cent.

Figure 15: North America Slickline Services Market Share by Country

North America is expected to lead the global slickline services market in the coming decade, as a result

of increasing shale activity and growing number of wells both in onshore and offshore areas.

The vast majority of the wells drilled in the region’s unconventional plays are horizontal. At some point,

most of these wells require artificial lift to produce hydrocarbons and/or dewater the gas wells, but

artificial lift in horizontal wells is still an evolving science. Applying artificial lift particularly in shale

assets is challenging, as the wells are often deep with long horizontal sections.

Significance of usage of artificial lift in North America is prominent. With more than half the natural gas

produced in the US is expected to come from horizontal well by 2030, including very tight sands and

shales, the market is expected to grow rapidly in the coming decade.

United States

Canada

Gulf of Mexico

DATA HIDDEN FROM VIEW

Global Slickline Services Market | Sample

Several methods of artificial lift systems have been incorporated in the region, including rod pumps,

electric submersible pumps and gas lifts. Depending on the application and geology, some have proved

more successful than the others. Most of these lift systems are proven to produce from vertical and

deviated wells. Now the companies are trying to extend the lessons learned from the experiences to

produce oil and gas from horizontal wells.

Increased investment in exploration and production would support hundreds of thousands of new

careers and provide billions of dollars in wages and tax revenues. Increased production is likely to

contribute an additional GDP in immediate new economic activity each year. This magnitude of

economic growth is expected to contribute federal and state and local tax revenue from production

equivalent to approximately $350 per person over the age of eighteen per year over a similar time

horizon.

Currently in the U.S., oil and natural gas production in offshore areas is limited to only few regions. It is

actually produced off the coast of six U.S. states, Alabama, Louisiana, Mississippi, Texas, California and

Alaska. Offshore oil and gas production has a significant impact on local onshore economies as well as

national economy.

Figure 16: Global Slickline Services Market Demand Trend

0

2

4

6

8

10

12

14

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

$ bi

llion

DATA HIDDEN FROM VIEW

Global Slickline Services Market | Sample

Table 8: Global Slickline Services Market Demand

Year Market Demand (in $ billions)

2010 XX

2011 XX

2012 5.71

2013 XX

2014 XX

2015 XX

2016 XX

2017 9.25

2018 XX

2019 XX

2020 XX

Global Slickline Services Market | Sample

9. KEY COMPANY ANALYSIS

9.2 SCHLUMBERGER LTD.

COMPANY OVERVIEW:

Schlumberger Limited is the world's largest oilfield services company. The company operates in more

than 80 countries and employs nearly 1,30,000 people. Schlumberger Limited, together with its

subsidiaries, supplies technology, integrated project management and information solutions to oil and

gas exploration and production industries worldwide. The company was founded in 1926 and its

principal offices are located in Paris, Houston, London and The Hague.

BUSINESS DESCRIPTION:

Schlumberger operates through three groups: Reservoir characterization, drilling and production.

The Reservoir Characterization group provides reservoir imaging, monitoring, and development services;

wireline technology that offers open-hole and cased-hole services; exploration and production pressure

and flow-rate measurement services; information solutions, such as software, consulting, information

management, and IT infrastructure services that support oil and gas industry; data interpretation and

integration services; consulting services; and industry petrotechnical training solutions.

The Drilling group designs, manufactures, and markets roller cone and fixed cutter drill bits, and drilling

fluid systems; geo services; supplies engineering support, directional-drilling, measurement-while-

drilling, and logging-while-drilling services; provides bottom hole assembly drilling tools, borehole

enlargement technologies, impact tools, and tubulars and tubular services; and dynamic pressure

management solutions.

The Production group provides well services comprising pressure pumping, well cementing, stimulation,

and intervention; well completion services and equipment, such as packers, safety valves, and sand

control technology; artificial lift; coiled tubing equipment and services; slickline services for downhole

Global Slickline Services Market | Sample

mechanical well intervention, reservoir monitoring, and downhole data acquisition; subsea solutions;

and geological storage solutions, including storage site characterization for carbon dioxide, as well as

engages in the development, management, and environmental protection of water resources.

KEY FINANCIALS:

Full year 2013 revenue of $45.27 billion increased 8 percent versus the same period last year with

international revenue 11 percent higher and North America revenue increasing 3 per cent.

Internationally, higher exploration and development activities in a number of geomarkets, both offshore

and onshore markets, contributed to the increase. The increase was led by the Middle East and Asia

which increased 23 per cent, mainly from robust results across a diversified portfolio of projects and

activities in Saudi Arabia, Iraq and UAE: increased seismic surveys across Asia, and sustained land and

offshore drilling activity in Australia and China geo markets. Europe/CIS/Africa revenue increased 8 per

cent, led by the Russia and central Asia region on strong land activity in central Siberia and robust

offshore projects in Sakhalin. The Sub-Saharan region increased on strong development, exploration

and seismic activities as well. Latin America was increased by 3 per cent, mainly due to solid progress

on an SPM project in Ecuador and strong IPM results in Argentina.

North America growth is driven by increased offshore revenue as a result of higher drilling and

exploration activities. This increase was largely offset by a decline in land as a result of reduction in rig

count and pricing weakness in the areas of drilling, stimulation and wireline, although the pricing trend

slowed down during the second and third quarters.

Full year 2013 pretax operating income of $9.34 billion increased 15 per cent versus the same period

last year as international pretax operating income of $6.88 billion increased 24 per cent, while North

America pretax operating income of $2.7 billion was flat.

Global Slickline Services Market | Sample

Schlumberger Financial Performance ($ millions)

Financial Performance 2013 2012 2011

Revenue 45,266 XX XX

Income from Continuing Operations XX XX

4,516

Schlumberger Financial Performance by Groups ($ millions)

Oil Field Services 2013 Column1 2012 Column2

Revenue Income Before Taxes Revenue Income Before Taxes

Reservoir

Characterization 12,246

XX XX XX

Drilling XX 3,309 XX XX

Production XX XX

14,802 XX

Eliminations & Other XX XX XX

-68

Total 45,266 XX XX XX

Global Slickline Services Market | Sample

Schlumberger Financial Performance by Geography ($ millions)

By Geography 2013 Column1 2012 Column2

Oil Field Services Revenue Income Before Taxes Revenue Income Before Taxes

North America 13,897 XX XX XX

Latin America XX 1,589 XX XX

Europe/CIS/Africa XX XX

11,444 XX

Middle East & Asia XX XX XX

1,921

Eliminations & Other 442 XX XX XX

Total XX 9,344 XX XX

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