Well cementing is a service that helps prevent the fluid movement from the reservoir to the wellbore. It also protects and supports the well casing in addition to providing zonal isolation. Oilfield service companies offer these services for the completion of new wells and for the sealing of lost circulation zones or areas where there is less/absence of flow within the well.
Based on service type, the well cementing market is classified into primary, remedial, and other services, including advanced cementing. Of these, primary well cementing accounted for an estimated revenue of 75.0% in the market in 2018. This can be mainly attributed to the increase in E&P activities coupled with the need for zonal isolation during well cementing, which led to the demand for primary services. The market for this category is further expected to increase on account of the revival in crude oil prices since 2017.
On the basis of well type, the well cementing market is categorized into oil, gas, and shale gas. Under this segment, oil well cementing held the largest share in the market, with an estimated contribution of 55.0% in 2018. In recent years, the recovery in crude oil prices has encouraged E&P companies to invest more in crude oil E&P projects, which, in turn, has led to the drilling of new wells. This increase in investments in new projects is further expected to fuel the market growth in this category during the forecast period.
The well cementing market is also bifurcated into onshore and offshore applications. Between the two, cementing services for onshore wells held the larger share in the market in 2018. This can be mainly attributed to the presence of a large number of onshore reserves globally, which can be drilled at a low operational cost. In addition, the development of advanced exploration technologies is further facilitating deep drilling operations of existing onshore wells, thereby boosting the market for onshore well cementing.
Crude oil and gas prices have a major impact on the global E&P spending, which, in result, affects the value chain of upstream oil and gas projects in the long run. For instance, the crude oil prices had fallen in mid-2014 due to global political and economic factors. Due to this, several ongoing projects of upstream companies had suffered. Thus, volatility in crude oil prices impacts the well cementing market growth, as any decline in crude oil prices may result in a delay in several upstream activities, such as drilling, exploration, and production.
The potential for high volume production in untapped Arctic oil and gas reserves can be viewed as a growth opportunity by the players in the well cementing market. The Arctic region is home to a large number of both onshore and offshore oil and gas reserves. According to the United States Geological Survey (USGS), the Arctic region is estimated to contain around 90.0 billion barrels of undiscovered oil, 1,669.0 trillion cubic feet of gas, and 44.0 billion barrels of undiscovered natural gas liquids. Thus, the immense potential in reserves is drawing the attention of several E&P companies towards the Arctic region, with Russia, the U.S., Canada, and Norway having already started E&P activities in the region.
Zhejiang Ruico Advanced Materials Co., Ltd is a professional acrylic resins Manufacturers and flame retardants factory, our company was established in 2012, listed in China on 2019, Ruico is a national high-tech enterprise, Passed ISO9001 quality management system, have provincial-level R&D center, hired academicians, PhD, and other technicians totally 35 people, got 42 patents, the rule-maker of national flame retardant standards.
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