Market Trends of Ecuador Wireline Logging Services Industry
This section covers the major market trends shaping the Ecuador Wireline Logging Services Market according to our research experts:
Cased Hole is Expected to Witness Significant Growth
- The advantages of cased-hole logging over open-hole logging are this method saves valuable rig time, lowers the risk of tool loss during the operation, and makes deployment of logging tools in cased-hole logging easier, especially in horizontal and high-angle wells.
- But cased-hole logging provides, in comparison with open-hole logging, poorer data quality and fewer measurement choices, and the data attained by this method does not help with completion decisions.
- Therefore, cased hole logging provides data at cheaper costs at the expense of quality and comprehensive data collection. Due to the method's nature, cased hole logging is generally used only during development.
- To reduce operational costs, the operators are expected to prefer cased hole logging over open hole logging operations, driving the cased hole logging market.
- According to BP Statistical Review, at the end of 2020, Ecuador had nearly 1.3 billion barrels of proven oil reserves, while as of 2021, production stood at only 473 thousand barrels/day. The country has vast acreage in the Amazon Basin, which is still unexplored and undeveloped. This drives the exploration industry significantly, driving demand for cased hole wireline logging services.
- The government of Ecuador is encouraging new foreign investments to compete with Columbia and Brazil, which have changed their contract terms to attract foreign investments into the oil & gas sector. The increase in foreign investments is expected to drive the upstream oil & gas activity, subsequently, the wireline services market.
Understand The Key Trends Shaping This Market
Download PDF
Environmental concerns to restrain market's growth
- Ecuador has significant oil and gas reserves, concentrated in the Amazon Basin, one of the most biodiverse and environmentally vulnerable biomes globally. The vast Ishpingo-Tambococha-Tiputini (ITT) fields are in the Amazon region and have been subject to protests by environmental groups and indigenous communities.
- As a result of these protests, as well as social unrest and attacks from indigenous groups on oil infrastructure, private companies have suspended operations or have limited participation in oil production activities in the ITT fields.
- This has led to significant production outages, resulting in a fall in Ecuador's oil production. According to state-utility PetroEcuador, two weeks of protests by indigenous and environmental groups during June 2022 resulted in 1.99 million barrels of lost oil production. Such events have led to a continuous decline in Ecuador's annual crude oil production, which has fallen steadily from 531 thousand barrels/day in 2017 to 473 thousand barrels/day in 2021.
- In September 2022, indigenous protestors and the Ecuadorian government agreed to a temporary moratorium on all new oil and mining concessions. This is expected to impact production expansion efforts during the forecast period significantly.
