Market Trends of Middle East Seismic Services Industry
This section covers the major market trends shaping the Middle East Seismic Services Market according to our research experts:
Offshore Oil and Gas Industry is Expected to Dominate the Market
- The offshore segment accounts for the largest share of the middle-east seismic services market. Offshore seismic data usually has much higher quality compared to onshore due to a number of favorable conditions, including repeatable and consistent sources, good conditions for coupling at sources and receivers, and the uniform property of water as the medium.
- The Middle-East region, is one of the major offshore oil and gas producing regions and offshore oil and gas exploration spending in the region is set to grow significantly over the next few years. With the availability of abundant resources, coupled with increased potential to recover oil and gas from deep water and ultra-deep-water areas, it is expected to provide a great opportunity for the offshore oilfield services market.
- In February 2022, Abu Dhabi's state-owned oil and gas company announced the discovery of between 1.5 to 2 trillion standard cubic feet of gas in an offshore area located in the Emirate's Northwest. Further reservoir development is likely to be carried out, including seismic services work, which is expected to drive the market.
- Moreover, in July 2022, Abu Dhabi National Oil Company (ADNOC) announced a second discovery of natural gas resources through seismic services in the first exploration well in Abu Dhabi's Offshore Block 2 Exploration Concession, operated by Eni. The discovery from a new deeper reservoir indicates between 1 - 1.5 trillion standard cubic feet (TSCF) of raw gas in place.
- Therefore, factors such as increasing exploration and production (E&P) activities in the deepwater and ultra-deepwater reserves and increasing efforts by the oil and gas majors to tap into the undiscovered reserves are expected to drive the middle-east seismic services market.
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Saudi Arabia to Dominate the Market
- Saudi Arabia is one of the major global oil producers, with 10.954 million barrels per day (mb/d) of crude oil production in 2021. It is the largest crude oil exporter globally, registering nearly 161.7 billion USD in 2021. As a significant crude oil exporter, the country had great control over the international upstream market. The country plays a crucial role in controlling crude oil prices due to its high surge capacity. This may be considered a good sign for seismic services within the region.
- Also, the country has the world's fifth-largest estimated shale gas reserve, and thus, it has great potential for the country to replicate North America's unconventional reserves development growth. This, inturn, culminates the growth in the use of seismic surveys in the region.
- Moreover, in March 2022, the state oil company Saudi Aramco's Saudi Arabian Oil Company (Aramco) announced it would boost its capital expenditure to USD 40 to 50 billion, which further bolstered the country's the exploration and production activities. This in turn, culminates in the growth of seismic services across the region.
- Furthermore, in February 2022, Saudi Arabia announced the discovery of natural gas fields in five regions of the kingdom, namely, bordering Iraq, i.e. Shadoon, in the central region southeast of Riyadh, Shehab, in the empty quarter, Shehab, Shorfa, Umm Khansir, Samna. These gas discoveries showcase the prominence of seismic services within the region.
- Therefore, owing to the above points, Saudi Arabia is expected to dominate the middle-east seismic services market during the forecast period.
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