Market Size of Saudi Arabia Drilling Services Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 5.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Drilling Services Market Analysis
The Saudi Arabian drilling services market is expected to register a CAGR of over 5% during the forecast period.
Covid-19 severely impacted the market, with several oil and gas upstream projects being delayed or canceled in response to the low-price environment and revised economics. Despite this, as the global demand for hydrocarbon recovers in the post-pandemic period, the market is expected to return to pre-pandemic levels during the forecast period.
- To boost crude oil production capacity to nearly 13 million barrels/day by 2027, Saudi Arabia is expected to make significant investments in the domestic upstream sector, which is expected to be a major factor driving the market during the forecast period.
- However, rising investments in renewable energy, coupled with emission reduction and other environmental targets, are expected to restrain the development of the market during the forecast period.
- The development and commercialization of the significant domestic non-associated natural gas reserves for domestic consumption and export remain a significant growth opportunity for the market during the forecast period.
- With massive investments in the Jaffurah Shale play, the largest unconventional natural gas field in the world, the unconventional segment of the market is expected to grow at the fastest pace during the forecast period.
Saudi Arabia Drilling Services Industry Segmentation
Drilling is defined as a complex set of operations necessary to construct wells of circular sections applying excavation techniques to depths from which oil or natural gas can be commercially extracted.
The Saudi Arabian drilling services market is segmented by location of deployment and reservoir type. By location of deployment, the market is segmented into onshore and offshore segments. By reservoir type, the market is segmented into conventional and unconventional. For each segment, the market sizing and forecasts have been done based on revenue (USD million)
Saudi Arabia Drilling Services Market Size Summary
The Saudi Arabian drilling services market is poised for growth, driven by significant investments in the upstream sector aimed at boosting crude oil production capacity. Despite the challenges posed by the COVID-19 pandemic, which led to delays and cancellations of projects, the market is expected to recover to pre-pandemic levels as global demand for hydrocarbons increases. The country's strategy to enhance its crude oil production capacity to nearly 13 million barrels per day by 2027 is a key factor propelling the market forward. However, the rising focus on renewable energy and environmental targets may pose challenges to market development. The development of substantial domestic non-associated natural gas reserves presents a significant growth opportunity, particularly with the Jafurah Shale play, the world's largest unconventional natural gas field, expected to drive rapid expansion in the unconventional segment.
Saudi Arabia, a leading crude oil producer, has faced a decline in production in recent years, exacerbated by the economic impact of the pandemic. However, the recovery in global energy demand and rising crude prices have prompted the country to increase production capacity, aiming to boost revenues. Saudi Aramco's plans to significantly raise capital expenditure and the development of unconventional gas reserves, such as the Jafurah Shale play, are expected to significantly influence the market. Despite challenges in shale gas production, substantial investments and ambitious production targets are set to drive demand in the unconventional segment. The market is moderately fragmented, with major players like Schlumberger, Weatherford, Baker Hughes, Halliburton, and Nabors Industries actively participating, alongside recent contracts and projects that underscore ongoing growth and development in the region.
Saudi Arabia Drilling Services Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast in USD billion, till 2027
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1.3 Recent Trends and Developments
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1.4 Government Policies and Regulations
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1.5 Market Dynamics
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1.5.1 Drivers
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1.5.2 Restraints
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1.6 Supply Chain Analysis
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1.7 PESTLE Analysis
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Saudi Arabia Drilling Services Market Size FAQs
What is the current Saudi Arabia Drilling Services Market size?
The Saudi Arabia Drilling Services Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in Saudi Arabia Drilling Services Market?
Schlumberger PLC, Weatherford International Drilling PLC, Baker Hughes Co, Halliburton Company and Nabors Industries Ltd are the major companies operating in the Saudi Arabia Drilling Services Market.
