The Saudi Arabia Oilfield Equipment Rental market is anticipated to grow at a CAGR of around 8% during the forecast period, 2022-27. The rising oilfield exploration activities, discoveries of oilfield reserves, technological enhancements in drilling operations in oilfields, and increasing investments by the companies & the government in oilfield construction activities would drive the market for oilfield equipment rental in the country during the forecast years. Saudi Arabia has always been naturally gifted with a large number of oilfield reserves, which accounted for the considerable demand for oilfield equipment rental such as drill pipes, drill collars, etc., in the historical years.
In addition, the oilfield sector of Saudi Arabia ranked second worldwide as of 2020, as reported by the US Energy Information Administration, with a production capacity of about 259 billion barrels. As of 2019, the offshore oilfield of the Marjan oil & gas field situated on the eastern coast of Saudi Arabia has further progressed for the expansion activities under the Marjan Crude Increment Programme. The Marjan Crude Increment Programme majorly aims to increase the production capacity of the Marjan oilfield by 300 Million Barrels of Crude per Day (MBCD) of Arabian Medium Crude Oil.
Therefore, with rigorous research & developments as well as advanced geophysical survey, the untapped oilfield reserves would be further explored in Saudi Arabia. Consequently, the rising trend of exploring new oilfields & expansion of existing oilfields would proliferate the demand for oilfield equipment rental such as drill pipes, drill collars, etc., during the forecast years.
Drilling Equipment Held a Significant Share in the Saudi Arabia Oilfield Equipment Rental Market
Based on type, the market is divided into Drilling Equipment, Pressure & Flow control Equipment, Fishing Equipment, and Others. Of them all, the Drilling Equipment held a significant share in the historical years, as it has been primarily used for the drilling operations in oilfields. Additionally, the growing demand for oil & gas in order to fulfill the energy requirement worldwide would accelerate the oil production activities of Saudi Arabia due to the presence of a large number of oilfield reserves in the country. Consequently, driving the demand for drilling equipment rental in Saudi Arabia. Along with that, unexplored onshore & offshore oilfield reserves would increase the production capacity, which is further augmenting the demand for drilling equipment in the country.
Onshore Locations to Dominate the Saudi Arabia Oilfield Equipment Rental Market
Based on location, the market bifurcates into Onshore & Offshore. Among them, the Onshore location would witness a sizeable demand for equipment such as drill pipes, drill collars, reamers, etc., during the forecast period, due to the presence of a large number of oilfields on onshore locations. The further exploration of existing onshore oilfield reserves would create plentiful opportunities for revenue regeneration for the companies in oilfield equipment rental in the coming years. As of 2021, Ghawar has been producing conventional oilfields located onshore in Saudi Arabia and is expanding onshore production capabilities. Additionally, the site is under construction stage & is further targeted to start up from 2022 to 2024. As a result of onshore oilfield expansion, the demand for oilfield rental equipment would also increase from 2022 to 2027, reveals MarkNtel Advisors in their research report, "Saudi Arabia Oilfield Equipment Rental Market Analysis 2022-2027F.”
Leading Companies in the Market
According to MarkNtel Advisors, the leading players in the Saudi Arabia Oilfield Equipment Rental Market are Baker Hughes Company, Parker Wellbore, Schlumberger Middle East, Superior Energy Services Inc., Seadrill Ltd., Weatherford International PLC, Nabors Industries Ltd., Certified Oilfield Rentals LLC (COR Middle East), Great Valve General Contracting, Rawabi Oil & Gas, etc.
Key Questions Answered in the Study