Global Coiled Tubing Services Market Report and Forecast 2024-2032

Global Coiled Tubing Services Market Outlook

The global coiled tubing services market size reached a value of USD 4.17 billion in 2023. The global market is expected to grow at a CAGR of 6.2% between 2024 and 2032. The market is likely to reach a value of around USD 7.17 billion by 2032.

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News and Developments in the Coiled Tubing Services Market

In April 2023, Exxon Mobile Corporation stated that it would invest USD 10 billion on offshore projects in Guyana. By 2027, it is anticipated that the project will generate about 1.2 million barrels of oil and gas daily. Starting in 2025, the Exxon Yellowtail development in the Stabroek block is anticipated to produce roughly 2,50,000 barrels of oil per day.

Following the project's receipt of governmental and regulatory clearances, the final investment decision was taken. The increasing investments are therefore anticipated to propel the coiled tubing services market growth in the forecast period.

In January 2023, Schlumberger stated that they had been awarded a 5-year contract for a coiled tubing drilling service that would be used in a significant Saudi Arabian gas field. The agreement, which has a two-year extension option, includes a comprehensive set of special underbalanced coiled tubing drilling technologies, in addition to other basin-appropriate technology.

The drilling rigs, technology, and services, such as drill bits, logging while drilling (LWD), measurement while drilling (MWD) and drilling fluids, cementing, and well completion are all included in the integrated project scope. The fit-for-basin technology and subject-matter expertise of Schlumberger for gas well development in the area is strongly supported by this contract.

In December 2021, Nexus Energy Technologies, Inc. ("Nexus") and Lee Specialties, Inc. ("Lee") announced their merger. The merged company, NXL Technologies, Inc. ("NXL"), will be the top producer of wireline and coiled tubing pressure control equipment, offering exclusive blowout preventers, electric-powered wireline skids, remote well connection tools, accumulators, lubricators, and ancillary equipment for sale, rental, servicing, and repair to the energy industry.

This merger is anticipated to help NXL Technologies Inc. to become a market leader in coiled tubing and wireline pressure control equipment, thereby accelerating the market growth.

In July 2021, the UAE's largest oil and gas company, ADNOC, invested USD 763.7 million in integrated rig-less services to Halliburton, Schlumberger, and ADNOC Drilling to accelerate drilling efforts and enable the UAE's gas self-sufficiency. Companies must deliver coiled tubing services with thru-tubing downhole tools and stimulation services, chemicals/fluid systems, and production logging tools and services in accordance with the terms of this contract. Consequently, increasing investments are helping the coiled tubing services market share to grow.

Investment in Drilling Operations, Production of Hydrocarbons, and Rise in Exploration Activities to be the Key Market Trends

Long metal pipes called "coiled tubing" are used in drilling sites and are rolled up on large reels. It is generally made of steel or specific composites that allow it to be wound with no fracture around the reel. It offers enhanced string longevity and fatigue resistance.

Coiled tubing is used to perforate, log, fracture, drill, and grind frac plugs. These services are witnessing increased demand for well intervention, drilling, and other applications.

• Drilling operations are receiving significant investment as a result of the increased demand for oil, which is driving the demand for coiled tubing services.

• The increasing production of hydrocarbons is also increasing the global demand for the product.

• Rising exploration activities in the oil and gas industry and increasing demand for natural gas are some of the factors propelling the market growth.

• During the anticipated period, increased use of coiled tubing in drilling and well intervention operations will drive the market expansion globally.

• Further, the rising oil and gas consumption in developing countries is aiding the coiled tubing services market forecast across the world.

Government Initiatives, Increasing Number of Mature Fields, and Introduction of New Policies to Provide Lucrative Opportunities to the Market

Government Initiatives

The market expansion is likely to increase by the government's and other private entities' growing initiatives for exploration and production operations.

Increasing Population

The increasing population in India and China is leading to high energy requirements, which is expected to drive the coiled tubing services market development across the world.

Increasing Number of Mature Fields

An increasing number of mature fields in various regions is projected to aid the market growth further.

Growing Understanding of Using Coiled Tubing Services

The increased understanding of the efficient use of coiled tubing to generate significant amounts of oil and gas is anticipated to have a positive impact on the global market.

Introduction of New Policies

The installation of new policies and regulations will further act a one of the leading drivers for the market growth.

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Fluctuations in Demand and Supply, High Maintenance Costs, Geopolitical Tensions and Strict Regulations May Pose as Challenges for the Market

Fluctuation in Demand and Supply

The price of crude oil is dependent on changes in policies and fluctuations in demand and supply in the global market. Thus, high volatility in crude oil prices is expected to hinder the coiled tubing services market growth.

High Maintenance Cost

The high maintenance costs involved in delivering coiled tubing services are expected to impede the market growth.

Rising Geopolitical Tensions and Wars

Geopolitical tensions between countries, such as the Russia-Ukraine crisis, are projected to limit market growth during the projection period.

Strict Regulations by the Government

The market for coiled tubing services may be hampered by the implementation of strict government restrictions about environmental pollution from oil and gas products.

Coiled Tubing Services Market Analysis

The various services provided in the market include drilling and well intervention, among others. The market can be divided, based on operation, into circulation, pumping, logging, and perforation, among others. The market finds its applications in onshore and offshore. The regional markets include into North America, Europe, the Asia Pacific, Latin America, the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model and giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global coiled tubing services market, covering their competitive landscape and latest developments like mergers, acquisitions, expansion and investments plans.

• Baker Hughes Company

• Halliburton Company

• Calfrac Well Services Ltd.

• Schlumberger Limited

• Weatherford International plc

• Others

Coiled Tubing Services Market Provides Services Such as Drilling and Well Intervention

Drilling refers to the entire set of procedures required to build circular-section wells using excavation techniques. The rapid increasing drilling activities, especially in Middle East countries, are driving the drilling services in the market. Various companies globally are investing in this product since it accelerates drilling.

For instance, Schlumberger stated in January 2023 that they had been awarded a five-year contract for a coiled tubing drilling service to be used in a significant Saudi Arabian gas field.

According to the coiled tubing services market report, well intervention services are anticipated to increase rapidly over the forecast period. Coiled tubing operations are a part of well intervention services. Since they enable tasks like zonal isolation, re-perforation, fluid pumping, fishing, and stimulation, coiled tubing services are most frequently employed in well intervention applications. Due to increasing capital expenditures for well performance enhancement and well cleaning, the well intervention market is expected to expand.

For diminishing reservoirs, well completion or mechanical activities like fishing, perforating producing wells, removing scale, installing a plug or packer, and increasing production are necessary. Demand for these services is anticipated to drive the well intervention segment of the market further over the anticipated year.

Circulation, Pumping, Logging, and Perforation are the Key Operations in the Market

The circulation operation is utilised when a hydrostatic head restricts the flow of formulation fluids due to its weight, as per the coiled tubing services market research. It is important to circulate the fluid in this situation. Coiled tubing is used to force out the kill fluid and improve oil and gas production by pumping nitrogen gas into the bottom of the wellbore.

Pumping with coiled tubing is a common method of introducing fluid into a well. The technique for cementing perforations in pumping operations has the significant advantage of avoiding potential damage to critical components, such as the down-hole safety valve. Additionally, by minimising the number of units that must be on site, the use of coiled tubing in the deployment of a complicated pump can lower deployment costs.

Coiled tubing is used in logging operation because of its rigidity and capacity to be pushed well below the surface. New opportunities for well logging can be created by enclosing an electric wireline conductor cable inside coiled tubing. These growing possibilities are expected to increase the coiled tubing services market demand.

Coiled Tubing Services Finds its Major Applications in Onshore and Offshore Segments

It is anticipated that the onshore segment will maintain its dominance throughout the forecast period because it is more affordable and practical to produce oil and gas from onshore wells than from offshore ones. Leading nations are concentrating on efforts related to onshore exploration and production. Additionally, the segment is also anticipated to be fuelled by the rising utilisation of fracturing and shale during the projection period.

The region's production of crude oil and natural gas has significantly increased due to the development of local shale gas and tight oil sources. This has increased the effectiveness of the operations for raising oil and gas well output, which has fuelled the onshore segment's expansion.

Due to the fast-rising demand for oil and gas, which has compelled major firms to engage in offshore drilling operations, the offshore application segment is likely to expand in the coming years. This would provide further opportunities for market growth.

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North America and Asia Pacific to Have a Strong Hold on the Global Market During the Forecast Period

In North America, the market is anticipated to be dominated by the expanding potential for the production of natural gas, shale gas, tight gas reserves, and oil. There has been a significant rise of unconventional resources in key nations like the United States and Canada. This, together with expanding petrochemical demand, production, and exploration activities, is likely to contribute to the coiled tubing services market share.

Significant increase in coiled tubing units and related enterprises keeps rates competitive and makes coiled tubing workovers more viable. This makes the United States a prime location for the development of revolutionary technology.

The mature oil and gas reserves of the Permian Basin and Bakken Ford require a new level of innovation and development strategy. As a result, drilling and redevelopment of established fields are primarily driving the growth of the market in the United States. Thus, North America is predicted to be the leading region, driven by new well drilling, increased well base production, and increased lateral length in newly drilled horizontal wells.

In April 2023, The Interior Department of the United States announced that it had allowed leases for oil drilling on government land and had planned to auction off about 1,44,000 acres across nine states.

The Biden administration announced that it would resume leasing out additional areas for oil and gas drilling on public lands while simultaneously increasing the government royalties that drillers are required to pay. This choice is estimated to spur the nation's oil and gas production, ultimately becoming one of the main coiled tubing services market trends in the region.

Due to the rising oil and gas consumption in developing countries, the Asia Pacific market is likely to expand at a rapid pace. The demand for oil and gas is rapidly increasing in developing countries like India, Vietnam, and China.

According to an IEA report released in June 2023, global oil demand is expected to exceed pre-pandemic levels in 2024, reaching 101.6 mb/d. Increase in consumption and a resurgent China will drive advances next year, with growth quickening from 1.8 million barrels per day in 2023 to 2.2 million barrels per day in 2024.

Also, the increasing population in India and China have led to high energy requirements, driving the coiled tubing services market growth in the region.

Due to the GCC countries' prominence as major oil producers, Middle East and Africa is an important region of the market and is projected to grow during the forecast period. The future forecast for oil production in the Middle East remains positive due to ongoing investments by national oil companies.

Competitive Landscape

Baker Hughes Company is an energy technology provider which offers services to commercial and industrial clients across the globe. Innovative technology and services are advancing the energy industry, making it safer, cleaner, and more effective for people and the environment.

Halliburton assists its clients in maximising value throughout the reservoir's lifecycle, from finding hydrocarbons and maintaining geological data to drilling and evaluating formations, building, and finishing wells, and maximising output over the asset's lifespan.

Schlumberger Limited is a market leader in the delivery of technologies and services to the energy sector, according to the coiled tubing services market research. The company creates, develops, and provides technology that transforms how work is done for a large portion of the oil and gas lifecycle in 120 countries. The company offers the broadest selection of goods and services in its field and specialises in reservoir characterisation, drilling, production, and processing.

Weatherford International plc is the oil and gas industry's top provider of wellbore and production solutions and provides integrated solutions across well stages and customer domains. The business operates out of about 350 locations, including ones for production, R&D, services, and training.

Calfrac Well Services Ltd., with a combined fleet of 1.3 million horsepower, is one of the world's largest hydraulic fracturing firms. The API Q2 authorised business Calfrac operates in the United States, western Canada, Russia, and Argentina. It’s well stimulation services, such as coiled tubing, hydraulic fracturing, and cementing, among others, are designed to boost the output of oil and natural gas.

Key Highlights of the Report