Pressure pumping is a process used in oil and gas extraction that involves pumping fluids and proppant mixtures, with additives, at high pressure and rates into rock formations. Pressure pumping helps extract oil and gas from shale formations through hydraulic fracturing. The process creates fractures that allow oil and gas to flow more freely from the formation to the wellbore. Pressure pumping services like cementing, acidizing and fracturing are crucial for completing oil and gas wells across North America and other major shale plays globally. The process enables access to hydrocarbon reserves that were previously uneconomical with conventional drilling techniques.
The pressure pumping market is estimated to be valued at USD 74.4 Bn in 2024 and is expected to reach USD 114.1 Bn by 2031, growing at a compound annual growth rate (CAGR) of 6.3% from 2024 to 2031.
Key players operating in the pressure pumping market are Baker Hughes, Halliburton, Schlumberger, Weatherford International, and Superior Energy Services.
Key Takeaways
Key players: Key players operating in the pressure pumping market are Baker Hughes, Halliburton, Schlumberger, Weatherford International, and Superior Energy Services. Baker Hughes is a leading provider of equipment and services for hydraulic fracturing, cementing, acidizing and production enhancement around the world. Halliburton is recognized globally for its pressure pumping portfolio including hydraulic fracturing, cementing, stimulation and well intervention services.
Growing demand: Rising exploration and production activities targeting unconventional oil and gas reservoirs such as shale gas and tight oil have led to an increased demand for pressure pumping services worldwide. Countries striving for energy independence through indigenous production are driving higher exploration and production investments.
Global expansion: Major pressure pumping companies are expanding their global footprint to capitalize on Pressure Pumping Market Opportunities in emerging unconventional markets. Pressure pumping players are acquiring local companies and establishing manufacturing and service centers in regions like the Middle East, Latin America and Asia Pacific with high potential for shale development.
Market key trends
One of the key trends in the pressure pumping market is the adoption of advanced techniques like horizontal drilling and multistage hydraulic fracturing which has allowed viable production from tight oil and shale gas resources globally. The combination of horizontal drilling and multistage fracturing has transformed the shale gas and shale oil industries by enabling economic extraction of these resources. This technology-led surge in unconventional oil and gas production is a major driver spurring demand for pressure pumping services worldwide.
Porter's Analysis
Threat of new entrants: Pressure pumping market requires high capital investment for equipment and services, posing barriers to entry.
Bargaining power of buyers: Large oil & gas companies have significant bargaining power over pressure pumping service providers due to their consolidated spending power.
Bargaining power of suppliers: Specialized equipment manufacturers and suppliers have bargaining leverage over pressure pumping companies relying on their machinery and products.
Threat of new substitutes: Limited substitutes exist for pressure pumping operations involved in specific oil and gas extraction activities.
Competitive rivalry: Fragmented market with both global and regional players competing on price and service differentiation to gain projects from oil producers.
Geographical Regions
North America dominates the global pressure pumping market currently, with the US witnessing over 60% of the total activities. This is attributed to continued mature shale development in regions such as Permian basin, Eagle Ford and Bakken shale.
The Middle East market is anticipated to display the fastest growth over the forecast period, driven by ongoing exploration, production as well as enhanced oil recovery projects in countries including Saudi Arabia and UAE. Major investments planned in expanding unconventional oil reserves would substantially increase pressure pumping demand in this region.
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Author Bio:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
