Dwindling crude oil prices present a gloomy picture for the oilfield services industry; however, service companies are likely to ride out the storm with long-term contracts and mergers.
Globally, the oil and gas industry is currently in a highly “volatile” state. Due to on-going events such as the proliferation of unconventional resource exploration in North America, significant economic slowdown in China, and OPEC’s snub to cut down production have resulted in a surge in the availability of oil globally. This is creating a discrepancy in supply-demand dynamics, resulting in declining oil prices. Oil companies around the world have shelved major projects, which have forced the new exploration and production sectors to face the pressure of this slowdown. However, the increase in production from petroleum-rich nations such as the US, Saudi Arabia, and Russia has reinforced the demand for production based services.
The oilfield services industry comprises all services associated with the oil and gas exploration and production process, such as locating energy sources, energy data management, drilling and formation evaluation, well construction, and production and completion services. The service providers ensure that the production and exploration activities are running smoothly, despite the distance and locations. The primary limiting factor for the oilfield services industry is the volatility of oil prices. However, in the long term, the demand for oil and gas from around the world may help overcome the price volatility. Besides environmental concerns regarding exploration and production activities, operational challenges, especially in deep and ultra-deepwater locations, is an aspect that is a cause for concern to the oilfield services industry.
However, for market-leading players looking to make a sizeable investment in this market space, it is crucial to gain a thorough understanding of the competitive and market landscapes for developing an effective decision-making strategy for sustainable growth. Our market intelligence study helps companies in setting clearer goals for different service lines, which is vital for improving their businesses’ operating model and identifying avenues for potential market opportunities.
The Business Challenge
To gain insights into the competitive landscape and profiling of companies at a country level, the client approached Infiniti to provide actionable quantitative and qualitative insights and recommendations for the oilfield services segment. The strategic research engagement focused on the eight service lines — wireline logging, coiled tubing/stimulation, cementing, directional drilling/LWD, surface well testing, slick line, mud logging, drilling fluids – in eight countries within the MENA region. The oil services conglomerate also wanted to gain an in-depth understanding of the market, market pricing, and competitive landscape, which would help them to develop strategic plans for the future and take initiatives for future growth including organic growth and through mergers and acquisitions.
The primary aspect of this market intelligence study was to carry out company profiling with areas of strategic importance to support the client’s strategic growth plans for the near future.
At Infiniti, our team of market intelligence professionals understand that to achieve the best research results it is essential to follow a blended approach consisting of qualitative and quantitative analysis, along with following recent innovations and developments in the market through journals and reaching out to prominent stakeholders such as KOLs, industry experts, product users, and procurement experts.
Why Infiniti Research is the preferred partner for more than 55 Fortune 500 Companies
Solution Offered and Business Impact
Our dedicated market intelligence team has considerable expertise in managing large-scale market and information and insights specific to oilfield services, oil and gas, upstream and downstream technologies, and allied industries. To understand the market dynamics specific to the oil services industry in each region, our industry specialists engaged in exploratory discussions with oilfield services and technology market experts, market stakeholders, channel partners, and customers, who can provide accurate information on the market, service lines, and sub-elements, under focus.
Our research team also referred to specialized news aggregators, annual reports, industry databases, media platforms, industry forums, and company presentations to develop an initial repository of information and data points and identify market stakeholders for conducting primary research.
To assess the challenges specific to the oilfield services sector, Infiniti’s market intelligence team has developed a comprehensive proprietary database consisting of information on more than two million industry experts, key opinion leaders, payers, key competitors, and end-users.
Benefits of Our Integrated Approach?
In a relatively short period of just four weeks, the client – a leading oilfield services company – derived numerous benefits in terms of understanding the current market space and service lines. Additionally data and insights offered by our market intelligence team were utilized for devising strategic plans for future growth, including organic growth and through merger and acquisition activities.
Here are some of the key points appreciated by our clients
- Dedicated Market Intelligence Portal. A centralized platform for the collection, storing, processing, reporting, and dissemination of information with the specific purpose of assisting the decision-making process and developing actionable insights. This portal includes comprehensive information on quantitative and qualitative aspects on target markets, competitors and end-users.
- Collaborative learning. We leveraged the experience of our healthcare team and our technical capabilities to enable report-sharing and other collaborative features appreciated by client teams.
- Database Access. Access to a patient database containing information about 60+ medical diseases and conditions, such as patients undergoing treatment, untreated patients, and patients with chronic conditions.
- Interactive Dashboard. Using our Portal based solution for healthcare professionals, we took a design-first approach to problem-solving and helped break through previously held assertions.
- Value for Money. Infiniti’s dedicated client management team customizes reports to suit business requirements and offers the best insights for every dollar spent.
A must-read market intelligence case study for strategy experts and decision makers looking for insights on oilfield services.