By OGJ editors
HOUSTON, Jan. 10 -- Global oil and gas equipment sales are expected to be slow for much of 2009 because of the economy and slumping oil prices in late 2008, said Freedonia Group Inc., a Cleveland industry research group.
The oil field equipment market is forecast to increase 2.9%/year during 2008-12 to reach $85 billion in 2012. Freedonia said this growth rate is a drastic deceleration from the 15.2%/year growth during 2002-07.
In its world oil field equipment study, Freedonia said the most rapid equipment demand growth through 2012 will come from a few countries in the developing world, especially Brazil, China, and Kazakhstan.
Nigeria and Angola also hold strong growth prospects if regional politics and the economy remain relatively stable, Freedonia said.
Natural gas drilling is forecast to grow especially fast in China and Qatar. In contrast, maturity and declining production in the US, Mexico, Venezuela, Norway, and UK will suppress equipment markets in those countries.
"In Mexico and Venezuela, growth could become stronger if foreign, technologically advanced, energy companies are allowed greater rights to drilling and exploration activities, a domain that is currently monopolized by inefficient state-controlled entities in both countries," Freedonia said.
Industry is expected to become more reliant on high-technology services such as directional drilling control and real time logging and measurement-while-drilling techniques.
"Despite the overall market exhibiting weak gains through 2012, prospects for certain products are more favorable, particularly for fixed-cutter drill bits and advanced well logging equipment," Freedonia said.
Large tubular goods market are expected to benefit from increased drilling efficiency and gains in casing demand being bolstered by a trend toward greater footage drilled per rig.
