Market Dynamics
Introduction
Casing creates and maintains a well for safety, efficiency, and longevity in hydrocarbon production. Casing involves installing a steel pipe into a drilled wellbore designed to stabilize the formation and isolate and control the pressure zones to extract hydrocarbons. Cementing operations ensure the wellbore is more adequately maintained: cement slurry is pumped down the rig casing and around the outside of the casing to keep casing casing in place, block potential zones for fluid migration, and protect the groundwater zones. Casings and cementing are crucial components of well integrity on and offshore.
The well casing & cementing market has significantly transformed in recent years due to an emphasis on oil and gas exploration into deeper and more complex reservoirs after shale and deepwater basins. Advanced casing and cementing solutions have successfully contributed to the wellbore stability on unconventional fields and ensured compliance with safety and environmental regulations. Some of the trends in this market are challenging the way casing and cementing operations are completed. The most notable trends include shifting toward high-capacity strength steel casings, real-time monitoring for cementing diagnostics, and automation strategies to promote efficiencies and reduce risks. In both conventional drilling and unconventional fields, casing and cementing operations are essential in providing wellbore balance and creating extended well economic lifespans.
Market Driver
One of the key driving factors for the well casing & cementing market is the growing global demand for energy, which has led to new drilling activity in older and younger hydrocarbon locations. Countries in North America, the Middle East, and Africa are investing heavily in upstream development in shale gas, tight oil, and offshore reserves. Since these upstream projects demand casing and cementing services that require high-quality and high-pressure/high-temperature cement placement, the well casing & cementing market is vital to the successful and safe planning and execution of some of the most complicated drilling operations in the oil and gas industry.
Recent Market JVs and Acquisitions:
A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:
- In March 2022, Baker Hughes formed a joint venture with Saudi Aramco.
- In June 2023, RPC Inc. acquired Spinnaker Oilwell Services.
Segment Analysis
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Segmentations
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List of Sub-Segments
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Segments with High-Growth Opportunity
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Type Analysis
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Casing Pipe, Cementing Equipment, Casing Equipment, and Services
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Casing pipes are expected to remain dominant in the coming years.
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Application-Type Analysis
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Onshore and Offshore
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Onshore holds the larger share of the market in the upcoming years.
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Well-Type Analysis
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Oil, Gas, Geothermal, Water, and Other Well Types
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Oil Wells are anticipated to dominate the market throughout the forecasted period.
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Cement Method-Type Analysis
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Conventional, Foam, Lightweight, Expanding, and Thixotropic
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Conventional cement method types are expected to be dominant in the market.
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Cement-Type Analysis
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Portland, Pozzolan, Silica Fume, Lightweight, and High?Strength
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Portland cements hold the largest share of the market in the upcoming years.
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Application Stage-Type Analysis
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Primary, Liner, Tieback, Squeeze, and Plug & Abandonmen
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The primary application stage is expected to be the dominant type in the market throughout the forecasted period.
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Region Analysis
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North America, Europe, Asia-Pacific, and The Rest of the World
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North America is expected to maintain its reign over the forecast period.
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By Type
“Casing pipes are expected to remain in the market during the forecast period.”
Of the categories — casing pipe, cementing equipment, casing equipment, and services — casing pipe has the largest share of the market, which is somewhat expected since casing is a fundamental part of any well drilled and is a primary mechanism for providing stability for safety during hydrocarbon extraction. However, it is realized that the casing pipe is a large consumption item, as well as a high consumption item, because casing pipe is installed in numerous stages and in every well drilled, whether drilling depth and or formation dictate that there will be surface, intermediate, and production casing sections.
This creates quantities that are greater and a predictable pattern of inputs, thus creating volume that is important where there are substantial amounts of material (usually steel) purchased. The other categories, like cementing service and cementing apropos, while essential where the casing does the function of producing hydrocarbons; those functions do not happen without casing for deposit and cement to support the casing function. Casing itself is not only a basic function material, but it is also a determined cost of the initial well construction, accounting for some significant proportion of upstream well construction costs. With more deepwater completions, as well as unconventional shale developments requiring high-strength casing pipes with corrosion protection, this segment's total development is solidified in more developed and developing oil-producing areas.
By Application Type
“Onshore is expected to remain the dominant in the market during the forecast period.”
Onshore applications dominate the well casing & cementing market due to the sheer volume of wells drilled per year across land-based fields of North America, the Middle East, Russia, and China. Onshore projects have reduced exploration and development costs, allowing more drilling and a more substantial use of casing and cementing operations. Casing and cementing are part of well integrity, whether in conventional vertical wells or horizontal shale plays in the onshore development.
Even though offshore wells—mainly in deepwater and ultra-deepwater fields—are technical and highly valued (both of which require premium casing and specialized cementing techniques), they represent a smaller proportion of the total well count at the global scale and therefore occupy a relatively small market share compared to the onshore applications. In summary, the onshore applications for casing and cementing are where the largest share lies in the overall market due to their volume and repeat deployment on larger oil and gas projects.
By Well Type
“Oil well is expected to remain the dominant, fastest-growing well type of the market during the forecast period.”
Wells for oil are a significant segment, largely due to the overall scale of global oil exploration and production that is prevalent in certain places, such as the Middle East, North America, and some areas in Asia. Wells for oil require multiple casing and cementing operations to isolate the zones of production and be capable of varying in pressure conditions, making them large users of both casing pipes and cementing products. In addition, oil drilling tends to generate deeper depth wells and more complex well architectures, thus increasing the usage of both and the frequency of service.
In comparison, there are significantly fewer wells for gas and geothermal, while technically challenging but growing in importance. Water wells and "others" (CO? injection or mining applications) are special niche segments with lower complexity and lower casing/cementing requirements, leaving oil wells the predominant cash-generating category in this well-considered segment.
By Cement Method Type
“Conventional cementing is expected to remain the dominant technology in the market during the forecast period.”
Conventional cementing is the most commonly used method because it applies to most well conditions and is a low-cost method of cementing. The process uses standard Portland-based cement slurries to set casing and isolate formations. Because of the ease of usage, availability, and established success, conventional cementing is extensively utilized across both surface and production intervals in onshore and offshore wells.
Even though there are some specialty options and techniques like foam or expanding cement in certain conditions (areas with lost circulation zones and areas subjected to thermal expansion), it would be rare for these materials to be required for more than a limited number of complicated wells. Conventional cementing will continue to dominate the industry, as the majority of wells can utilize this option at a relatively low total project cost and with a reduced operational exposure.
By Cement Type
“Portland cement is expected to remain the dominant product in the market during the forecast period.”
Portland cement is the industry's baseline and far and away the most commonly used cement in oil and gas well construction. Portland cement possesses a consistent set of physical and chemical properties that ensure adherence between the casing and formation, along with reliable resistance to the conditions and loads typically encountered within the well. Because knowledge of concrete as a material has advanced, it is also versatile as it can be compounded using additives for setting time, density, or adapted for use in either hot or cold conditions, which allows for a broad range of well-designed applications.
Types of cements such as pozzolanic or silica fume are typically used as specialty blends designed to enhance specific characteristics, usually related to durability or resistance to shrinkage, and they are usually added as replacements or enhancers to Portland cement rather than as complete replacements - this serves to reinforce Portland cement's position as the market leader for cement.
By Application Stage Type
“Primary cementing is expected to be the dominant application stage type of the market during the forecast period.”
Primary cementing is the leading application stage because it is a step required in every well. Primary cementing is to provide the first layer of zonal isolation and casing support. Primary cementing is the process of placing cement around casing immediately after drilling, aiming to complete the zonal isolation of the wellbore to prevent fluid movement between formation layers and to secure the casing in the wellbore.
Other stages, such as squeeze, liner, or plug & abandonment stages, are conditional and executed on a case-by-case basis as remedial work or completion work. They can be very important in specific cases, but are executed on a small volume basis or a single well. Recognizes that primary cementing is simply performed on every single well and therefore comprises the largest component by volume and value.
Regional Analysis
“North America is expected to remain the largest market for Well Casing & Cementing during the forecast period.”
The casing & cementing market is dominated by North America due to overall well drilling activity, especially in unconventional shale plays such as the Permian Basin, Bakken, and Marcellus. There are also advanced service providers in the U.S. (Halliburton, Schlumberger, Baker Hughes), giving it a competitive advantage in both design elements and innovations in cementing. Finally, the regulatory landscape in the U.S. demands a higher degree of well integrity practices, which increases the dimensions and quality of cementing.
While the Middle East and Asia-Pacific have their share of drilling activity, they lag in both the number of wells drilled and technology. North America also has a higher frequency of times where horizontal drilling is done at a fast pace, pad drilling is frequent, and well turnover is much higher, giving it the largest share of the demand for casing and cementing globally.
