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Oil-Well Cement Market Overview
Oil-Well Cement Market size is forecast to reach US$922.5 million by 2027, after growing at a CAGR of 3.8% from 2022 to 2027. In the exploitation process of petroleum and natural gas, when the drilling depth reaches the design requirements, It is usually put in a steel casing into the borehole and pump cement slurry into the borehole around the casing to cement the casing with the surrounding formation. The cement is a product obtained by doping quartz sand powder and admixture. This process not only blocks the oil, gas, and water layers but also forms an isolated channel from the oil or gas layer to the surface. The rapid investments in the oil and gas sector are driving market growth. Sodium silicate has found multiple uses in cementitious materials. For example, it is used as an alkali-activator in oil-well cement. Cement industries are striving to lower their production cost, one effective method of which is the substitution of traditional fuels such as coals, oil, and natural gas with petroleum coke.
Covid-19 Impact
The coronavirus disease 2019 (COVID-19) pandemic has plunged the world into an economic crisis vastly different from any in recent memory. The dual health and economic crisis were experienced in 2020, which will require more than monetary policy in the long term. Due to the imposition of lockdowns across different countries, companies are facing severe cash flow issues. Halting or slowing down of manufacturing of, the Oil-Well Cement Market, as well as disruptions in the supply chain logistics globally owing to the outbreak of COVID-19, have resulted in reduced demand for potassium fluorinate. Besides, OECD data shows that global GDP decreased by 4.2% in 2020, while it is expected to increase by the same amount in 2021. By late 2021, the global economy is expected to return to pre-coronavirus levels, but this will be an uneven process across different countries.
Report Coverage
The “Oil-Well Cement Market Report– Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Oil-Well Cement Industry.
By Raw Materials: Limestone, Coke, Iron Ore, and Iron Scrap
By Type: Grade O or Ordinary, HSR or High Sulphate Resistant, MSR or Moderate Sulphate Resistant, and Others
By Additives: Accelerator, Retarders, Extenders, Fluid Loss and Loss Circulation Additives, Dispersants, and Others
By Application: On shore (Jacketing, and Others) and Off shore (Offshore Grouting, Pipeline burial/trenching, and Others)
By Geography: North America (USA, Canada and Mexico), Europe (UK, France, Germany, Italy, Spain, Russia, Netherlands, Belgium, and Rest of Europe), APAC (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), and Rest of the world (Middle East and Africa)
Key Takeaways
- Asia-Pacific region dominates the Oil-Well Cement Market owing to a rapid increase in the Oil and Gas industry.
- The rapid investments in the oil and gas sector are one of the major reasons driving the market growth.
- The fuel price fluctuation might hamper the market growth of oil-well cement.
Figure: Asia Pacific Oil-Well Cement Market Revenue, 2021-2027 (US$ Million)
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Oil-Well Cement Market Segment Analysis - By Application
Offshore segment is estimated to grow at a 6.5% CAGR during the forecast period. Oil-well cement is used for cementing work in the drilling of oil wells where they are subject to high temperatures and pressures. They usually consist of Portland or pozzolanic cement with special organic retarders to prevent the cement from setting too quickly. The offshore wells utilized the cement for surface casing strings and the plug and abandonment program after formation evaluation is performed. The increasing offshore projects are anticipating the growth of oil-well cement. For instance, according to the Indian Ministry of Petroleum and Natural Gas, in 2021 the petroleum ministry has told ONGC to give away a 60% stake plus operating control in India's largest oil and gas producing fields of Mumbai High and Bassein to foreign companies.
Oil-Well Cement Market Segment Analysis - By Geography
Asia Pacific had accounted for the largest share of 38% in 2021 and is estimated to grow with a CAGR of 7.5% for the Oil-Well Cement Market during the forecast period 2022-2027, followed by North America and Europe. APAC holds the dominance in the market particularly due to emerging economies like China and India. Increasing growth in the coal mining sector along with rising investments in research and development is fueling the growth of oil-well mining market in this region. For instance, India has witnessed a steady increase in production as well as consumption of petroleum products over the years. The production of petroleum products stood at 262.94 MMT in the years 2019-20. After the Covid-19 pandemic, oil and gas industry investment in the region will have to rise over the next three years by at least 25% yearly from 2020 levels to stave off a crisis. Thus, anticipating the growth of Oil-Well Cement Market.
Oil-Well Cement Market Drivers
Investments in the Oil and gas sector
The rapid growth and investments in the oil and gas industry is certainly boosting the market growth of oil-well cement. For instance, in 2021, annual global energy investment is set to rise to USD 1.9 trillion, rebounding nearly 10% from 2020 and bringing the total volume of investment back towards pre-crisis levels. Furthermore, upstream oil and gas investment is expected to rise by about 10% in 2021 as companies recover financially from the shock of 2020, but spending remains well below pre-crisis levels. Firmer demand and higher oil and gas prices have led to diverging investment strategies. Cost control remains a common theme, but some major national oil companies are looking to invest counter-cyclically to gain market share prospects for investment have improved markedly along with economic growth, although there are significant country-by-country variations. Thus, anticipating the growth of Oil-Well Cement Market during the forecast period.
Welding requirements in Oil and Gas Offshore industry
With the constant construction and investments in the development of the oil and gas sector, oil-well cement demand is rising. They are widely used in the end-use as they are brittle fractures of cement sheath, induced by perforation and stimulation treatments, which can cause crossflow of formation fluid and increase casing damage. The construction projects for oil and gas projects, for instance, the projects of Nigeria’s Petroleum Industry Bill (PIB), South Africa passed its upstream legislation, Somalia’s first-ever licensing round in early 2021, and the speedy development of Tanzania LNG Liquefaction project, point to a future of reliable energy production for Sub-Saharan Africa indicates the upcoming developments in the region. Additionally, Rovuma LNG Liquefaction Plant project is worth US$22.4 billion, expected to produce 8.2 million tonnes of LNG per year. The constant development of oil and gas industries in the region and considering the demand of oil-well cement from the sector will enhance the market growth of Oil-Well Cement Market.
Oil-Well Cement Market Challenges
Fluctuation in Fuel Price Might Hamper the Market Growth
The rise and bust of prices are the norms in the oil and gas markets. Throughout the years, the nominal price of oil has fluctuated significantly, reaching as low as US$3 per barrel in the 1970s and as high as US$143 per barrel in July 2022. The oil price is affected by many factors, all of which are global in nature, and reach from supply and demand fundamentals to the strength of the US Dollar and most recently due to the pandemic and the Russian-Ukraine war. Global demand for oil and gas has been steadily rising. Strong economic growth particularly in fast-growing developing economies like China and India has been a major contributor to increasing levels of demand. However, the fluctuation of price might hamper the overall market growth of Oil-Well Cement.
Oil-Well Cement Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Oil-Well Cement Market. Oil-Well Cement Market top 10 companies include:
- LafargeHolcim
- HeidelbergCement AG
- TPI Polene Public Company Limited
- Buzzi Unicem SpA
- Raysut Cement Co.
- Kerman cement
- Colacem SpA
- Oman Cement Company
- Omran Anarak Cement Co.
- Cebo International BV
Recent Developments
- In November 2021, Oman Cement Company (OCC) launched an oil-well cement strength testing equipment, which is considered the most advanced instrument in the Sultanate of Oman used for measuring the quality of cement.
- In January 2020, Dalmia Cement (Bharat) started producing oil well cement at its Khelrihat plant in Meghalaya. The subsidiary of Dalmia Bharat says that it is a cement manufacturer to obtain a license for manufacturing oil well cement in the northeast region of the country from the American Petroleum Institute (API) and the Bureau of Indian Standards (BIS).
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1. Oil-Well Cement Market- Market Overview
1.1 Definitions and Scope
2. Oil-Well Cement Market- Executive Summary
2.1 Key Trends by Raw Materials
2.2 Key Trends by Type
2.3 Key Trends by Additives
2.4 Key Trends by Application
2.5 Key Trends by Geography
3. Oil-Well Cement Market– Comparative analysis
3.1 Market Share Analysis- Major Companies
3.2 Product Benchmarking- Major Companies
3.3 Top 5 Financials Analysis
3.4 Patent Analysis- Major Companies
3.5 Pricing Analysis (ASPs will be provided)
4. Oil-Well Cement Market- Startup companies Scenario Premium Premium
4.1 Major startup company analysis:
4.1.1 Investment
4.1.2 Revenue
4.1.3 Product portfolio
4.1.4 Venture Capital and Funding Scenario
5. Oil-Well Cement Market– Industry Market Entry Scenario Premium Premium
5.1 Regulatory Framework Overview
5.2 New Business and Ease of Doing Business Index
5.3 Successful Venture Profiles
5.4 Customer Analysis – Major companies
6. Oil-Well Cement Market- Market Forces
6.1 Market Drivers
6.2 Market Constraints
6.3 Porters Five Force Model
6.3.1 Bargaining Power of Suppliers
6.3.2 Bargaining Powers of Buyers
6.3.3 Threat of New Entrants
6.3.4 Competitive Rivalry
6.3.5 Threat of Substitutes
7. Oil-Well Cement Market– Strategic Analysis
7.1 Value/Supply Chain Analysis
7.2 Opportunity Analysis
7.3 Product/Market Life Cycle
7.4 Distributor Analysis – Major Companies
8. Oil-Well Cement Market– By Raw Materials (Market Size -US$ Million/Billion)
8.1 Limestone
8.2 Coke
8.3 Iron Ore
8.4 Iron Scrap
9. Oil-Well Cement Market– By Type (Market Size -US$ Million/Billion)
9.1 Grade O or Ordinary
9.2 HSR or High Sulphate Resistant.
9.3 MSR or Moderate Sulphate Resistant
9.4 Others
10. Oil-Well Cement Market– By Additives (Market Size -US$ Million/Billion)
10.1 Accelerator
10.2 Retarders
10.3 Extenders
10.4 Fluid Loss and Loss Circulation Additives
10.5 Dispersants
10.6 Others
11. Oil-Well Cement Market– By Application (Market Size -US$ Million/Billion)
11.1 On shore
11.1.1 Jacketing
11.1.2 Others
11.2 Off shore
11.2.1 Offshore Grouting
11.2.2 Pipeline burial/trenching
11.2.3 Others
12. Oil-Well Cement Market - By Geography (Market Size-US$ Million/Billion)
12.1 North America
12.1.1 USA
12.1.2 Canada
12.1.3 Mexico
12.2 Europe
12.2.1 UK
12.2.2 Germany
12.2.3 France
12.2.4 Italy
12.2.5 Netherlands
12.2.6 Spain
12.2.7 Russia
12.2.8 Belgium
12.2.9 Rest of Europe
12.3 Asia-Pacific
12.3.1 China
12.3.2 Japan
12.3.3 India
12.3.4 South Korea
12.3.5 Australia and New Zealand
12.3.6 Indonesia
12.3.7 Taiwan
12.3.8 Malaysia
12.3.9 Rest of APAC
12.4 South America
12.4.1 Brazil
12.4.2 Argentina
12.4.3 Colombia
12.4.4 Chile
12.4.5 Rest of South America
12.5 Rest of the World
12.5.1 Middle East
12.5.1.1 Saudi Arabia
12.5.1.2 UAE
12.5.1.3 Israel
12.5.1.4 Rest of the Middle East
12.5.2 Africa
12.5.2.1 South Africa
12.5.2.2 Nigeria
12.5.2.3 Rest of Africa
13. Oil-Well Cement Market– Entropy
13.1 New Product Launches
13.2 M&As, Collaborations, JVs and Partnerships
14. Oil-Well Cement Market– Industry/Segment Competition Landscape Premium
14.1 Company Benchmarking Matrix – Major Companies
14.2 Market Share by Key Region - Major companies
14.3 Market Share by Key Country - Major companies
14.4 Market Share by Key Application - Major companies
14.5 Market Share by Key Product Type/Product category - Major companies
15. Oil-Well Cement Market– Key Company List by Country Premium Premium
16. Oil-Well Cement Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
16.1 Company 1
16.2 Company 2
16.3 Company 3
16.4 Company 4
16.5 Company 5
16.6 Company 6
16.7 Company 7
16.8 Company 8
16.9 Company 9
16.10 Company 10 and more
"*Financials would be provided on a best-efforts basis for private companies*"
LIST OF TABLES
1.Global Oil-Well Cement Market, by Type Market 2019-2024 ($M)2.Global Oil-Well Cement Market Analysis and Forecast by Type and Application Market 2019-2024 ($M)
3.Global Oil-Well Cement Market, by Type Market 2019-2024 (Volume/Units)
4.Global Oil-Well Cement Market Analysis and Forecast by Type and Application Market 2019-2024 (Volume/Units)
5.North America Oil-Well Cement Market, by Type Market 2019-2024 ($M)
6.North America Oil-Well Cement Market Analysis and Forecast by Type and Application Market 2019-2024 ($M)
7.South America Oil-Well Cement Market, by Type Market 2019-2024 ($M)
8.South America Oil-Well Cement Market Analysis and Forecast by Type and Application Market 2019-2024 ($M)
9.Europe Oil-Well Cement Market, by Type Market 2019-2024 ($M)
10.Europe Oil-Well Cement Market Analysis and Forecast by Type and Application Market 2019-2024 ($M)
11.APAC Oil-Well Cement Market, by Type Market 2019-2024 ($M)
12.APAC Oil-Well Cement Market Analysis and Forecast by Type and Application Market 2019-2024 ($M)
13.MENA Oil-Well Cement Market, by Type Market 2019-2024 ($M)
14.MENA Oil-Well Cement Market Analysis and Forecast by Type and Application Market 2019-2024 ($M)
LIST OF FIGURES
1.US Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)2.Canada Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
3.Mexico Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
4.Brazil Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
5.Argentina Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
6.Peru Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
7.Colombia Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
8.Chile Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
9.Rest of South America Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
10.UK Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
11.Germany Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
12.France Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
13.Italy Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
14.Spain Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
15.Rest of Europe Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
16.China Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
17.India Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
18.Japan Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
19.South Korea Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
20.South Africa Global Oil-Well Cement Industry Market Revenue, 2019-2024 ($M)
21.North America Global Oil-Well Cement Industry By Application
22.South America Global Oil-Well Cement Industry By Application
23.Europe Global Oil-Well Cement Industry By Application
24.APAC Global Oil-Well Cement Industry By Application
25.MENA Global Oil-Well Cement Industry By Application