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India Oilfield Services Market By Application (Onshore, Offshore); By Type (Equipment Rental, Field Operation); By Services (Drilling Services, Pressure Pumping Services, Wireline Services, Cementing Services, Mud Engineering, Drilling Waste Management Services); By Region – Growth, Share, Opportunities & Competitive Analysis, 2024 – 2032

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Published: | Report ID: 36781 | Report Format : PDF
REPORT ATTRIBUTE DETAILS
Historical Period  2019-2022
Base Year  2023
Forecast Period  2024-2032
India Oilfield Services Market Size 2024  USD 707.18 Million
India Oilfield Services Market, CAGR  12.25%
India Oilfield Services Market Size 2032  USD 1782.46 Million

Market Overview

The India Oilfield Services market is projected to grow from USD 707.18 million in 2024 to USD 1782.46 million by 2032, exhibiting a robust CAGR of 12.25%.

The India Oilfield Services market is experiencing significant growth driven by several key factors. Increasing demand for energy resources coupled with the government’s initiatives to boost domestic oil and gas production are driving the expansion of oilfield services. Moreover, advancements in technology such as the adoption of digital solutions, automation, and data analytics are enhancing operational efficiency and reducing costs for oilfield service providers. Additionally, the exploration and development of unconventional resources such as shale gas and tight oil are opening up new avenues for market growth, further bolstering the trajectory of the India Oilfield Services market.

In the geographical analysis of the India Oilfield Services market, regions such as the Western Ghats, the Krishna-Godavari Basin, and the Rajasthan Basin emerge as key hotspots for oilfield services activity due to their rich hydrocarbon reserves. Major players dominating the market landscape include established companies such as Oil and Natural Gas Corporation (ONGC), Schlumberger Limited, Halliburton Company, Baker Hughes, a GE Company (BHGE), and Weatherford International plc. These key players leverage their extensive expertise, technological prowess, and strategic collaborations to cater to the diverse needs of the oil and gas industry in India, ensuring a competitive edge in the market.

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Market Drivers

Rising Domestic Demand for Oil and Gas:

India stands as a major consumer of oil and gas, with its burgeoning population and rapid industrialization continually propelling energy demand upwards. For instance, India’s population growth rate is higher than the average global rate, with a significant increase from 17.64% to 31.8%. Alongside this, the country is experiencing rapid urbanization, with an estimated 270 million people likely to be added to India’s urban population by 2040. This demographic shift is accompanied by industrialization, with the urban growth rate higher than the global average. This surge necessitates a parallel increase in exploration and production activities within the oil and gas sector. For instance, indigenous crude oil production in India was 2.38 MMT in September 2023. Moreover, India’s oil demand is anticipated to rise by 50% to 7.2 MBD in 2030 from 4.8 MBD in 2019, compared to a 7% global growth rate. India’s natural gas demand is projected to triple to 133 BCM in 2030 from 64 BCM in 2019, a 12% increase compared to the global average.

Government Focus on Increasing Domestic Oil and Gas Production:

With the strategic aim of diminishing reliance on oil imports and securing energy autonomy, the Indian government has shifted its policies to prioritize investments in domestic exploration and development endeavors. For instance, India was already the world’s second-largest crude oil net importer in 2023, having boosted imports by 36% over the past decade to 4.6 million barrels per day (mb/d) to meet rising refinery intake. However, to reduce this dependency, the Indian government has been focusing on reducing its dependence on energy imports and diversifying its energy basket. The aim is to achieve energy security – the continuous availability of energy in varied forms, in sufficient quantities, at reasonable prices.

Depleting Onshore Reserves and Increasing Offshore Exploration:

As onshore reserves approach depletion, attention is shifting towards offshore exploration, where the promise of higher reserves beckons. For instance, the offshore natural gas production in India is estimated to reach over 13 billion metric standard cubic meter per day in fiscal year 2021, down from about 24 billion metric standard cubic meter per day during fiscal year 2015. Moreover, India recently launched a sizable offering for oil and gas exploration, with most of the blocks on offer lying offshore and in deeper waters.

Government Initiatives like Hydrocarbon Exploration and Licensing Policy (HELP):

In a bid to streamline the licensing process for exploration and production activities, the Indian government has introduced initiatives like Hydrocarbon Exploration and Licensing Policy (HELP). This proactive approach fosters increased participation from both domestic and international oilfield services companies. For instance, as of November 1, 2023, India had 10,938 kms of crude pipeline network, with a capacity of 153.1 MMTPA. In FY24 (until October 2023), the crude oil production in India stood at 17.17 MMT.

Market Trends

Focus on Environmentally Friendly Solutions:

Amidst growing environmental concerns, oilfield services companies are increasingly prioritizing the development and deployment of environmentally friendly technologies and practices across all phases of operations. For instance, the oil and gas operations account for around 15% of total energy-related emissions globally, the equivalent of 5.1 billion tonnes of greenhouse gas emissions. In response to this, the International Energy Agency’s Net Zero Emissions by 2050 Scenario projects that the emissions intensity of these activities will fall by 50% by the end of the decade. Implementing water recycling techniques is another key initiative. In the United States, for example, disposal accounts for 46% of produced water, followed by reinjection at 41% and recycling at 13%.

Adopting sustainable practices for waste management is also a priority. The oil and gas industry generates a large amount of waste during oil production and processing. Conventional treatment methods have been used to purify this waste, but they do not meet environmental regulations, especially when the goal is to reuse the water. Therefore, further research is needed to find an effective technology for managing this waste. By embracing eco-friendly solutions, companies not only mitigate their environmental footprint but also enhance operational efficiency, regulatory compliance, and stakeholder goodwill. For instance, the oilfield services and equipment (OFSE) industry provides equipment and services to oil and gas (O&G) exploration and production (E&P) companies worldwide. The industry has been focusing on reducing its dependence on energy imports and diversifying its energy basket.

Evolving Regulatory Landscape:

The regulatory landscape governing the Indian oil and gas sector is undergoing a significant transformation to address emerging challenges, improve safety standards, promote environment-friendly practices, and attract foreign investment. For instance, the Indian government has introduced initiatives like Hydrocarbon Exploration and Licensing Policy (HELP) to streamline the licensing process for exploration and production activities. Moreover, as of April 1, 2019, India stood as the second-largest refiner in Asia, with a crude oil refining industry boasting an annual capacity of 249.40 million metric tons (MMT).

Oilfield services companies must remain vigilant and adaptive in navigating these evolving regulatory frameworks to ensure compliance and mitigate associated risks. According to a report by Indian Oil Corporation Limited, the company has implemented a comprehensive Enterprise Risk Management (ERM) framework to manage both internal and external risks. This ability to identify, manage, and monitor risks allows companies to efficiently devise risk mitigation measures that are designed to ensure progress in a dynamic business environment.

Market Challenges Analysis

Price Sensitivity and Competition:

The Indian market exhibits a high degree of price sensitivity, with domestic service providers engaged in intense competition to offer cost-effective solutions. This competitive environment often exerts pressure on profit margins for oilfield services companies, necessitating a delicate balance between cost efficiency and maintaining service quality. The relentless pursuit of competitive pricing strategies underscores the imperative for companies to optimize operational efficiencies, innovate in service delivery, and differentiate themselves through value-added offerings to remain competitive amidst fierce market dynamics.

Limited Domestic Technology and Expertise:

India’s reliance on imports for certain advanced technologies and expertise in the oilfield services sector presents a significant challenge, contributing to increased costs and limiting indigenous innovation. The absence of robust domestic capabilities in areas such as drilling, well completion, and reservoir management underscores the need for strategic investments in research and development (R&D) and talent development initiatives to bolster domestic technological capabilities and reduce dependency on external sources. Bridging this technological gap is essential for enhancing competitiveness, promoting indigenous innovation, and fostering sustainable growth within the Indian oil and gas industry.

Market Segmentation Analysis:

By Application:

The India Oilfield Services market can be segmented based on application into onshore and offshore activities. Onshore operations typically involve exploration and production activities conducted on land, while offshore operations encompass activities conducted in marine environments, such as oceans and seas. Both segments play integral roles in meeting the country’s energy demands and advancing its hydrocarbon exploration endeavors. Onshore operations often entail less complex logistics and lower operating costs compared to offshore activities. However, offshore operations offer access to potentially larger reserves, albeit with higher technical and logistical challenges. Understanding the distinct characteristics and requirements of each application segment is essential for oilfield services companies to tailor their offerings and effectively address the diverse needs of clients operating in different environments.

By Type:

Furthermore, the India Oilfield Services market can be categorized based on type into equipment rental and field operation services. Equipment rental services involve the leasing of specialized machinery, tools, and instruments required for various oilfield activities, providing clients with flexibility and cost-effectiveness. On the other hand, field operation services encompass a wide range of activities, including drilling, well intervention, production optimization, and maintenance services, among others. These services are essential for ensuring the smooth and efficient operation of oil and gas assets throughout their lifecycle. By offering a comprehensive suite of equipment rental and field operation services, oilfield services companies can cater to the diverse needs of clients across different stages of the oil and gas value chain, thereby maximizing market penetration and revenue opportunities.

Segments:

Based on Application:

  • Onshore
  • Offshore

Based on Type:

  • Equipment Rental
  • Field Operation

Based on Services:

  • Drilling Services
  • Pressure Pumping Services
  • Wireline Services
  • Cementing Services
  • Mud Engineering
  • Drilling Waste Management Services

Based on the Geography:

  • Western Region (Gujarat and Rajasthan)
  • Eastern Region (Assam, Tripura, and West Bengal)
  • Western Offshore Region
  • Southern Region
  • Northern Region

Regional Analysis

Western

The Western region of India, particularly the states of Gujarat and Rajasthan, accounts for the largest share of the oilfield services market, estimated at around 40%. This region is home to several major oil and gas fields, including the Bombay High Offshore Basin and the Barmer Basin. The presence of established players, such as Oil and Natural Gas Corporation (ONGC) and Cairn Energy, has fueled the demand for a wide range of oilfield services, including exploration, drilling, and well intervention services.

Eastern

The Eastern region, comprising states like Assam, Tripura, and West Bengal, holds a significant market share of approximately 25%. This region is known for its mature oil and gas fields, such as the Digboi and Jaipur fields, and has witnessed increased exploration and production activities in recent years. Major companies like Oil India Limited (OIL) and private players have been actively engaging oilfield service providers to enhance recovery rates and optimize operations.

Key Player Analysis

  • Schlumberger India Technology Centre Private Limited
  • Asian Energy Services Limited
  • HSL Asia Limited
  • Alphageo (India) Limited
  • Halliburton India Operations Pvt. Ltd.
  • OGD Services Limited
  • Petrofac Engineering Services India Private Limited
  • Baker Hughes Oilfield Services India Private Limited
  • Oil States Industries (India) Private Limited
  • Fluor Daniel India Private Limited

Competitive Analysis

In the fiercely competitive landscape of the India Oilfield Services market, several leading players vie for market dominance and strive to differentiate themselves through innovation, service quality, and strategic partnerships. Schlumberger India Technology Centre Private Limited stands out as a global leader, leveraging its extensive portfolio of technology-driven solutions and strong R&D capabilities to offer a comprehensive range of oilfield services. Halliburton India Operations Pvt. Ltd. competes aggressively, renowned for its integrated services approach and cutting-edge technologies tailored to the Indian market. Baker Hughes Oilfield Services India Private Limited maintains a strong foothold, emphasizing its commitment to sustainability and digitalization initiatives. Additionally, Asian Energy Services Limited and Petrofac Engineering Services India Private Limited emerge as formidable contenders, recognized for their expertise in field operations and equipment rental services. Despite facing challenges such as price sensitivity and regulatory complexities, these leading players continue to drive innovation and excellence, shaping the trajectory of the India Oilfield Services market.

Recent Developments

In February 2023, State-owned ONGC announced that it would be investing in offshore western assets to boost output. The firm stated its communication with global oil majors such as Equinor ASA, Chevron Corp., and Exxon Mobil Corporation.

In January 2024, Cairn Oil & Gas submitted its Field Development Plan (FDP) to produce over 2,000 boepd. The Jaya oil and gas discovery field located in the Bharuch district of Gujarat holds the potential to double production capabilities. It is the first FDP filed in OALP regime from 144 blocks awarded under 8 OALP rounds.

Market Concentration & Characteristics

Market concentration in the India Oilfield Services market is notable, with a few major players dominating a significant portion of the market share. These key players exhibit characteristics of extensive industry experience, technological prowess, and diverse service offerings. While Schlumberger India Technology Centre Private Limited, Halliburton India Operations Pvt. Ltd., and Baker Hughes Oilfield Services India Private Limited emerge as prominent leaders, there is also a presence of smaller, specialized firms catering to niche segments. This concentration is driven by factors such as high entry barriers due to capital-intensive nature of the industry, stringent regulatory requirements, and the need for specialized expertise. Furthermore, the market characteristics reflect a dynamic ecosystem characterized by continuous technological advancements, evolving customer preferences, and strategic alliances. As companies navigate through these complexities, the focus remains on innovation, operational efficiency, and delivering value-added solutions to meet the evolving needs of the Indian oil and gas sector.

Report Coverage

The research report offers an in-depth analysis based on Application, Type, Services, and Geography. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.

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Future Outlook

  1. Continued Growth: The India Oilfield Services market is poised for sustained growth, driven by increasing domestic energy demand and government initiatives to boost domestic oil and gas production.
  2. Technological Advancements: Future outlook includes further integration of advanced technologies such as digitalization, automation, and data analytics to enhance operational efficiency and reduce costs.
  3. Expansion in Offshore Activities: With depleting onshore reserves, there will be a significant focus on expanding offshore exploration and production activities, offering opportunities for specialized oilfield services companies.
  4. Regulatory Compliance: Companies will need to adapt to evolving regulatory frameworks, focusing on compliance with stringent environmental standards and safety regulations.
  5. Market Consolidation: The market may witness consolidation as larger players seek to strengthen their market position through acquisitions and strategic partnerships.
  6. Emphasis on Sustainability: Expect increased emphasis on environmentally friendly solutions and sustainable practices across all phases of oilfield operations.
  7. Skilled Workforce Development: Addressing the skilled workforce gap will remain a priority, with investments in training and development initiatives to meet the industry’s specialized talent requirements.
  8. Diversification of Services: Companies are likely to diversify their service portfolios to offer integrated solutions catering to the evolving needs of clients and market dynamics.
  9. Collaboration and Innovation: Collaboration between industry stakeholders and a culture of innovation will be crucial for addressing complex challenges and driving continuous improvement.
  10. International Expansion: Indian oilfield services companies may explore opportunities for international expansion, leveraging their expertise and capabilities in global markets.

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Frequently Asked Questions:

What is the current size of the India Oilfield Services market?

The India Oilfield Services market is projected to grow from USD 707.18 million in 2024.

What factors are driving the growth of the India Oilfield Services market?

Key drivers include increasing domestic demand for oil and gas, government initiatives to boost domestic oil and gas production, technological advancements like digital solutions and automation, and the exploration of unconventional resources.

What are the key segments within the India Oilfield Services market?

The market is segmented based on application into onshore and offshore activities, and by type into equipment rental and field operation services.

What are some challenges faced by the India Oilfield Services market?

Challenges include intense competition leading to price sensitivity, limited domestic technology and expertise, and the high cost of importing advanced technologies.

Who are the major players in the India Oilfield Services market?

Major players include Schlumberger India Technology Centre Private Limited, Asian Energy Services Limited, Halliburton India Operations Pvt. Ltd., Baker Hughes Oilfield Services India Private Limited, and Oil States Industries (India) Private Limited.

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