Crude Oil Prices Likely to Jump to USD55 per barrel

The increase in crude oil prices would significantly enhance the drilling and production activities resulting in the growth of Iran oilfield service market in the coming years

Iran: According to the Iranian oil minister, the government expressed optimism for the increase in the crude oil prices to USD55 per barrel if an agreement is reached during the upcoming OPEC meeting and if non-OPEC producers co-operate on the same. The Organization of the Petroleum Exporting Countries has been looking forward towards finalizing its first deal to limit oil output since 2008, with majority members prepared to offer Iran significant flexibility on production volumes.

TechSci Research depicts that on the back of large scale oil & gas exploration and production activities being undertaken in the country, the market for Iran oilfield services are anticipated to grow considerably in the near future. Oilfield services help in making oil & gas exploration and production (E&P) activities smoother, and are utilized throughout the life of the well, beginning from exploratory & appraisal drilling to post drilling phase. Services such as Drilling Services, Mud Engineering Services, Wireline Services, cementing services, etc., are used for smoothening the drilling process, by eliminating waste and enhancing the oil recovery process.

According to a released report of TechSci Research, “Iran Oilfield Services Market By Application, By Type, Competition Forecast and opportunities 2011 - 2021”, oilfield services market in Iran is forecast to grow at a CAGR of more than 13% during 2016-2021, on account of anticipated increase in oil & gas E&P activities. On account of removal of sanctions, advent of foreign players and anticipated rise in capital inflows, oilfield services market in Iran is expected to grow by 2021. Further, as a result of signing of a Joint Comprehensive Plan of Action (JCPOA) with P5+1 nations, in 2015, Iran is cutting down on its nuclear enrichment activities and is focusing towards increasing its crude oil production. This in turn is expected to result in augmented demand for oilfield services during 2016-2021.