Asia-Pacific oilfield services market is anticipated to grow at
a steady pace during the forecast period, 2024-2028 owing to the rise in the demand for cutting-edge
technology, tools, and equipment to improve the efficiency of exploration and
production activities in onshore and offshore locations.
Oilfield service (OFS), which mostly affects
offshore assets, is essential to the upstream service of the oil and gas
sector. All goods and services needed for the production and exploration
process in the upstream industry are included in the oilfield equipment and
services category. The companies in this sector provide manufacturing,
maintenance, and equipment repair services for the production, transportation,
and storage of oil. Additionally, locating energy sources, drilling and
formation evaluation, managing energy data, geological sciences, and many other
services are taken into account for successful field operations.
Increasing Oil & Gas Investments
By 2050, the demand for 38.8 million b/d of oil products is
anticipated to increase in the Asia Pacific region. The region's rapid
expansion, notably in countries such as India, China, Indonesia, and Japan, can
be attributed for the rise in the demand for oil-related items. For instance,
over the next ten years, India intends to nearly quadruple its oil refining
capacity to 450 MT to fulfil the growing demand for domestic fuel. India had
23 refineries as of April 2022, with a total capacity of about 251.2 MMTPA, 19
of which were public, 3 private, and 1 joint venture. Refinery capacity
utilization during 2020–21 is 88.8%. Indian Oil Corporation (IOC) is the
largest refinery in the nation with an 80.6 MMTPA capacity. Over 70% of the
total Indian refining output was
supplied by the top three firms, IOC, Bharat Petroleum Corporation (BPCL), and
Reliance Industries (RIL), at a CAGR of 3.2% for refining capacity from 2011–12
to 2020–21. In addition, between 2021 and 2022, 254.3 MMT of petroleum products
were produced in India, representing a steady increase in both production and
consumption and will continue during the forecast period..
Additionally, Petronas signed two contracts in December
2021 relating to upstream investment in Malaysia. A memorandum of understanding
(MoU) was reached with Petroleum Sarawak Berhad (PETROS) regarding a gradual
increase in Sarawak's gas supplies, eventually increasing the allotment to 1.2
billion cubic feet per day. Another one is a business arrangement to expand
Sabah's oil and gas sector with the state government of Sabah. The number of
activities in the area has increased as a result of several offshore drilling
projects in Australia, Malaysia, and Indonesia, further promoting the demand
for oilfield services. Thus, it is anticipated that increased exploration of
unconventional resources, new investments in the oil and gas sector, and the
stability of crude oil prices will boost the demand for oilfield services in
the Asia-Pacific region during the forecast period.