Oil and Gas Surface Rental Equipment Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global Oil and Gas Surface Rental Equipment market reached a value of about USD 3.9 billion in 2021. The industry is projected to grow at a CAGR of around 11% in the forecast period of 2022-2027 to reach a value of about USD 7.3 billion by 2027.

The global Oil and Gas Surface Rental Equipment industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The need for a cost-effective process to carry out drilling operations is driving the industry’s expansion. North America is the highest category spender by region, causing the demand for the Oil and Gas Surface Rental Equipment industry.

Industry Definition and Segmentation

Oil and gas surface rental equipment refers to renting equipment for the extraction and drilling of oilfields for a set amount of time. Drilling, pressure, and flow equipment, pumps and valves, tubes, drill bits, wireline tools, blowout preventers (BOP), artificial lift systems, and mud pumps are available for hire. In comparison to purchases, renting is more cost-effective because it requires less acquisition and maintenance. The Oil and Gas Surface, Rental Equipment industry report comprises segments by type (Pumps and Valves, Tanks, Storage and Silos, Lines, Manifold, Transducer, Compressor, Blender and Light towers, CAD, Trailers, and Lab) and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America).

The North American Region is Driving the Growth of the Industry

North America is the largest market in the industry as the United States holds a significant share in the oil & gas rental segment. Due to increased shale oil exploration activity in the region paired with rising off-shore rig counts and oil and gas production operations in the United States, the market is likely to witness growth. With the influx of new participants into the rental market, E&P firms now have a vast pool of global and regional vendors to pick from in the U.S. market.

The market is being driven by the increased demand for crude oil and natural gas for energy and power needs worldwide. As a result, governments worldwide and a wide range of corporate players are increasingly using rented oilfield equipment to carry out projects that benefit their economies. Oil corporations are looking for more cost-effective ways to carry out their operations, thus resulting in increased demand in the industry.

However, Volatile oil and gas prices will likely hinder the market demand.

Best Procurement Practices

The global Oil and Gas Surface Rental Equipment industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major worldwide Oil and Gas Surface Rental Equipment regions, such as engagement models and contract terms and buyer and supplier negotiation levers, among others.

Category Management Studies

Owing to technical advancements, oil and gas exploration is developing. The oil rig has made horizontal drilling, deep drilling, and unconventional hydrocarbon exploration economically viable. All items and services linked with the upstream energy business are petroleum equipment and services. Drilling, well completions, well logging, well intervention, and many other services are included. Drilling activities are usually contracted to an oilfield services contractor by oil and gas operators. Oil and gas equipment aids in the drilling of oil and gas wells and provides a complete solution for the manufacture, repair, and maintenance of drilling tools and equipment.

Developments in the Sector, Further Propelling the Procurement of Oil and Gas Surface Rental Equipment

The industry is propelling due to the increasing developments in the sector. Technology improvements such as introducing RFID-enabled equipment that aids in optimising drilling and hole-cleanup procedures are likely to drive up the market demand. The expanding volume and variety of data collected during the life of an oilfield and data visualisation and integration software in mature oil field secondary and tertiary recovery is furthering the market growth. Machines with new characteristics, such as horizontal and directional drilling that may be attached with a mud motor and Universal Bottom Hole Orientation (UBHO) equipment, are also available from equipment manufacturers and rental service providers. As a result, the industry is likely to augment.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Oil and Gas Surface Rental Equipment Industry Report

• Schlumberger Limited
• Halliburton Company
• Baker Hughes Company
• Weatherford International plc
• Superior Energy Services Inc.

Market Landscape

The market for oilfield equipment rental services is somewhat fragmented, and industry leaders are making enticing investments in oil and gas exploration drilling activities.

Key Initiatives by Companies

• Baker Hughes, a G.E. firm, won a contract with i3 energy for its Liberator drilling operation in July 2019. BHGE is expected to deliver directional drilling fluids, bottlenecks, formation evaluation activities, and the wellhead under contract conditions.
• Oilfield service provider TechnipFMC and major oil firm Chevron signed a five-year surface technology framework deal in November 2018. TechnipFMC will deliver surface wellhead equipment and services in the United States and Canada under contractual terms.