The world oilfield equipment market is projected to increase 5.0 percent per year through 2012 to $70 billion. This will represent a significant deceleration from the 2002-2007 pace, when persistently high global oil and gas prices and rapid economic development in China and India combined to create a highly conducive environment for worldwide oil and gas drilling activity. The global economic slowdown and reduction in crude oil prices as of late 2008 will most likely also dampen oil and gas equipment sales for much of 2009. Nevertheless, growth should remain strong between 2010 and 2012, as heavily populated China and India continue to recover from a temporary slowdown and post robust economic growth.

Rapid growth expected in developing countries
The most rapid growth in oilfield equipment demand through 2012 will occur in the rapidly growing oil producing countries of the developing world, including emerging oil suppliers in West Africa, Latin America and southeast Asia, which do not presently comprise particularly large markets, but hold significant potential. In addition, ongoing modernization of the vast Russian crude oil complex -- as well as those of other former Soviet states such as Azerbaijan and Kazakhstan -- will open up considerable opportunities for suppliers of oilfield machinery and equipment going forward. Iraq’s oil and gas sector will also register strong growth as the country recovers from war.

By contrast, maturity and declining output of fields located in the US, Mexico, the UK, Norway and elsewhere will work to suppress oilfield equipment markets in these countries, although there will be some opportunities in repair/maintenance and enhanced oil recovery activities. Finally, any number of countries in both the developed and developing worlds hold favorable prospects for natural gas production, which will stimulate some demand for oilfield machinery and equipment. Additionally, if prospects for oil and gas remain favorable, drilling activity for coal bed methane (CBM) and oil sands will continue to expand, especially in Canada, the US, Venezuela and China.

In stark contrast to demand, oilfield equipment manufacture is concentrated heavily in the industrialized nations of North America, Western Europe and the Asia/Pacific region, which boast signifi- cant expertise in higher value-added industrial machinery production capability. The US is by far the major global supplier, with China also becoming important. Although multinational firms that dominate the world oilfield equipment industry will continue to incrementally shift manufacturing capacity to fastgrowing developing markets, most production will continue to occur in more industrialized nations.

Study coverage
This new industry study, World Oilfield Equipment, presents historical data plus forecasts for 2012 and 2017 for oilfield equipment supply and demand, as well as market by product, in six regions and 23 countries. The study also considers market environment factors, evaluates company market share and profiles 33 global competitors.
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