Current state of the Russian oil and gas service market

11.11.2024       

Speaking specifically about Russia, the situation looks quite optimistic. Oil production remains stable, and this year the production volume is expected to be 525 million tons. Although the revenue of mining companies is falling slightly in dollar terms, it is growing in rubles, which indicates positive dynamics within the country. It is also worth noting the growing investment in production and exploration, which will have a positive impact on the oilfield services market.

Particular attention should be paid to Western Siberia, which will remain the main center of oil production in Russia over the next ten years. Active drilling continues here, which supports the development of the oilfield services market.

It is also important to mention the factors influencing the cost of oil. The main ones among them are the development of technology and labor productivity. However, it is worth remembering that there is a significant personnel shortage, estimated at 40 thousand people, which is approximately 5% of the total number of workers in the industry.

The oilfield services market is also showing signs of growth, with the drilling segment making the main contribution to this process. It is interesting to note that the share of foreign services in the Russian market has decreased from 20% to 7% in 2023, which opens up more opportunities for domestic companies. Experts expect high activity in mergers and acquisitions, which may lead to further strengthening of the positions of national players.

Physical indicators in the industry show positive dynamics. Well drilling volumes continue to grow, especially due to the use of horizontal drilling. The exploration market is stable, although it needs additional investment. Demand for well workovers and hydraulic fracturing services is also increasing, indicating continued active development of the industry.