Oilfield services market - challenges and prospects

02.12.2024       

Crises in the oilfield services industry are not a new phenomenon. Since 2002, they have occurred regularly, accompanied by drops in oil and gas prices, which gives rise to panic among market players. However, despite these difficulties, production drilling has shown steady growth since 2008, showing that even in an unstable economic situation, the industry is able to adapt and develop.

The period from 2022 to 2024 is different from previous crises. There have been significant changes in oil and gas flows, which has led to a decrease in sales to traditional Western markets. However, these losses have been offset by increased supplies to other regions of the world. Such dynamics underline the flexibility and ability of the industry to quickly respond to external challenges.

Oil exports in 2021 and 2023 remained virtually unchanged, indicating stable demand for this resource. At the same time, liquefied natural gas (LNG) has taken a significant place in the export structure. The impact of American LNG on the world market remains uncertain, but it is obvious that it will play an important role in the future development of the industry.

Despite all the difficulties, the overall picture in the oil and gas service industry remains optimistic. The main challenge for it is the need to import substitution of technologies and equipment. This process has already been launched and is actively developing. However, since 2023, the issue of a shortage of qualified personnel has become acute, which has become a serious problem for many companies.

One of the reasons for the personnel shortage was the demographic pit of the 1990s, which led to a decrease in the working-age population. There is also a significant gender imbalance in the oilfield services industry, which further complicates the situation. The personnel shortage is felt not only in the oil and gas sector, but also in the manufacturing industry.

Companies are forced to look for new ways to replenish the personnel reserve. One of the strategies has become the active attraction of young specialists and the training of our own personnel. The possibility of labor migration from neighboring countries is also being considered. It is important to note that the use of domestic equipment and the conduct of pilot industrial work with customers help to partially solve the problem of dependence on foreign suppliers.

Thus, despite numerous challenges, the oilfield services industry continues to demonstrate resilience and readiness to adapt. Issues of import substitution and personnel provision remain key tasks for the near future, the solution of which will determine the further development of the sector.