Growing energy demand has resulted in increasing E&P activities. This trend is expected to drive global well testing services market over the forecast period. Well testing monitors the reservoir’s capability to produce hydrocarbons such as oil, gas and condensates which finds multiple applications in permeability & skin interpretation, formation pressure measurement, reservoir characterization and fluid characterization. Growth of these application segments in oil & gas industry is anticipated to fuel well testing services demand over the next six years. Increasing requirement for high precision measurement while drilling (MWD) and reservoir condition measurement instruments are further estimated to fuel market growth over the forecast period. Volatile crude oil prices are anticipated to generate lower profits margins to the E&P companies resulting in declining drilling activities. This is expected to have negative effect on the market growth over the next few years.
On the basis services, well testing services market has been segmented into down-hole testing, real time well testing, reservoir sampling & analysis and surface well testing. Real time well testing was the leading service segment in 2013 and is expected to remain the largest sector over the forecast period owing to optimized & stabilized results. Down-hole testing services utilize packers used for the measurement of flow rates and are the second largest segment currently and are projected to witness rapid growth in near future.
North American dominated the well testing services market in 2013 and is expected to remain the largest consumer over the forecast period. Increasing E&P expenditure and rising shale gas activities particularly in the U.S. and Canada is expected to enhance demand for these services over the next six years. Middle East and European markets are anticipated to register high growth in near future on account of increasing offshore and onshore drilling activities. Asia Pacific is also projected to witness above average growth owing to increasing E&P activities in countries such as China, Indonesia, Malaysia and India. Increasing drilling activities in newly discovered oil fields particularly in Nigeria, Libya and Brazil are estimated to create immense opportunities for well testing services market in near future.