Slickline Service Market: Current Analysis and Forecast (2022-2028)

Slickline is referred to as the cable or single-stranded wire which is used to throw down a well to retrieve or deliver material from the downhole. It consists of several hardware components including plugs, gauges, valves, and other tools as a part of the downhole tool recovery. Slickline is used for the maintenance, flow completion, downhole debris removal, and placement of the hydraulic packers by using the sealing plugs. In recent times, the slickline service market has witnessed significant demand in the market owing to the increasing demand for oil and gas coupled with the growing population and rapid urbanization. Also, the growing number of onshore oil and gas field discoveries associated with the recovery of the crude price is predicted to support the market growth in the near future. Moreover, the increasing demand for oil and gas for transportation, automotive, and industrial heating among many others is expected to propel the market for the slickline service market. For instance, according to the International Energy Agency, the global consumption of oil was rise by 5.4 million barrels per day in the year 2021 and is expected to increase by additional 3.3 million barrels in the year 2022.

The Slickline Service Market is expected to grow at a steady rate of around 3% owing to increasing demand for energy coupled with the increasing investment for new oil & gas field development & exploration along with the rapid urbanization and growing population around the world. Major companies in the market offer slickline service product with technologically advanced features. For instance, Wilitec, manufacture and provide lightweight wireline winch unit with a power pack, control unit, and hydraulic drive system that can use for both onshore and offshore operations under extreme pressure condition.

Based on the location of deployment, the market is segmented into onshore and offshore. The onshore segment is expected to witness significant market growth during the forecast period owing to the presence of the majority of the drilling site on the onshore location. Approximately, 70 percent of the oil and gas field is located at the onshore location. Also, the new oil and gas field discoveries, drilling of unconventional oil & gas fields, depletion of conventional resources, and increasing investment in the onshore segment are propelling the growth of the onshore segment. For instance, in 2021, Saipem company was awarded a new onshore drilling project for the Middle East and South America worth USD 70 million. However, the increasing demand and depletion of conventional oil and gas resources will propel offshore oil & gas exploration along with deep-water & ultra-deepwater exploration and subsequently grow the market for the offshore slackline service market as well.

Based on operation, the slickline service market has been classified into pulling tools, downhole bailers, gauge cutters, bridge plugs, and others. The pulling tools segment shows significant market growth for the year 2021 and is expected to remain the same during the forecast period as they are utilized to retrieve seated components for instance plug prong. Pulling tools is a universal core that allows the same tools to be available to retrieve devices with the fishing neck having different reaches or lengths and could be converted from shear down or shear up without the requirement of any additional parts.

For a better understanding of the market adoption of the All-Terrain Vehicle industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America is anticipated to grow at a substantial CAGR during the forecast period. This is mainly due to the increasing drilling activities in the region. Also, the increasing shale oil and gas oil coupled with technological advancements such as the implementation of AI, ML, big data, hydraulic fracking technology, and digitalization of the oil wells in the region are propelling the demand for the slickline service in the region. According to a leading research firm, the USA Permian Basin condensate & crude oil capacity is 5,055 mbd, and natural gas capacity is approximately 19,891 mmcfd in the year 2022. The drilling and exploration activities in the Permian Basin support the growth of the slickline service in the region. Additionally, the increasing number of new oil and gas fields in the region and growing investment in oil fields are expected to create the demand for slickline service equipment. For instance, 88 Energy an Australian oil company discovered the new oil field NPR-A or Merlin-1 in Alaska with the capacity of 3.4 billion barrels of oil equivalent. Furthermore, the supportive government initiative in the region also supports exploration activities and subsequently grows the demand for oil and gas exploration activities along with the demand for slickline service in the region. For instance, the permission to use diesel oil for hydraulic fracturing and allowance of the underground injection of waste fluids extracted from oil and gas well as per the defined standard among other.

Some of the major players operating in the market include: Archer Ltd., AOS Orwell Ltd., Schlumberger Ltd., Wellservices BV, Weatherford International Plc, Halliburton Co., Expro Holdings UK 2 Ltd., Baker Hughes Co., Pioneer Energy Service Corp., and Reliance Oilfield Services.