Dublin, March 25, 2021 (GLOBE NEWSWIRE) -- The "Oil & Gas Engineering Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The Oil & Gas Engineering Services Market is expected to register a CAGR of approximately 7% during the forecast period (2021 - 2026). The significant adoption of automation technologies in the Oil & Gas industry is the primary factor driving the adoption of engineering services in the industry.
The need to maximize efficiency and productivity, maximize uptime and return on assets, while minimizing the costs, due to the industry's dynamic nature, is expected to drive the adoption of engineering services in the industry.
Moreover, the oil & gas industry faces several challenges, such as declining oil prices, increasing penetration of renewable energy, electric vehicles, strict regulations on carbon footprint, the emergence of new hydrocarbon sources, and others. Hence, the companies are adopting strategic Industry 4.0 strategies to overcome these challenges.
The application of advanced technologies, such as analytics, machine learning, and many more, is expected to assist the oil and gas companies to analyze big data sets and provide meaningful insights. Hence, the adoption of engineering services in the industry is expected to rise during the forecast period.
The market is witnessing strategic collaboration amongst the market players, as a lucrative path towards expansion. For instance, Equinor, a Norwegian energy firm, awarded a contract to the Italian oilfield service company, Saipem, to provide engineering services globally. The agreement covers feasibility and conceptual studies, front-end engineering and design (FEED) work, detailed engineering and follow-on work, and R&D support. Through the partnership, Saipem will assist Equinor for its upcoming energy-related projects in the offshore, onshore, and floating wind sectors.
Key Market Trends
Downstream Segment to Exhibit Significant Growth
The Downstream sector of the Oil & Gas Industry includes the operations that occur after the production phase until the point of sale. Certain downstream operations include refining, processing, transportation, and sale of petroleum products. The increasing demand for safe and reliable operations, while minimizing the total cost of operations, is expected to drive the adoption of downstream oil and gas services in the industry.
Downstream oil and gas services play an important role in maximizing the refining process while impacting the desirability and marketability of the finished product. The downstream supply chain involves major operations such as effective database management, marketing by-products, and effective management of distribution.
Certain downstream oil and gas services include asset integrity management, industrial technical inspection, petroleum testing, refining and distribution, hazardous location equipment testing, and database software solutions. Some of them also include Enterprise Asset Management (EAM) solutions, which address core Asset Information Management and Plant Asset Maintenance Management applications.
In April 2020, Stress Engineering Services developed a sustainability scorecard with RPS to assess the emissions, carbon footprint and environmental impact of systems, sub-systems and facilities in the upstream, downstream and midstream sectors, in addition to manufacturing plants, power plants, wastewater systems, and processing systems.
North America Expected to Dominate the Market
North America is expected to dominate the Oil and Gas Engineering Services Market, due to the increasing number of oil & gas projects in countries such as the United States and Canada. The United States is one of the largest producers of crude oil and natural gas, according to the study in 2018, the United States accounted for approximately 14.1% to 20.0% of the global production of crude oil and natural gas respectively.
The country is witnessing a significant number of strategic collaborations as a lucrative path to grab the opportunities provided by the oil and gas industry in the region. For instance, in June 2020, US-based engineering companies, KBR and L&T Hydrocarbon Engineering (LTHE), signed a Memorandum of Understanding (MoU) aimed to build modular process plants for refinery and petrochemical projects. Under the terms of the MoU, KBR will provide license proprietary technology and engineering services such as solid acid alkylation technology (K-SAAT), solvent de-asphalting technology (ROSE), and catalytic olefins technology (K-COT). Additionally, LTHE will serve at the EPC provider.
Also, Canada is one of the largest producers of oil and gas globally, as the industry plays an important role in the country's economy. As per the Canadian Association of Petroleum Producers (CAPP), the oil production in the country is expected to reach 5.4 billion bbl/d in 2030, and oil sands are expected to account for 70.7% of the total production.
The competitive landscape of the Oil & Gas Engineering Services Market is expected to be moderately fragmented, owing to the presence of several global players, coupled with the emergence of new market players. The market players are aiming to form strategic partnerships and collaborations with various oil and gas companies globally to boost the adoption of engineering services in the industry and, in turn, enhance their market presence and strengthen the global footprint.
March 2020 - A global engineering consulting firm, Sargent & Lundy, acquired Summit Engineering Services, Inc., which will enable Sargent & Lundy to expand its presence in the oil and gas engineering sector, covering all verticals of up, mid and downstream petroleum and natural gas.
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Key Topics Covered:
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growing Adoption of Automation in the Oil & Gas Industry to Aid Growth of Design and Engineering Services
4.2.2 Ongoing Efforts to Enhance Cost & Operational Efficiency in the Oil & Gas Industry
4.2.3 Industry 4.0 Practices Such as Extended Reality & BIM 4D to Reduce TTM
4.3 Market Restraints
4.3.1 The Market is Susceptible to Fluctuations in the Oil & Gas Prices as Well as Other Macro-economic Changes
4.3.2 Operational and Compliance-related Challenges
4.4 Industry Stakeholder and Business Model Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis?
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Comparative Analysis of In-house and Outsourced Engineering Services Industry
4.7 Cost Breakdown Analysis
4.8 Comparative Analysis of the Adoption Trends Between Oil & Gas and Other Major Process Industries
4.9 Impact of COVID-19 on the Engineering Services Industry
5 MARKET SEGMENTATION
5.1 By Type
5.2.1 North America
5.2.4 Latin America
5.2.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles*
6.1.1 Stress Engineering Services Inc.
6.1.2 Toyo Engineering Corporation
6.1.3 Element Materials Technology
6.1.4 L&T Technology Services Limited
6.1.5 Arseal Technologies
6.1.6 Citec Group Oy Ab
6.1.7 WSP Global Inc.
6.1.8 Wood PLC
6.1.9 Tetra Tech, Inc.
6.1.10 Mannvit Consulting Engineers
6.1.11 QuEST Global Services Pte. Ltd.
6.1.13 Hatch Ltd.
6.1.14 Lloyd's Register Group Services Limited
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
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