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SPOTLIGHT

Saudi oil field equipment rental market to grow 11pc

BURNABY, Canada, May 8, 2015

The market for oil field equipment rental in Saudi Arabia has been projected to grow at an average rate of 11.7 per cent until 2020, with the rise in crude oil prices to propel oil and gas exploration and production activities fueling the growth, according to a recent report.

The ‘Saudi Arabia Oil Field Equipment Rental Market Forecast and Opportunities, 2020’ report, published by TechSci Research, said the recent drop in the petroleum prices have considerably lowered the operational rig count across the globe.

Saudi Arabia, however, in an attempt to maintain its share in the oil market and considering the decline in crude oil prices to be short term phenomenon, has decided to maintain its current production rate and carry on with its oil and gas exploration and production activities as planned.

This is expected to continue boosting the demand for potential oil field equipment rental services in the country.

The kingdom’s rig count is expected to witness a continuing growth through 2020 on
account of anticipated increase in exploring shale reserves and investments made by the
national oil company Saudi Aramco.

Its eastern region accounts for a lion's share in Saudi Arabia's oil field equipment rental market, and the region's dominance is expected to continue over the next five years.

Drilling equipment rental segment accounts for majority of equipment rental revenues, followed by production equipment rental segment.

Karan Chechi, research director with TechSci Research, a research-based global management consulting firm, said: "Saudi Arabia's oil field equipment rental market is expected to grow owing to high investments made by the national oil and gas company Saudi Aramco in the development of the shale reserves in the country.

“Increase in the number of rigs would be the driving factor for oil field equipment rental market over the next five years.”

The report has evaluated the future growth potential of oil field equipment rental services market in the country and provides statistics and information on market structure, industry behavior and trends.

It is intended to provide cutting-edge market intelligence and help decision makers to make sound investment evaluation. Besides, the report also identifies and analyses emerging trends along with essential drivers, challenges and opportunities available in oil field equipment rental market in Saudi Arabia. - TradeArabia News Service




Tags: Saudi | Oil | growth | equipment | field |

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