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Services and Mechanical Engineering for Oil and Gas: Are Industry’s Foundations Secure?

Services and Mechanical Engineering for Oil and Gas: Are Industry’s Foundations Secure?

The condition of service companies causes serious concern in the industry. A good deal of work depends on them, so in this respect their comparison with the foundations of the oil and gas building will not be an exaggeration.

The question is how secure they are today. It is not only because of Western sanctions and dependence on foreign technology, even though this subject also needs special consideration. What is most intriguing is, after all, the main direction the Russian oilfield services industry will take.

The industry is at a crossroads and even vertically-integrated oil companies differ in their approaches.

The primary direction for major oil corporations was seen in disposing of service assets in the 1990s. Now, however, there are advocates of a complete about-turn.

Rosneft has been buying up service companies for several years now, aggressively. Concentration is on the rise in the sector. But Lukoil and Gazprom Neft believe that this destroys the market. Such an approach may lead to monopolisation and thus, eventually, to decline in the quality of services and growth in their price. /p>

What line will prevail? It is the question we will think over in our report where you will find detailed coverage of the following subjects:

  • Structure and key financial indicators of the oilfield services market

    • Fastest growing market segments and biggest problems
    • Growth in horizontal drilling and collapse in seismic surveys and geophysics
    • Main structural transformations of the market and their causes
  • Key industry players by leading segments

    • Development and exploratory drilling
    • Vertical and horizontal drilling
    • Enhanced recovery, including hydraulic fracturing
    • Well intervention and workover
    • Geophysics and seismic surveysà
  • Non-residents in the sector

    • The question arose after 2014 if foreigners were going to leave the Russian oilfield services market.
    • The government adopted urgent plans for import substitution; critical technology lists were approved. The situation has come to be a paradox in its own way: the plans for import substitution in the oilfield services industry have basically failed, but then non-residents are totally in no hurry to leave the market and even attempt to increase their presence.
    • Besides, the presence of Chinese companies is more and more noticeable in the sector, especially as suppliers of oil and gas equipment.
  • Destiny of independent players

    • Hardships of survival under pressure from vertically-integrated oil companies, Western giants, and Chinese suppliers
  • Government regulation of the oilfield services industry

    • Ideas to create a national service company
    • Destiny of Rosgeologia; special investment contracts; and unsuccessful attempts to support independents
    • Main innovations in legislative regulation of the sector
  • Medium-term forecast of developments

Contents of the report:

Introduction 3
1. Production Performance in Russian Oilfield Services Industry 5
2. Key Players on Russian Oilfield Services Market 16
2.1. Drilling market 22
2.2. EOR market 30
2.3. Well intervention and workover market 34
2.4. Geophysics and seismic surveys market 36
3. Russian Oil Majors in Oilfield Services Market Affected by Sanctions: Two Camps, Two Strategies 39
3.1. Oil major with in-house oilfield services: Rosneft, new market giant 40
3.2. Oil majors relying on third-party contractors in oilfield services 43
3.3. Sanctions and the birth of a new Star of Russian mechanical engineering for the oil industry 46
4. Destiny of Independent Service Companies/td> 51
5. Government Policy on Oilfield Services 61
6. Medium-term Forecast 69
Date of release: August 13, 2019

If you are interested to obtain please contact » Elena Kim

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Analytical series “The Fuel and Energy Complex of Russia”:

Outlook for Russian LNG Industry
Russian Energy and West One Year after Ukraine Conflict Began: Are There Connections Still?
Green Agenda in Russia during Bitter Conflict with West
After February 2022 the agenda was radically rewritten. Western companies began leaving Russia en masse, economic relations with the West were drastically reduced, and the Russian economy began to be pushed violently from the global economic space, hemmed in by sweeping sanctions. All that was, to put it mildly, not the best background for talking about ESG. Especially because tasks of survival and stability under unprecedented pressure became the priority in the economy. In late 2022, however, attempts to reanimate the ESG agenda already became obvious. The message is put across insistently that it is important to Russia regardless of the foreign policy situation. While earlier the “green pivot” was seen as an opportunity to attract Western investors and their technological solutions to Russia, now Keynesian reliance on domestic manufacture is discussed.
Oil and Gas Sector Regulation in 2022 and Prospects for 2023
Gazprom at the Forefront of Economic and Political Battles with Europe
Gazprom is being actively thrown out of the market. Its annual supplies to Europe have shrunk from the previous 150 billion to 65 billion cubic metres of gas. European officials assure that they have already learnt how to live without Russian gas, so they will bring its purchases down to but nominal values in 2023. Their main hope is liquefied natural gas. Today the EU must make a crucial decision: whether it has passed the point of no return in gas business with Russia and whether it is certain that its economy will endure without supplies of Russian pipeline gas. Or, on the contrary, Europe will realise after all that the gas balance will not be achieved and the payment for so headlong a rush for LNG will be disproportionate. Assessment of the potential volume of LNG that will appear on the market before the end of the current decade will be the most important factor for making the decision.

All reports for: 2015 , 14 , 13 , 12 , 11 , 10 , 09 , 08 , 07

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