Impact of COVID-19 on the Global Oil Field Equipment Market
COVID-19 has spread across the majority of countries across the globe and has significantly impacted the growth of businesses around the world. The pandemic has negatively impacted the oil & gas industry, and thus the global oil field equipment market. The outbreak has caused a massive slowdown in the global economy. The sharp fall in oil prices and the reduction in demand for crude oil due to the pandemic has drastically impacted the growth of the market, reducing the need for oilfield equipment. Also, these changes in the supply and demand for oil & gas due to COVID-19 are estimated to decrease the number of oil wells, which in turn, is likely to hamper the growth of the oil field equipment market. The current crisis has led to a decline in exploration activities in the oil & gas sector. Besides, due to the COVID-19 pandemic, several EPC projects have also witnessed an indefinite halt that has resulted in the diminishing requirement for excavation and drilling services. The economic effects of this trend are likely to be majorly evident in the Middle East region. Recovery of oil prices, and field development and oil exploration activities, is expected to drive the growth of the global oil field equipment market.
GLOBAL OILFIELD EQUIPMENT MARKET VALUE (2014–2020)
Globally, North America holds the largest market share for oil field equipment. Factors responsible for the growth of the market in the region include the increasing rock study and exploration activities for oil sand, shale oil, and carbonate rocks. The gradual lifting of the lockdowns in North American, as well as APAC countries, is likely to help in the resumption of exploration activities, which is estimated to drive the growth of the market.
Source: Secondary Sources
Source: Primary Experts, Secondary Sources and MRFR Analysis