Booming exploration and production is expected to boost the global value of oil field services by 72 percent over the next five years, according to GBI Research.
Total value will reach $213 billion by 2017, according to the firm’s forecast, up from $152 billion in 2012.
GBI, a business research firm, said the global demand for energy, especially in the emerging economies of Asia and South America, will drive the increase.
It defined oil field services as any activity or service related to finding, evaluating, developing, producing or closing down oil and gas resources.
According to GBI, which is based in London, higher prices for crude oil and natural gas have made producers more willing to drill in remote places, including in deep and ultra-deep locations offshore. Innovative recovery techniques also are driving oil companies to return to depleted or mature reservoirs, contributing to total expenditures, according to GBI.
The report divides the oil field services industry into three segments: exploration and evaluation, drilling, and completion and production.
Completion and production generates the most revenue. GBI predicts it will generate $148 billion in revenue in 2017, up from $105 billion in 2012.