The Middle East well intervention market is expected to reach US$2.4 billion by 2018, up from $1.37 billion in 2013, with a CAGR of 11.9%, according to a Research and Markets report.
The Middle East, with 80.3 trillion cu/m, is home to 43.2% of the total natural gas deposits in the world. Proven natural gas reserves by the end of 2013 stood at 185.7 trillion cu/m, 0.2% higher than the previous year.
The International Energy Agency (IEA) has, however stated that the demand for natural gas will exceed its production from Middle East countries by the year 2019. Estimates also indicate that gas production will increase from 582 billion cu/m in 2013 to only around 658 billion cu/m through the end of this decade.
Oil and gas companies in the region are increasingly looking for local content. However, typical issues such as lack of governance, uncoordinated strategies and lack of qualified strategies are pulling the market back.
With the industry in this region experiencing a period of major capital investment, Mordor Intelligence predicts that a decent amount of it goes towards well intervention services to achieve enhanced oil recovery from the fields.