Halliburton continues to lead worldwide market share for cementing services with approximately 37% market share (down from 41% in 2016) followed closely by Schlumberger with 30% market share (down slightly from 31% market share in 2016).
Kimberlite Oilfield Research recently updated the 2017 cementing services report based on interviews with 279 cementing customers worldwide. The 2017 report is a follow-up to the 2016 report based on interviews with 270 customers worldwide.
The US land cementing services market is the most fragmented market evaluated in the report with approximately 24 different cementing services suppliers being cited as used among the oil & gas operators interviewed. Halliburton and Schlumberger represent a combined market share of approximately 58% in the US land market and the balance 42% market share is comprised by many smaller independent cementing services suppliers of which BJ Services represents the largest of the independent suppliers with approximately 14% market share.
Competitively, the smaller independent cementing services suppliers are viewed as delivering the best value in the US land market among the oil & gas operators interviewed.
Internationally, the market for cementing services tightens up with Halliburton and Schlumberger representing a combined market share of 74% of the international land market followed by Baker Hughes with 11% market share.
Competitively, Halliburton is viewed as having better trained field personnel than that of Schlumberger in the international land market but otherwise the performance levels between Halliburton and Schlumberger are overall very close to one another based on feedback from the international oil & gas operators.
Offshore, the market for cementing services further tightens with Halliburton and Schlumberger representing a combined 88% market share of the worldwide offshore market and representing a combined 96% market share of the worldwide deepwater market.
Competitively, Halliburton outperforms Schlumberger in the worldwide offshore market in equipment quality & reliability and competency of field service personnel and Baker Hughes is viewed as the low-cost alternative to both Halliburton and Schlumberger among the offshore oil & gas operators interviewed.
The most recent acquisition of O-Tex by C&J Energy Services represents the competitive nature of the US land cementing services market and it is reasonable to expect potential further consolidation of the many smaller suppliers in the US land market to improve competitive positioning for not only the cementing services market but also for the growing hydraulic fracturing and intervention services markets.
Internationally and offshore, the markets remain dominated by Halliburton and Schlumberger and Baker Hughes is well positioned as the value based alternative to grow market share if they are able to consistently execute and perform in these two critical market segments.
Details of the report are available at Kimberlite International Oilfield Research.