The coal seam gas (CSG) boom and the construction of three liquefied natural gas (LNG) pipelines in the vicinity of Queensland, New South Wales and South Australia are spurring the demand for onshore oilfield equipment such as rigs and tools in Australia. Since the cost of purchasing and maintaining such equipment is extremely high, energy companies are turning to rental equipment providers that deliver end-to-end services.
New analysis from Frost & Sullivan, Oil and Gas Onshore Oilfield Equipment Rental Market Australia, finds that the market earned revenues of $48.7 million in 2013 and estimates this to reach $79.1 million in 2020.
"Queensland and Western Australia will be key markets in the long term, driven by the growing need to ramp up CSG-LNG production capacity," said Frost & Sullivan Energy and Environment, Research Analyst Izwan Rasul. "With Western Australia estimated to hold 280 trillion cubic feet of shale and natural gas in the Canning and Perth Basins, the future for oilfield equipment rental providers remains bright."
While potential is immense, strict standards to decrease the environmental and the social impact of fracking are slowing down the pace of equipment adoption. The risk of water contamination while drilling CSG reservoirs too has raised significant environment and health concerns in the country. In addition, the increased construction cost for LNG expansion may result in project delays or cancellations, affecting oilfield equipment rentals.
To sustain business in an increasingly competitive market, where drilling services companies are also expanding into the equipment rental business, rental firms must ensure reliable services. Oilfield equipment rental enterprises must further improve their logistics advantage to cater to customers that expect immediate equipment ship-out to remote areas with minimal lead time.
"Providing a one-stop solution that includes service and repair facilities will help deliver a strong proposition to prospective customers preference in sourcing from suppliers with a wide range of equipment types and services," suggested Izwan . "Offering additional engineering services, such as the structural analysis of wells as well of torque and drag analysis for downhole tools, will add to rental companies competitive advantage in the Australian market."
If you are interested in more information on this study, please send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com.
Oil and Gas Onshore Oilfield Equipment Rental Market Australia is part of the Energy & Power (energy.frost.com) Growth Partnership Service program. Frost & Sullivans related studies include: Global Subsea Equipment Market and Engineering, Procurement and Construction (EPC) Opportunities in the Asia-Pacific LNG Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Oil and Gas Onshore Oilfield Equipment Rental Market Australia / P7C8-14
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