oil well cement Market

The global oil well cement market is expected to grow at a steady rate during the forecast period and primarily due to the growing E&P of unconventional reserves and the increasing drilling activities in Asia-Pacific. However, the harsh conditions in oil and gas wells are expected to restrain the growth of the global oil well cement market during the forecast period. The advancements in oil well cement is expected to create an opportunity for the market players operating in the global oil well cement market.

The increasing global energy demand is leading to the depletion of conventional oil and gas reserves, resulting in the focus on E&P of shale oil and other unconventional resources. As per the US Energy Information Administration (EIA), global natural gas production from shale resources accounted for 42 billion cubic feet per day (Bcf/d) in 2015 and is expected to reach 168 Bcf/d by 2040. Moreover, shale gas production is expected to hold nearly 30% of the world’s total natural gas production share by 2040. For the various countries planning emission reduction, the use of shale fuel is an opportunity to ensure energy security while reducing dependence on conventional fuels. Several key countries are considering increasing investments in E&P for natural gas from shale resources to support the export requirement to bridge the demand and supply gap of electricity. For instance, countries such as the US, Canada, China, Argentina, Mexico, and Algeria are projected to account for 70% out of the global shale production by 2040. In the US, oil and gas companies aim to increase shale production from 37 Bcf/d in 2015 to 79 Bcf/d by the year 2040. Thus, the growing shale production, especially in Argentina, China, and Mexico, is expected to increase the demand for oil well cement, which is used for cementing offshore and onshore wells during hydraulic fracturing and horizontal drilling activities. The E&P of unconventional reserves of tight and shale gas are expected to create the need for oil well cementing. Therefore, the growing E&P of unconventional reserves is expected to drive the growth of the global oil well cement market during the forecast period

Oil well cement is used for cementing of oil and gas wells during their E&P and is thus, subjected to extremely high temperature and pressure inside the wellbores. Oil well cement helps hold the casings in position and prevents fluid migration between the subsurface formations and the corrosion of casings. The strength of the oil well cement depends on various factors such as environmental conditions, time and conditions of curing, slurry design, and the use of additives. However, cementing under extreme pressure and temperature could lead to methane leakage and well collapse, making it difficult to drill oil and gas wellbores.

In order to overcome such challenges, many oil well cement manufacturers are investing in the development of new formulations of composite oil well cement to improve the setting process of oil well cement inside the wellbores. For instance, the study of the addition of nanomaterials in oil well cement has the objectives of enhancing the compressive strength, reducing the setting time, and increasing the density of oil well cement. Additionally, the pair distribution function (PDF) analysis and other techniques are being carried out to examine the changes in the structural properties of oil well cement under extreme conditions and in the presence of various corrosive chemicals. This helps in identifying the use of different additives in oil well cement and their behaviors during the setting processes. These developments are expected to enable oil well cement manufacturers to overcome the challenges faced by the use of oil well cement. Such advancements are expected to enhance the properties of the oil well cement. Hence, the advancements in oil well cement are expected to create an opportunity for the global oil well cement market players during the forecast period.

Cementing is an important process while drilling oil and gas wells as it provides effective zonal isolation, supports the casings, provides effective control of the tubing string tool, and creates effective bonding strength between the rock layers, tubing string, and cement slurry. Oil well cement is exposed to several harsh environmental factors during the operational processes in oil wellbores. Oil wellbores are subjected to severe conditions such as high temperature and pressure, which cause a decrease in the compressive strength and structure of the oil well cement. For instance, when the temperature exceeds, the structure of the cement changes, resulting in the volumetric shrinkage of the cement.

However, the cementing of the entire depth of the well cannot be completed in a single process. Thus, dispersants and retarders are used to prevent the premature hardening of cement. During the cementing process the cement must fill the annular space between the rock layers and tube casing. Poor management of hydrostatic head pressure and poor slurry design may also result in low bond strength of the cement. Moreover, during the life of oil well cement cracking, plastic deformation, and deboning may occur in the oil wellbores. Additionally, exposure of the cement to water desaturation may result in bulk shrinkage, leading to the debonding of the cement in the borehole wall. Improperly applied or aging cement in oil wellbore may result in cracking or shrinkage, leading to operational loss during the E&P of oil and gas. Hence, the harsh conditions in oil and gas wells are expected to restrain the growth of the global oil well cement market during the forecast period