Energy Services Industry to Reach $1 Trillion in 2023, Says Rystad Energy

Energy Services Industry to Reach $1 Trillion in 2023, Says Rystad Energy
Energy Services Industry to Reach $1 Trillion in 2023, Says Rystad Energy

Africa-Press – Lesotho. The global market for energy services companies will peak in 2025, reaching its highest revenue of $1 trillion owing to increased spending within the oil and gas industry as well as the branching out into other segments of the energy sector by service companies, according to a study published by energy market research firm, Rystad Energy.

Rystad Energy predicts the oil and gas services sector alone to account for over $920 billion per annum in revenue through 2028, driven by strong demand for services in the midstream sector including gas liquefication and re-gasification.

Between 2014 and 2021, the oil and gas services sector generated an average $740 billion in revenue per annum.

For the energy services sector, 2021 represented a turning point with strong rebound seen with record high oil and gas prices – enabling companies to increase investments by 20% – as well as production and associated energy service contract increases. Following this rebound, Rystad Energy predicts a promising 2023, with investments in oil and gas set to record a 13% increase, and in low-carbon energy to witness a 10% expansion in 2023, with revenue generation for energy services companies to also expand.

While a downturn cycle is on the cards for oil and gas, Rystad Energy foresees oilfield service companies to branch out into other industries across the energy sector, a trend expected to be the driving force of increased spending, thus providing a $1 trillion market for suppliers by 2025.

As such, Audun Martinsen, Partner and Head of Energy Service Research at Rystad Energy, stated that “All signs point towards 2022 being the start of another super cycle for the energy services sector.”

The study recommends energy services firms to diversify operations and take advantage of emerging opportunities in the geothermal, hydrogen, offshore wind, and carbon capture, utilization and storage sectors in order to take full advantage of the growth of the entire energy sector.

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