Features Oil well cement prices to slowly rebound in 2021 14 December, 2020 SHARE THIS ARTICLE Share Tweet Post Email LATEST Environment Prometheus Materials produces cement with algae Startup innovates zero-carbon May 06, 2024 Markets & Competition FSA reconstitutes Raysut Cement Company’s Board of Financial regulator acts for company May 06, 2024 MOST READ Markets & Competition US cement market insights unveiled Explore the latest trends and figures in the US cement April 29, 2024 Equipment Continental Cement unveiled new DomeSilo at Davenport Enhancing cement storage with Dome April 30, 2024 Oil well cement prices to slowly rebound in 2021 According to CW Research's World Oil Well Cement Market Forecast 2026, oil well cement (OWC) prices saw a severe decrease in premium over OPC in 2016 as a consequence of the oil price crash, but are expected to recover in key markets, including the United States, Russia and Brazil, as oil prices rebound. Oil well cement has been traditionally traded at a premium to OPC. However, with the decline in drilling activity in 2015/2016 due to oil price crash, OWC prices were barely higher than OPC. Just as the market was recovering in the succeeding years, the onset of the pandemic once again resulted in OWC premiums showing a sharp contraction. ÔÇ£Over the forecast period we expect significant shale activity in North America, Argentina and Saudi Arabia to be the primary driver for OWC consumption. We expect oil well cement prices to be strengthened as the global economy rebounds from the economic carnage inflicted by the pandemic over the coming yearsÔÇØ, states Carolina Pereira, CW Group's Manager, Advisory & Research. OWC prices in the United States to rise over the next five years OWC price premium in United States is expected to recover in 2021, rising above 2011 and 2016 levels. Prices fell approximately 10 percent between 2011 and 2016, but are estimated to recover in 2021 and continue to rise further over the forecast period. The outlook for drilling activity in North America, of which the U.S. accounts for more than 75 percent of demand, is positive for the next five years due to an expected increase in oil prices as well as in shale drilling activity. Middle East oil producers to ramp up activity The Middle East and North Africa region is expected to see improvement in the number of wells drilled in the 2021-2026 period, mainly driven by shale well drilling that started in Saudi Arabia in 2018, as well as the development of Iran's onshore well drilling. The region's current oil well cement demand for high grade API OWC is mainly driven by Saudi Arabia, Kuwait, Iran and Iraq. New well drilling and extender use to drive oil well cement demand by 2026 The outlook for oil well drilling is expected to be positive in short term and to increase moderately over the next five years. After a decline in 2020, oil well cement demand is expected to see a recovery in 2021. In spite of this expected increase, drilling activity in 2026 is estimated to still register well counts significantly below the peak year of 2014. North America is expected to be the main driver for this global well count growth, since it accounts for close to 80 percent of the global well drilling in 2021. The World Oil Well Cement Market Forecast 2026 provides an in-depth, data-centric market assessment of the global API-certified oil well cement industry. The report includes a comprehensive bottom-up outlook, driven by indicators such as crude oil pricing, which provide an understanding of future drilling activity in terms of linear drilling distance and depth. The study breaks down oil well drilling activity and oil well cement demand by type of well (onshore, offshore, shale and geothermal applications), as well as by type of oil well cement (API oil well cement classes A, G, H and others). Use of extenders such as fly ash in oil well cementing is also considered and quantified. Find out more about the report here. Sign in Don't have any account? Create one SHOW Forgot your username/ password? Log in Terms Of Service Privacy Policy This site is protected by reCAPTCHA and Terms of Service apply Sign in as: User Registration * Required field Sign In Information Personal Information Agree Yes No Terms of Service:You consent that we will collect the information you have provided us herein as well as subsequent use of our platform to render and personalize our services, send you newsletters and occasionally provide you with other information. * Fields marked with an asterisk (*) are required. Register SaveCookies user preferencesWe use cookies to ensure you to get the best experience on our website. If you decline the use of cookies, this website may not function as expected.Accept allDecline allCW GroupNewsAcceptDecline