Rystad Energy expects the global market for oil and gas contractors to peak at US$1 trillion in 2025 and remain at high levels in the years thereafter. Thanks to strong growth in the midstream segment of the natural gas liquefaction, transportation and regasification industry, overall oil and gas spending will remain at an average of more than US$920 billion per year over the period 2022-2028.

While another downturn cycle in the oil and gas industry is likely after 2025, oilfield service providers should be able to balance out the downturn by expanding into other parts of the broader energy market, and in doing so, expand the overall target market for contractors. The key for suppliers will be to continue to look for clear opportunities in geothermal energy, hydrogen, offshore wind and carbon capture, utilisation and storage. Together with oilfield services, this expansion into other energy sectors could provide a $1 trillion market for suppliers by 2025 and continue for several years thereafter. A breakdown of the various service sectors for oil and gas suppliers shows that all sectors are set to grow in nominal terms, led by suppliers targeting equipment and materials, as well as those providing operations and maintenance services.