Almost all segments in the oilfield service sector showed gains on a quarterly basis in the second quarter of 2019, according to a recent analysis by Rystad Energy. The only exception was the land drilling segment, where revenues fell by 7% compared to the previous quarter. The decline in land drilling is driven by decreased revenues in the United States where the drilling activity is slowing down. Industry players see increased oil price uncertainty and E&P spending cuts underlying the slowdown.

While land drilling and well stimulation activities are contracting, the subsea market is on the rise. Subsea equipment and SURF – subsea, umbilicals, risers, and flowlines – are the best-performing segments, with growth rates exceeding 10% on a yearly basis in the second quarter of 2019. This is the second quarter with positive year-on-year growth, following several years of decline, signaling improved market conditions. We expect 2019 to be the first year with subsea revenue growth since 2014.