Procurement Market Intelligence Report
Well Cementing Services
Sourcing Guide & Market Intelligence
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Well Cementing Services Global Overview
Definition
Summary
Well cementing is an essential part of the oil and gas well construction process; it is typically the last part of the process before pumping equipment is installed. Well cementing ensures the structural integrity of the well, prevents oil and gas from leaking into the ground, and isolates different underground layers. Well cementing results in a cement sheath that holds a casing (the pipe through which oil or gas will flow) against the walls of a wellbore (the hole that is drilled for the well). This report discusses the cement, chemicals, and services used with onshore well cementing, typically bought by oil and gas producers, refinery companies, and oil construction service vendors. Key buyers include oil drilling & drilling extractors, oil & gas field service firms, and energy corporations.
This Report Includes:
- Cementing Services for Oil Wells
- Cementing Services for Gas Wells
Not in this Report:
- Cement and Cementing Services in General Commercial Buildings
- Offshore Products and Services
Global Well Cementing Services Procurement Trends
Discover the top international trends affecting procurement in the global Well Cementing Services market.
Neutral
Crude oil prices dip, but natural gas and fuel prices remain volatile in 2025
- Oil prices have been falling with the introduction of higher tariffs and the predicted decline in global demand. The OPEC+ group of countries also announced they would be unwinding production cuts and increasing their collective output target for May by 411,000 barrels per day.
- Trade wars, ongoing conflict between Hamas and Israel, and general unrest in the Middle East are causing uncertainty surrounding oil prices, which has led to volatility in prices. In the third week of May 2025, crude oil prices hit $63.67 per barrel, but volatility remains as geopolitical concerns remain.
- Natural gas prices rallied early in 2025 with colder-than-usual temperatures in the United States and high demand, topping out at $4.68/MMBtu in March. Prices have since fallen with the onset of trade wars and weakening demand projections to $3.64/MMBtu in the third week of May 2025.
- The national average of gasoline prices has been rising slightly due to refinery maintenance/outages and blending issues, hitting a national average of $3.15 per gallon in the third week of May 2025. However, gasoline futures have been volatile, falling due to fears of oversupply and deepening concerns about weakening demand with tariffs, but rising after trade deals.
Global Well Cementing Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 South America | 1,440 |
| #2 Africa & Middle East | 1,275 |
| #3 Europe | 825 |
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Geography Drilldown - US
Average Cost of Well Cementing Services
United States
2026 Market Pricing$5,000.00 to $XXX,XXX.XX
per per projectAverage Price
Prices in the Well Cementing Services market range from $5,000.00 to $XXX,XXX.XX, depending on Labor & Expertise, Project Scale and Complexity of the Project. For example, lower prices are associated with Standard workforce ($5,000 to $38,000 per project), whereas higher prices are associated with Specialized expert teams ($30,000 to $160,000 per project).
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Well Cementing Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Well Cementing Services market, prices in the US have grown 2.7% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
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Cost Analysis - Total Cost of Ownership for Well Cementing Services
Total cost of ownership is Low in the Well Cementing Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Scope Changes may raise the total cost of ownership unexpectedly.
Negotiated Before
Pre-evaluation
Billed During
Repairs
Unforeseen
Scope Changes
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -2.6 in the United States. Buyer power is most positively impacted by Market Share Concentration. It is most negatively impacted by Average Vendor Risk. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
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Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Cement Manufacturers
- Mining, Oil & Gas Machinery Manufacturers
- Pump & Compressor Manufacturers
2nd
Tier Suppliers
- Sand & Gravel Mining Companies
- Mineral & Phosphate Mining Companies
- Iron & Steel Manufacturers
Biggest Well Cementing Services Suppliers in the US by Revenue
The largest Well Cementing Services vendors by revenue in the US are NexTier Oilfield Solutions Inc., CalFrac Well Services Ltd. and Baker Hughes Company. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Baker Hughes Company | Global | HOUSTON, TX | >10,000 | 10-15 | ||||
| NexTier Oilfield Solutions Inc. | HOUSTON, TX | 1,001-10,000 | 10-15 | |||||
| Schlumberger Limited | Global | HOUSTON, TX | >10,000 | 15-20 | ||||
| Weatherford International Plc | Global | HOUSTON | >10,000 | 15-20 | ||||
| Halliburton Company | Global | HOUSTON | >10,000 | 20-25 | ||||
| Nabors Industries ltd | Global | HAMILTON, HM08 | >10,000 | 5-10 | ||||
| Technipfmc Plc | Global | NEWCASTLE UPON TYNE | >10,000 | < 5 | ||||
| SGS AG | Global | Geneva , CH | >10,001 | < 5 | ||||
| CalFrac Well Services Ltd. | Global | Calgary, CA | 1,001-10,000 | < 5 | ||||
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Profit Analysis
The average profit margin across vendors in the Well Cementing Services market is 16.4% and rising. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Market share concentration is high in this market. Operating costs are very high and regulatory standards are strict, making new entry into this market very difficult.
Vendor risk is low in this market overall. Market vendors face little competition from other vendors or substitutes and generally achieve high levels of profit, indicating that buyers face minimal risk of service disruption due to unstable vendors.
Supply chain risk is moderate in the well cementing services market. Market vendors are highly sensitive to disruptions in cement supply chains, but fortunately cement is widely available and cement production is highly competitive.
The United States is a net importer of cement, indicating the presence of foreign vendors within the domestic market, increasing price-based competition. However, the reliance on foreign-sourced cement increases supply chain risk and the chance of supply disruptions.
Supplier Information
Baker Hughes Company
Baker Hughes Company is a public company operating globally in the mining, manufacturing, manufacturing and professional, scientific and technical services sectors. The company's offerings include inflow control devices, coiled tubing monitoring systems, drilling fluids, hydraulic power tongs, oilfield separators.... Subscribe to learn more
NexTier Oilfield Solutions Inc.
NexTier Oilfield Solutions Inc. is a public company operating in the mining sector. The company's offerings include wireline & perforating services, well cementing services and hydraulic fracturing services. Founded in 2020, the company is currently headquartered in HOUSTON, Texas, United States of America... Subscribe to learn more
Schlumberger Limited
Schlumberger Limited is a public company operating globally in the mining, manufacturing, manufacturing, professional, scientific and technical services and other services (except public administration) sectors. The company's offerings include inflow control devices, drilling tools, drill bits, downhole instrumentation,... Subscribe to learn more
Weatherford International Plc
Weatherford International Plc is a public company operating globally in the mining, manufacturing and professional, scientific and technical services sectors. The company's offerings include inflow control devices, drilling tools, drill bits, downhole instrumentation, coiled tubing monitoring systems. Founded... Subscribe to learn more
Halliburton Company
Halliburton Company is a products and services provider to the energy industry. It organizes its business into two operating segments: Completion and Production segment, which delivers cementing, stimulation, specialty chemicals, intervention, pressure control, artificial lift, and completion products and... Subscribe to learn more
Nabors Industries ltd
Nabors Industries Ltd. is a global provider of drilling and drilling-related services for land-based and offshore oil and natural gas wells. It organizes its business into four segments: the U.S. Drilling segment, which operates land-based drilling rig fleets in the US, focusing on the major hydrocarbon basins... Subscribe to learn more
Basic Energy Services Inc.
Basic Energy Services Inc. is a public company operating regionally in the mining sector. The company's offerings include wireline & perforating services, well stimulation services, well cementing services and well construction & production services. Founded in 1992, the company is currently headquartered... Subscribe to learn more
CalFrac Well Services Ltd.
CalFrac Well Services Ltd. is a public company operating globally in the mining sector. The company's offerings include coiled tubing services, well stimulation services, well cementing services, hydraulic fracturing services and well construction & production services. Founded in 1999, the company is currently... Subscribe to learn more
SGS AG
SGS AG is a public company operating globally in the mining, professional, scientific & technical services and other services (except public administration) sectors. The company's offerings include seismic & geophysical services, slickline services, well cementing services, heavy equipment installation & Subscribe to learn more
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Procurement Management KPIs for the Well Cementing Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Employee Retention Rate and Employee Training Rate. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Compliance and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Employee Retention Rate |
|
Number of employees at start of period Number of employees at end of period |
The employee retention rate represents the share of employees a company is able to retain over a set timeframe. The employee retention rate can be used to determine a company’s likelihood of retaining quality employees and performing quality work. |
| Employee Training Rate |
|
Number of employees that undergo evaluation Number of employees that pass evaluation |
The employee training rate represents the share of employees a company is able to successfully train. The employee training rate can be used to determine a company’s ability to train quality employees. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Experience and Expertise
Have you performed well cementing services for wells in similar locations?
Have you performed well cementing services in permafrost or geothermal locations?
Customization
How long will it take to prepare the cement?
Do you do testing to ensure the cement quality is correct?
Quality Control
What API classes of cement are you able to provide?
What additives do you use or have available that can change the quality of the cement?
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Well Cementing Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should provide a description about their company and their primary operations.
Buyers should provide a description of the services being requested.
Statement Of Need
Buyers should provide technical details of the services being requested, including the type of cement required and the number of wells to be cemented.
Buyers should provide details regarding the geological composition of the areas the wells are in and details regarding the commodity being extracted from each well.
Project Budget
Buyers should provide a total budget that is being allocated to the services being requested.
Buyers should provide a breakdown of the budget, including information about how much of the budget will be allocated towards the services and how much is to be allocated to additional costs, such as travel and lodging, if relevant.
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Our Reports include:
- Opportunity assessment
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- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
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