Coiled tubing operations with data streams representing efficiency in the energy market

Coiled Tubing: Maximizing Efficiency and Effectiveness in a Dynamic Market

Reese Marlowe in Tech & Innovation August 2025 • 4 min read.

"Navigating the evolving landscape of coiled-tubing applications to drive sustainable growth and operational excellence"

The energy sector has faced considerable uncertainty, especially regarding the future of coiled-tubing applications. Initial expectations leaned toward a prolonged period of low prices. However, with oil prices hovering around USD 50 per barrel, it's essential to reassess this outlook and understand the real dynamics at play.

Analysis of data from the U.S. Energy Information Administration (EIA) on West Texas Intermediate and Brent spot crude oil prices reveals that prices didn't consistently rise above USD 50 until 2005. There was a temporary dip in 2008. Examining the cost side, the U.S. Consumer Price Index in 2005 stood at 195 (with 1982 as the base year) and increased to 240 by 2016.

Looking at the U.S. Bureau of Labor Statistics data, oil and gas extraction employment saw significant growth, climbing from 1,287,000 to 1,932,000 between 2005 and 2015, peaking in 2014. This data underscores the importance of understanding market trends to strategically position within the coiled-tubing sector.

How Can Efficiency Drive Development in the Coiled-Tubing Market?

Coiled tubing operations with data streams representing efficiency in the energy market

The global coiled-tubing-unit count provides additional context, showing an increase from 1,163 units in 2005 to 1,951 units in 2016. The peak was observed in 2015, with 2,096 units, according to the Intervention and Coiled Tubing Association's worldwide rig count. These statistics imply specific trends that are currently manifesting:

Activity has decreased, yet costs continue to rise, leading to reduced returns. Despite the current environment, overall activity remains above 2005 levels, indicating an upward trend in demand. EIA data reveals global petroleum consumption rose from 84.7 million B/D in 2005 to 95.1 million B/D in 2016. Therefore, efficiency and effectiveness are critical in the coiled-tubing market's development.

Rising Costs: As operational expenses increase, optimizing processes becomes essential to maintain profitability.
Technological Advancements: Embracing new technologies can enhance efficiency and reduce operational times.
Skilled Workforce: Investing in training programs ensures a workforce capable of handling complex coiled-tubing operations.
Strategic Planning: Adapting strategies to address market changes and capitalize on emerging opportunities.

Achieving efficiency and effectiveness requires diverse approaches. The industry's latest research offers insights into efficiencies achieved in coiled-tubing operations. These insights demonstrate problem-solving techniques applicable to on-site processes, fit-for-purpose equipment, coiled-tubing-string selection, process optimization, and effective treatment placement.

The Future of Coiled Tubing

The coiled-tubing sector is evolving, with efficiency and effectiveness as key drivers. By focusing on innovation, strategic planning, and continuous improvement, stakeholders can navigate market dynamics and achieve sustainable growth. Embracing new technologies and adapting to evolving demands will ensure a resilient and prosperous future for the industry.

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Everything You Need To Know

What were the oil price trends between 2005 and 2016, and how did they impact the coiled-tubing market?

Between 2005 and 2016, the West Texas Intermediate and Brent spot crude oil prices generally remained above USD 50 per barrel, with a brief dip in 2008. This period of sustained oil prices, coupled with rising costs and increased global petroleum consumption, significantly influenced the coiled-tubing market. The rising oil prices, as indicated by the EIA data, supported increased activity in the coiled-tubing sector. This is because higher oil prices often lead to increased investment in oil and gas extraction, thereby boosting demand for coiled-tubing applications. However, the increased costs, as revealed by the U.S. Consumer Price Index, meant that companies needed to focus on efficiency and effectiveness to maintain profitability. This situation prompted the industry to explore new technologies, improve operational strategies, and invest in a skilled workforce to navigate the dynamic market successfully.

How has employment in oil and gas extraction evolved, and what does it tell us about the coiled-tubing sector?

According to U.S. Bureau of Labor Statistics data, oil and gas extraction employment grew from 1,287,000 to 1,932,000 between 2005 and 2015, peaking in 2014. This substantial increase directly correlates with the demand for coiled-tubing services. The expanding workforce signifies growth in the oil and gas industry, which in turn boosts the requirement for coiled-tubing units to perform various operations such as well intervention, drilling, and completion. The peak employment in 2014 likely coincided with a peak in coiled-tubing unit activity, as highlighted by the Intervention and Coiled Tubing Association's worldwide rig count. Thus, understanding employment trends offers valuable insights into the current and future health of the coiled-tubing market and allows for better strategic planning within the sector.

What key factors are essential for the future development of the coiled-tubing market?

Several key factors are critical for the future development of the coiled-tubing market. These include rising costs, which necessitate process optimization to maintain profitability. Secondly, embracing technological advancements is crucial to enhance efficiency and reduce operational times. Investing in a skilled workforce through training programs ensures the ability to handle complex coiled-tubing operations effectively. Finally, strategic planning and adapting to market changes are essential to capitalize on emerging opportunities. The coiled-tubing sector's future relies on a multi-faceted approach, integrating innovative technologies, a skilled workforce, and proactive strategies.

What specific approaches are recommended to improve efficiency and effectiveness in coiled-tubing operations?

Improving efficiency and effectiveness in coiled-tubing operations requires a multi-pronged approach. The industry's latest research emphasizes several critical areas: implementing problem-solving techniques applicable to on-site processes, utilizing fit-for-purpose equipment, selecting the appropriate coiled-tubing-string, optimizing processes, and ensuring effective treatment placement. On-site process improvements might involve streamlining workflows and minimizing downtime. The choice of appropriate equipment is essential for each specific application to maximize performance. Careful selection of the coiled-tubing-string ensures optimal performance and durability. Process optimization includes refining operational procedures to cut costs and improve results. Finally, effective treatment placement ensures the precise delivery of fluids and materials, enhancing the efficiency and success of the operation.

How does the global petroleum consumption data from 2005 to 2016 influence the coiled-tubing sector?

Between 2005 and 2016, global petroleum consumption increased from 84.7 million B/D to 95.1 million B/D, according to EIA data. This rise in consumption signifies increased demand for oil, thereby directly impacting the coiled-tubing sector. As demand for oil increases, so does the need for efficient extraction and well maintenance, where coiled-tubing applications play a vital role. This trend supports the need for greater investment in the coiled-tubing sector to meet the growing demand for oil. The increasing global consumption reinforces the importance of operational efficiency, technological advancements, and strategic planning within the coiled-tubing market to ensure sustainable growth and effectiveness.