Boosting production from ageing wells and oil & gas discoveries to propel growth in well intervention market
Fortune Business Insights, a market research company, expects the increased number of initiatives to boost production from ageing wells and oil and gas discoveries to drive growth in the global well intervention market.
The firm reported on Thursday that the global well intervention market is set to gain traction from the increasing demand for energy and the rising investments in the subsea, oil and gas industry. In its report, the company further states that the well intervention market size was $8.43 billion in 2019 and is projected to reach $10.64 billion by 2027, exhibiting a CAGR of 6.1 per cent during the forecast period.
The report further elaborates that the rising adoption of intelligent digitized solutions, services, and devices is set to boost growth. Besides, the implementation of data collection platforms, innovative technologies, data analysis, and wireless mobility would affect growth positively, based on Fortune Business Insights’ statement.
In addition, the rising initiatives to adapt to state-of-the-art equipment and to integrate novel production techniques for improving the output produced from the mature wells would accelerate the well intervention market growth in the near future. Apart from that, well intervention techniques are an integral part of production, exploration, and planning of oil and gas wells, which also aids in providing effective operation, escalating production, lowering risks, and surging the life of production tubing.
However, the implementation of strict laws imposed on exploration and production activities worldwide may decline the demand for well intervention systems, according to Fortune Business Insights’ report. While the market for well intervention is highly fragmented in nature, the report explains that numerous oil production companies are engaging in new contract signing and bagging new orders to compete against their rivals and some of the others are focusing on joint ventures and acquisitions to strengthen their positions.
The report lists that the following companies are the most sought after in this market: Schlumberger, Baker Hughes, Halliburton, Weatherford, National Oilwell Varco, HELIX ESG, Oceaneering International, Expro Group, Hunting Energy Services, Deepwell, Welltec, TechnipFMC, C&J Energy Services, Superior Energy Services, and Altus Intervention.
Well intervention market: pandemic, environment regulations and renewables as main pitfalls
The main pitfalls and challenges hampering the growth of the well intervention market based on the report are the increasing focus on renewable energy and stringent regulations for protecting the environment.
The Covid-19 pandemic, which resulted in the shutdown or limited functioning of oil and gas companies worldwide also hindered the growth of the market last year and is continuing to do so this year with no confirmed end in sight. Therefore, it is likely that the growth of the well intervention market will be impacted by the pandemic next year as well.
The report explained that the pandemic has compelled several oil and gas companies to shut down their manufacturing facilities owing to the complete lockdown and social distancing measures. At the same time, the pandemic has created the Russia/Saudi price war. It has made it more difficult for companies to establish a flexible business model.
Driving growth factors: oil & gas discoveries and demand to increase production
The report outlines that the huge potential for exploring oilfields, as well as the increasing number of oil and gas discoveries specifically in the North American region would also serve to propel growth in the well intervention market.
Additionally, the Asia Pacific region is set to hold the second-largest share stoked by the increasing capital expenditure (CAPEX) by various countries to secure the rising energy demand in future. Also, the surging number of old wells is set to boost the demand for well intervention systems in the region.
Fortune Business Insights claims that the number of oil and gas discoveries in oilfield reserves is increasing day by day and coupled with this, the ongoing technological advancements to boost production outputs from oil wells would contribute to the well intervention market growth in the coming years.
Per the firm’s estimation, oil prices may surge significantly in the near future and this would aid independent exploration and gas production companies to invest hefty amounts in oil and gas exploration activities. Although, as companies are shifting towards renewable energy sources for generating power, this factor may obstruct the demand for well intervention systems.
Recently, another market research company, Fact.MR, also reported an analysis outlining further growth in the well intervention market.
The company expects the global well intervention market to exceed $14 billion by 2031, since, offshore oil and gas exploration projects are expected to double the growth of the market, as operators seek to increase production from existing fields amid the skyrocketing oil and gas demand.