Rapidly Increase in Unconventional Resources Construction and Number of Matured Reservoirs to Fuel Artificial Lift System Market Growth
The development of unconventional oil and gas resources around the world has resulted in increase in demand for energy and fossil fuels in different industries, including transportation. Commercial reserves today lie far beyond the earth's crust or deep beneath the ocean beds, signalling the end of the easy oil era. To address these obstacles and assure the supply of oil and gas, producers are focused on unconventional sources such as shale oil, shale gas, coal-bed methane, and oil sands. Artificial lift devices are necessary to extract these resources to the surface due to the lack of natural pressure to force them. This predominantly drives the growth of global artificial lift system market. According to the US Energy Information Administration (EIA), around 7,576.6 trillion cubic feet of shale gas and 418.9 billion barrels of tight oil are available globally. Additionally, by 2050, global unconventional natural gas output is predicted to reach 1.9 trillion cubic meters. Between 2019 and 2050, tight sands output is predicted to expand from 200 to 314.1 billion cubic meters, accounting for most of the unconventional extraction.
The demand for artificial lift systems is expected to rise due to increase in the number of aged wells, and mature reservoirs around the world. Around two-thirds of worldwide oil production comes from mature fields. Because of a decline in natural pressure in the reservoirs in these fields, the production output from these fields has been dropping. As a result, artificial lift systems are employed to boost output and extract the most of recoverable resources from these fields. Artificial lift systems assist in increasing reservoir pressure, resulting in increased oil and gas flow to the surface, which continues to fuel the growth of artificial lift system market.
Untapped Reserves of Offshore to Enhance Demand for Artificial Lift Systems
During the projected period, the offshore segment is expected to increase at the fastest rate. Hydraulic pumping, gas lift, ESP, and PCP are the most common artificial lift methods utilized in offshore oil wells. Because offshore has vast undiscovered reserves, corporations have started seeking offshore regions for oil and gas development. As a result, the offshore market requires more money than the onshore market. According to the IEA, 2500-3000 offshore projects are expected to be decommissioned between 2019 and 2040, as they have reached the end of their operating lifespan. The Gulf of Mexico and the North Sea have the shallowest fields that are maturing. As a result, artificial lift methods are in high demand in the Gulf of Mexico and the North Sea regions, where shallow fields are maturing, thus upholding the prospects of artificial lift system market.
Increased Exploration and Production Activities to Drive Growth of North America Artificial Lift System Market
North America is expected to dominate the worldwide artificial lift systems market in the forecast period, owing to increased exploration and production activity in the region because of shale finds. Market participants in the area are proposing to build larger multi-well complexes. Companies are using artificial lift technologies with the most up-to-date methodologies to achieve this, which is expected to drive demand for artificial lift systems in the region throughout the projection period. The widespread availability of technologies and fossil fuel supplies is expected to be a primary driver of industry expansion.
The region's growing focus on ageing oilfields, combined with massive investments in the upstream sector, would assist boost the artificial lift systems market in the United States. A growing number of matured oilfields in the region is also expected to increase demand for artificial lift systems to boost the production of the matured fields. Many of these fields are projected to be found in the Permian Basin, which has produced a lot of oil and gas in the last two decades. For instance, in June 2021, Oil Dynamics GmbH improved two wells for an oilfield operator near Hannover, Germany, who wanted to replace and improve pumping equipment. The wells were upgraded from Progressing Cavity Pumps (PCPs) to Electric Submersible Pumps (ESPs) by Oil Dynamics (ESPs). Investment in the modernisation of oilfields is projected to help the market thrive. Exploration efforts in the North Sea region, in which Norway, Germany, the United Kingdom, and others play a prominent role, are likely to drive significant growth in Europe. European countries are ahead of the curve when it comes to adopting and creating innovative technologies, which drives the ESP industry. Sucker Rod Pump will, as a result, play a significant role in the entire artificial lift system market in Europe.
Global Artificial Lift System Market: Competitive Landscape
In April 2021, Ambyint's production and artificial lift optimisation apps might be deployed into existing Azure settings at Energy and Power (E&P) organizations using Microsoft Azure. On the other hand, in February 2022, by installing all of the failure-prone electrical components in the well's annulus as part of the permanent completion, the Upwing Magnetic Drive System (MDS) hermetically protects them from the corrosive production fluids. Using a slickline for the system's mechanical string simplifies deployment, and intervention.
A few of the players in artificial lift system market include Halliburton (US), Baker Hughes Company (US), JJ Tech (US), Weatherford (Switzerland), AccessESP (US), NOV (US), Borets International (Russia), Apergy (US), Schlumberger (US), DistributionNow (US), Novomet (Russia), and Oilserv (UAE).
Global Artificial Lift System Market is Segmented as Below:
By Well Type
Key Elements Included In The Study: Global Artificial Lift System Market
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