The global artificial lift systems market size was valued at USD 14.22 billion in 2014. A significant percentage of oil & gas producing wells require water removal, and thereby utilize these products. Several technologies are developed to address issues with natural gas well liquid loading and are also foreseen to solve challenges associated with the oil & gas sector. The industry has witnessed increased demand owing a to surge in energy demand as well oil & gas production.
Growing trend towards resources being allocated for technological developments is anticipated to play a key role in positively impacting demand. For example, GE announced the launch of ESP vector plus variable speed drive, which allows the operator to remotely control or adjust the mote speed. Customization as per specific end-use requirements has also been a key development.
Oil field automation owing to advancements poses to be a significant opportunity, which helps to reduce unplanned downtime as well maximizing efficiency without having to compromise on safety, health, and the environment. Over the years, production optimization has been an area of key focus for the operators; however, as oil & gas reserves mature, more focus is being laid on deriving resources from existing wells. As oil & gas sector push limits to extract resources from tighter, deeper, and complex formations, demand for artificial lift systems engineered for specific conditions is estimated to rise.
Innovative technologies such as multiphase gas-handling pumps and web-based monitoring services are expected to escalate market growth over the forecast period. Multiphase gas-handling pumps are used along with gas separators, which compress free gas back into the homogenous fluid. Web-based monitoring services are used to minimize intervention cost and optimize production.
Theses involve complex operations and require a skilled workforce with sound knowledge of parameters such as the amount of fluid to be produced, bottom hole pressure, onshore & offshore surface location, wellbore geometry, and total depth. However, lack of skilled workers calls for companies to invest in training.
Any failure due to unavailability or lack of trained or skilled technicians may lead to high operational cost and delayed production process. Further, high maintenance, as well as capital cost associated with these systems, add up to overall operational cost, thereby negatively impacting the industry demand.
North America artificial lift systems market by product, 2012 – 2022 (USD Million)
Rod lifts accounted for over 20% of the overall revenue in 2014, and the segment is anticipated to witness high demand over the foreseeable future. They provide excellent efficiency and are usually recommended for primary and secondary waterflood.
Electrical submersible pumps accounted for the highest market share in 2014. These pumps are capable of handling extreme surface as well as downhole temperatures. Further, advancements in sensor technology allow operators to fine-tune the pump, well, and reservoir performance.
The pursuit of oil has driven the North America industry substantially. The region accounted for over 35% of the overall revenue generated in 2014. In 2013, the market witnessed steady growth owing to decline in oil & gas drilling activities in the U.S. However, rise in energy demand and the need for technologically advanced products are anticipated to elevate the regional demand over the forecast period.
High demand for oil in Asia Pacific has significantly driven the regional demand over the last few years, and the trend is expected to continue over the next seven years. Further, in China, demand for products such gasoline and kerosene is on a rise.
Competitive Market Share Insights
Key players in this industry focus on expanding product portfolio and venture into submarkets. High demand for production-based services has enhanced the market attractiveness considerably. On account of this, several new players providing niche technical expertise as well as maintenance services may enter the market. Key players in this industry include Baker Hughes, Schlumberger, General Electric, Weatherford, and Cameron.
Industry players are focusing on developing advanced technologies to capitalize on the production of existing natural gas and crude oil fields, and to drill deeper than ever before. Offshore drilling, which is one of the expensive methods of oil & natural gas exploration, is also witnessing significant growth.
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