Globally, more than 70% of oil is extracted from oil fields that have been in operation for over 30 years. The enhancement of production from these mature wells is anticipated to increase overall oil production. Companies are actively developing new technologies designed to maximize production from these older oil reservoirs to achieve this. Notably, regions such as North America, Russia, and the Gulf of Mexico possess abundant oil and gas reserves, many of which are classified as mature. Several major countries, including Argentina, India, China, and Australia, also have a significant number of mature wells with great potential. Additionally, many countries that are currently in the process of developing their resources also have fields that are transitioning into the late production plateau. This includes countries like Egypt, Thailand, Mexico, and Nigeria. Remedial cementing techniques are employed to repair the challenges posed by aging and deteriorating wells. The need for remedial cementing arises from various issues such as poor cement bonding during the well construction process, casing failures, leaks, abandonment of non-productive or depleted zones, and gas migration or surface casing vent flows that may occur over the lifespan of a well. It is important to note that production from matured wells is a high-risk endeavor due to the increasing complexity of the well structure. Conventional drilling techniques are often inadequate for ensuring the safe and efficient extraction of hydrocarbons from these mature wells. Consequently, the growing number of matured and aged wells is expected to drive the product market soon.
The oil production process can be categorized into three stages: primary, secondary, and tertiary, or EOR. Hydrocarbons naturally rise to the surface during the primary stage or are extracted using artificial lift devices like pump jacks. In the secondary stage, water and gas injection are employed to displace the oil and bring it to the surface. The tertiary stage is utilized in fields with poor permeability and heavy oil, where various techniques are employed to enhance oil production. Given the anticipated increase in oil demand, companies are actively developing new infrastructure and technologies to extract oil from reservoirs. Additionally, they are exploring offshore sources for oil extraction due to depleting onshore reserves and the challenges associated with extracting crude oil from such sources. However, extracting crude oil from offshore sources requires appropriate infrastructure and technology. Consequently, companies are investing in research and development activities to improve their resources for oil extraction at all stages. They are also focusing on devising optimal strategies for field development to ensure efficient and timely oil production. Unfortunately, incorrect strategies are often adopted to produce oil as quickly as possible, leading to suboptimal recovery from reservoirs. Companies are conducting thorough research and development to address this issue and devise effective solutions. Adequate investment in R&D is crucial not only for the development of new technologies but also for planning a comprehensive strategy for secondary recovery.
The oil prices experienced a significant decline in 2014 and 2015, resulting in oil companies worldwide implementing cost-cutting measures and reducing planned capital expenditure. This defensive approach directly affected the oilfield service industry, which relies heavily on oil-producing companies' business. The impact on the industry intensified as the crude oil prices continued to decrease. Numerous sectors dependent on the oil and gas market have faced substantial reductions in cash flow, leading to financial distress. Oil players, particularly those without hedging arrangements, have witnessed a sharp decline in cash flow from oil and gas production. Consequently, their ability to meet debt obligations, fund operations, and pursue new projects has been compromised. These circumstances have caused payment defaults or delays, project cancellations, and postponements for many oilfield service companies. The ripple effect extends to their suppliers and sub-contractors, exacerbating the situation. Bondholders, debt providers, and banks are also grappling with covenant breaches, requests for payment deferment, and payment defaults. Therefore, the decline in crude oil prices is anticipated to have a negative impact on the oilfield services industry, potentially impeding market growth in the foreseeable future.
This section will provide insights into the contents included in this enhanced oil recovery market report and help gain clarity on the structure of the report to assist readers in navigating smoothly.
Market drivers and restraints
Key market opportunities prioritized
Latest strategic developments
Market size, estimates, and forecast from 2019 to 2030
Market estimates and forecast for product segments up to 2030
Regional market size and forecast for product segments up to 2030
Market estimates and forecast for application segments up to 2030
Regional market size and forecast for application segments up to 2030
Company financial performance
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