Artificial Lift Systems Market Size By Product (Progressive Cavity Pumps, Electrical Submersible Pumps, Gas Lift, Rod Lift, Hydraulic Pumps), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2016 - 2023
Published Date: April 2016 | 60 Pages | Report ID: GMI404 Report Format: PDF
Artificial Lift Systems Market size in 2015 was over USD 15.9 billion, it is projected to grow at a CAGR of 8.9% over the forecast timeline.
Europe Artificial Lift Systems Market size, by product, 2012-2023 (USD Billion)
Increasing population coupled with rapid infrastructure development and industrialization have led to considerable oil & gas demand and consumption. High R&D spending offers solutions for harsh environments, handling ultra-low volume as well as high temperature wells to maximize production, enhance the lifecycle of the system, and reduce overall system costs.
About 30% of mature oil fields account for half of the global oil reserves, the average conventional gas global recovery factor is about 70% and around 2.4 trillion barrels of oil reserves are concentrated in less than 1,500 (>100K b/d) fields. Around 70% of by mature field account for global gas and oil production with many sites in secondary or tertiary production phases positively impacting the artificial lift systems market share.
Fluctuating crude oil prices are negatively impacting investments in artificial lift systems market size owing to high capital and equipment costs. High operating costs due to pump failure from solids production or gas-locking will hamper industry demand over the forecast timeframe.
Rod lifts market share accounted for about 24% of the revenue in 2015 and is set to grow at a CAGR of 9.7% from 2016 to 2023. Simple system design, less cost to transfer to other wells, easy operability, and the ability of pumping well down to very low pressure will contribute to growth. Moreover, ability to lift viscous and high-temperature oil, using electricity or gas as power source, performing scale and corrosion treatment and availability of different sizes will fuel the artificial lift systems market size from 2016 to 2023.
The electrical submersible pump market size is projected to grow at 8.9% CAGR over the next few years. The ability to lift extremely high volumes and low lifting costs will propel the growing ESP segment demand over the forecast timeframe, thereby aiding in growth across the global artificial lift systems market share.
North American revenue, fuelled by U.S. artificial lift systems market size, was USD 6.36 billion in 2015 and will continue its dominance over the next seven years. This growth can be attributed to increasing shale gas production and availability of low pressure oil wells in the region.
Middle East and Africa artificial lift systems market share exhibits attractive growth prospects due to high acceptance of wireline service and tools. Moreover, rapidly maturing oil fields due to continuous extraction would increase the demand for these systems over the forecast period.
Rising demand for natural gas and crude oil has resulted in depletion of onshore reserves. This has unlocked offshore deep-water opportunities for many companies, fueling artificial lift systems market size. Technological advancements have encouraged E&P (exploration and production) companies to increase production of crude oil and natural gas in offshore reserves, which will fuel artificial lift systems market size.
Competitive Market Share
The artificial lift systems market is characterized by technology sophistication and high capital investments. Companies aim at attaining competitive advantage by entering collaborations & acquisitions and to mitigate the bargaining power of suppliers. Major companies involved are General Electric, Schlumberger, Cameron International, Baker Hughes, Weatherford International, and Halliburton.
Rapid industrialization has forced companies operating in the artificial lift systems market to meet consumer demand by focusing on unconventional gas resources. Horizontal drilling and hydraulic fracturing are some of the techniques of unconventional gas resources. Hydraulic fracturing provides high production rates; however, it eventually declines due to low permeability of shale gas.
Artificial lift systems market share is set to benefit from growing deployment to increase the oil production from reservoirs. When the natural reservoir energy is not enough to push oil to the surface, these systems helps to increase the pressure within the reservoir. Most of the oil fields require this system to increase their productivity, gas wells and are benefited by extracting liquid off the formation so that gas can flow at a higher rate. This can be attained by rod pumping, hydraulic piston pumping, electric submersible pumping, gas lift, hydraulic jet pump, plunger lift or progressive cavity pumps. Each technology in the artificial lift systems market has its own advantages and disadvantages leading to different operating and capital expenditures.
The oil and gas field potential is maximized by choosing the most economical artificial list systems which is determined by different parameters such as geographical location, operating cost, capital cost, production flexibility, reliability, and equipment downtime between failures. Moreover, operator experience, available methods for installation, reference of technology used in adjoining fields, determining desired lift from required depths should also be considered as an important aspect for selecting any method. Along with applicability of technology, consideration must be given to the installation, design and cost of the entire system before selecting any technology.
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