Blowout Preventer Market size is expected to grow significantly between 2022 and 2028 with rising demand from both onshore and offshore projects. Soaring subsea drilling activities have boosted the demand for blowout preventer (BOP) systems. BOPs provide a slew of functions such as regulating and monitoring wellbore pressure and adding fluid to the wellbore.
Blowout preventers are heavy metal covers that prevent fuel leakage from under the ground. BOPs can be controlled remotely and can prevent blowout in the oil and gas wells. With major oil and gas companies emphasizing the safety of equipment and devices, BOPs are slated to observe profound investments in the next few years.
Blowout preventer market share from the annular segment will experience a healthy growth rate during the forecast period. Increased demand for lightweight and compact designs to seal on various diameters of the bottomhole assembly (BHA) will foster the use of annular BOPs. It also helps maintain the seal when drill pipes, tubing and casing are out of the drill hole, sealing pipes of various sizes.
The growth prospect of the ram segment will be noticeable owing to the ability to prevent oil from escaping. The arrangement also enables a controlled flow of oil when needed and prevents unwanted materials from building up and exploding. Notably, blind rams are sought to close any portion in the well and will remain instrumental in preventing oil well blowouts.
The offshore BOP segment in the blowout preventer market will account for a significant share during 2022-2028. Demand for the well control systems is poised to be considerable in offshore wells to ensure a safer working environment. With an upsurge in offshore drilling activities, investments in blowout preventers will run in conjunction with expanding distribution networks.
On the basis of the regional landscape, the North America blowout preventer market revenue will grow at a notable pace. The U.S., in particular, will ramp up investments in both annular BOPs and ram BOPs. Offshore oil and gas producers are focusing have upped the exploration activities in quest of unconventional sources of oil and natural gas.
Middle East and Africa region will emerge as a lucrative market for BOPs with the popularity of ram blocks, shear rams and annular model assemblies. Mobilization of BOPs will be noticeable in Saudi Arabia, underscoring the regional presence of leading industry players. According to OPEC, Saudi Arabia is the home of 17% of the world’s proven petroleum reserves. Drilling activities will continue to surge in the region, prompting companies to expand their penetration in MEA.
Key vendors in the market are Halliburton, Uztel, GE oil & gas, Rongsheng Machinery, OJSC NaftaGaz, MSP/DRILEX, Shenkai, GCOP, Control Flow, National Oilwell Varco, Fountain Petro, Jiangsu Jinshi, Well Control and Jiangsu Xinde. The competitive landscape indicates a focus on product launches, mergers and R&D investments.
A drastic drop in crude oil demand in 2020 was witnessed in response to volatile economic conditions. Declining crude oil and natural gas production in New Mexico could have led to a dip in the need for new annular and ram blowout preventers. Reportedly, drillers had idled around 45% of U.S. oil rigs since mid-March 2020, affecting the regional market outlook.
The impact of the pandemic may be witnessed in the future as well with shale drilling output anticipated to be lower. However, a robust outlook from the U.S. EIA will encourage stakeholders. The watchdog stated that New Mexico recorded high production of crude oil and natural gas in March 2021 with 1.16 million bpd of output.