Early Production Facility Market Analysis

Early Production Facility Market Analysis

Recovering oil prices coupled with robust growth in energy demand will attract major investments in the industry. Prevailing development activities across several oil & gas fields along with reinvestment in mature fields will stimulate the deployment of new EPF units. Active participation of private players along with robust development of unconventional hydrocarbon resources will augment the industry outlook.
 

The U.S. and Latin America has commissioned several new exploration and production projects with increased spending in upstream capital assets and production facilities. Requirement of efficient asset base to support surging oil and gas exploration along with long term plans by respective government authorities to boost production will positively enhance the business outlook. For instance. in 2019, the shale and conventional reserves increased by over 10% when compared with the previous year.
 

Ongoing industry speculations regarding supply and demand along with robust shale production across the U.S. will propel the early production facility market growth. The oversupply in the industry have suppressed the oil prices that are favoring the deployment of EPF units. The facilities enable swift production, optimizes operations, gather real time data and require low capital investment that makes it economically preferable over CPFs in the current environment.
 

Geopolitical risk along with uncertainty regarding the OPEC’s production cuts has further amplified the industry volatility. For instance, OPEC and Russia’s plans to cut production till first half of 2020 and recent attacks in Saudi Arabia have resulted in soaring oil prices. In the current scenario the industry players are hesitating to make large capital investment on permanent facilities which will further strengthen the industry growth.
 

Depleting production from maturing oil and gas fields along with high cost incurred in maintaining of large production platforms will foster the early production facility market demand. The EPFs are appropriate for producing a marginal or mature field when compared with a permanent unit. For instance, in 2018, BP reported a 12% increase in production from mature fields. Key abilities including extraction of remaining 10% of oil from the reservoir and efficient performance at low pressure conditions will complement the industry landscape. Growing number of depleting reserves across Europe primarily in Romania and Russia will stimulate the installation of more units.
 

Ongoing technology advancement with improvement in drilling technologies is set to drive the North America EPF market growth. Rapid development of new hydrocarbon fields both onshore and offshore will augment the industry landscape. Growing upstream capital spending along with active investments toward research and development will enhance the business outlook. The companies are adopting advanced digital technologies including AI, IoT, cloud computing, sensors, analytics integrated with the facilities to better monitor and analyze the real time reservoir and production data. Improved designs and performance coupled with substantial rise in profitability and revenues will complement the business landscape.
 

The Middle East early production facility market outlook is set to grow owing to increasing adoption of advance technologies and ongoing development of new oil and gas discoveries. The industry players are actively adopting EPFs owing to their efficient performance and substantial savings in cost and time. Kuwait, Iraq, Yemen are some of the key countries that have witnessed significant deployments in the past decade.|