Zonal Isolation Market Size By Technology (Mechanical [Sliding Sleeves, Packers, Perforated/Slotted Liners, Plugs], Chemical [Polymer Gel, Monomer System, Bio-based Polymers, Elastomers]), By Application (Onshore, Offshore), Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Norway, China, India, Saudi Arabia, Iran), Growth Potential, Price Trend, Competitive Market Share & Forecast, 2016 – 2024
Published Date: September 2016 | 90 Pages | Report ID: GMI766 Report Format: PDF
Zonal Isolation Market size was valued at over USD 17.5 billion in 2015 and is predicted to grow at over 6% CAGR from 2016 to 2024.
U.S. Zonal Isolation Market Size, By Application, 2013-2024 (USD Million)
Increasing exploration and production of oil & gas wells, mainly in offshore fields across the globe and rising shale gas exploration coupled with rise in the number of drilling rigs to meet the demand for crude oil will drive growth. Major countries accounting for exploration and production include U.S., Saudi Arabia, Russia, China, and Canada, the UAE, Iran, Brazil, and Mexico.
In July 2016, the global rig count increased by 74 units as compared to June 2016. For Instance, the U.S. rig count number has increased by 32 units to 449 rigs and Canada added 31 units to 94 rigs. Increase in number of rig count will boost the demand for exploration and production, which will drive the global zonal isolation market size.
Argentina added nine units to 72, Mexico added three units, Asia Pacific added four units to 186 (India added five units to 113), and Norway added four units to 20, which will also fuel growth across these regional segments.
In 2015, the average production of the U.S. was 14 million barrels a day. In the U.S., most of the reserves are present in Louisiana and the southern state of Texas. High investments in oil and gas projects will lead to a high volume of exploration and production activities, which will drive zonal isolation market size. It is estimated that China holds 31.6 tcm of recoverable shale gas resource out of which it has completed over 80 appraisal wells including more than 20 horizontal wells in 2013 by investing more than USD 1 billion on shale gas revolution.
In 2014, tight gas accounted for 47% of total Canadian natural gas and shale gas accounted for around 4% of the regional reserves. The National Energy Board of Canada anticipated that tight and shale gas contribution will be around 80% of the Canadian natural gas production by 2035. Stringent rules and regulations coupled with low crude oil prices are expected to be growth barrier.
Offshore zonal isolation market size is forecast to expand at over 7% CAGR. Increasing demand owing to heavy investments in offshore exploration and production activities will boost growth. Onshore applications are projected to witness gains at over 5% CAGR during the forecast period owing to the redevelopment of this mature field.
Mechanical zonal isolation market share was dominant and is forecast to witness moderate gains up to 2024 to register revenue of over USD 7 billion. It is used to prevent the migration of oil and gas between different geographical layers and it includes sliding sleeves, plug, perforated lines, and packers.
Chemical technology is projected to witness gains at over 6% in the coming years. It is used to isolate gas and water producing zone in horizontal wells. In this method, three chemicals are used, monomer, plastic. and polyacrylamide.
Europe, led by Norway and the UK zonal isolation market size was valued at over USD 4 billion in 2015. Continued investments in exploration, production, and development activities to keep high domestic production and reduce their dependency on the import of crude oil would help to boost industry growth. In 2015, despite the low crude oil price, 82 fields were in operation, out of which 11 discoveries were made in the North Sea and six were made in the Norwegian sea and the rest were spudded.
The Middle East led by Saudi Arabia and Iran zonal isolation market size, is projected to witness gains at over 6.53% during the coming year. The increase in exploration and production activities is anticipated to drive the industry. For instance, in 2015, Iran announced to invest in ultra-deep water in order to expand exploration activities in the Caspian Sea.
North America, led by the U.S. zonal isolation market size, was valued at over USD 7 billion in 2015 owing to the search for finding untapped oil and gas reserves and increasing offshore drilling activities coupled with an increase in the number of drilling rigs. This would help to witness a significant growth of the industry.
Competitive Market Share
Major industry participants accounting for zonal isolation market share include TAM International, Inc., Baker Hughes, Expro International Group Holdings, Tendeka, Archer, Halliburton Company, Schlumberger Limited, Superior Energy Services, Weatherford International, Oilsery, C&J Energy Services, Inc., and FMC Technologies.
Zonal isolation is a method used to prevent the cross flow of oil and gas across different geographical layers. The increasing demand for drilling activities is forecast to be a key factor propelling the industry.
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