Increasing Oil and Gas Production & Technological Advancements are a major factor attributable to the growth of the market.
As per a TechSci Research report titled “Global Offshore Artificial Lift System Market – Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028,” the Global Offshore Artificial Lift System is expected to experience robust growth in the forecast period, achieving a Compound Annual Growth Rate (CAGR) of 7.58% through 2028. Artificial lift refers to a technique utilized to reduce the bottom hole pressure (BHP) in the production formation, thereby increasing well production rates. It aids the upward movement of oil and gas when the natural drive, known as primary recovery, is insufficient to bring oil to the surface. The COVID-19 pandemic had a detrimental impact on the market in 2020 due to reduced oil and gas demand. Oil companies operating in North American shale plays, such as Whiting Petroleum Corp, either declared bankruptcy or unveiled restructuring plans due to a sharp decline in prices brought on by the pandemic.
In 2021, mature fields accounted for a significant portion of global oil and gas production. These mature fields require an offshore artificial lift system, driven by the need for enhanced recovery rates, increasing numbers of wells requiring pressure support for extraction, rising energy and petrochemical demands, and technological advancements that enable economically extracting oil from challenging locations.
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Electric Submersible Pump (ESP) Systems are expected to dominate the market based on type. Most oil and gas fields have been in production for several decades and are either mature or nearing the end of their production life. As global consumption rises due to population growth, urbanization, and industrialization, particularly in developing economies, ESPs are the preferred choice for use in large oil wells that have passed their peak production phase. This is particularly evident in Middle Eastern countries with mature oilfields that require the deployment of offshore artificial lift systems. Onshore electric submersible pumps are also projected to witness significant demand growth, driven by the increasing number of mature fields in the sector and the need for ESP systems in shale reservoirs.
Furthermore, the oil and gas industry in the United States is expected to drive demand for submersible pumps due to substantial investments in oil and gas projects in the coming years. This growth in new projects is anticipated to create demand for new ESPs and gas lift systems, i.e., Offshore Artificial Lift Systems, in the United States. Asia-Pacific, with Russia as a primary demand center for ESPs, is one of the fastest-growing markets for ESP. Russia is focused on increasing production output from established fields, particularly in the Siberian region, to meet China’s growing demand. Electric submersible pumps are set to dominate the market due to their flexibility and technological innovations.
In terms of regions, North America is expected to be the fastest-growing market. North America dominated the global Offshore Artificial Lift Systems market in 2021, primarily due to increased shale discoveries and exploration and production activities in the region. Market players in North America are planning to develop larger multi-well facilities and are incorporating artificial lift technologies to boost production. The availability of technologies and fossil fuel reserves in the region, along with investments in the upstream sector, are driving factors for market growth. Additionally, the focus on mature oil fields and the massive investments in the upstream sector in the region are expected to bolster the Offshore Artificial Lift Systems market, with North America poised to lead.
Furthermore, the presence of numerous matured oilfields in North America is expected to increase the demand for Offshore Artificial Lift Systems to enhance the productivity of these fields. Many of these fields are located in the Permian Basin, which has been a significant oil and gas producer for the last two decades. However, the market may face challenges due to the growing opposition to oil and gas in the country, driven by concerns about carbon emissions. In June 2021, Oil Dynamics GmbH upgraded two wells for an oilfield operator near Hannover, Germany, shifting from Progressing Cavity Pumps (PCPs) to Electric Submersible Pumps (ESPs), reflecting the trend of modernizing oil fields to support market growth.
In conclusion, the North American continent is expected to dominate the market due to its abundance of matured oil and gas fields and the increasing demand for energy.
Key market players in the Global Offshore Artificial Lift System Market include:
- Borets International Ltd
- Dover Corp
- Flotek Industries Inc
- Baker Hughes Co
- Halliburton Company
- National-Oilwell Varco, Inc.
- Schlumberger Limited
- Weatherford International Ltd
- Alkhorayef Commercial Co
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According to Mr. Karan Chechi, Research Director at TechSci Research, a research-based global management consulting firm, “The global Offshore Artificial Lift System (ALS) market is being driven by increasing energy demand, technological innovations, and the need to optimize production from aging reservoirs. ALS plays a crucial role in maintaining a stable energy supply, especially in the face of declining natural reservoir pressure. Environmental regulations promote the adoption of ALS by encouraging efficient production with reduced emissions. Expansion into unconventional resources and the integration of data-driven solutions also contribute to the ALS market’s growth. These factors collectively position ALS as a vital tool for the oil and gas industry to meet global energy demands while ensuring cost-effective and environmentally compliant operations.”
The report titled “Offshore Artificial Lift System Market – Global Industry Size, Share, Trends, Opportunity, and Forecast,” segmented by type (Electric Submersible Pump System, Progressive Cavity Pump System, Rod Lift System, others) and by region, for the competition from 2018 to 2028, has assessed the future growth potential of the Global Offshore Artificial Lift System Market. It provides statistics and information on market structure, size, share, and future growth. The report aims to deliver cutting-edge market intelligence to assist decision makers in making informed investment decisions. Additionally, the report identifies and analyzes emerging trends, along with essential drivers, challenges, and opportunities present in the Global Offshore Artificial Lift System Market.
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