The global artificial lift systems market is expected to register a 6.20% CAGR from 2014 to 2020, states a research report by Transparency Market Research (TMR). At this rate, the global artificial lift systems market is expected to reach a value of US$19.80 bn by 2020. There are numerous factors making this remarkable growth rate possible.
The first and foremost is the inherent advantages that artificial lift systems carry. They increase the pressure of the reservoir exactly when the bottomhole pressure is insufficient to push the natural gas or crude oil to the surface of the well. Till date, a large number of gas wells have benefitted from using artificial lift systems. Nearly 10% of the worldwide oil and gas wells possess a natural reservoir drive to pull crude oil to the surface while the remaining are dependent on artificial lift systems.
Artificial lift systems are segmented into two main types: Gas systems and pump systems. Gas systems include a plunger lift and gas lift whereas pump systems comprise a sucker rod pump, progressive cavity pump, and electrical submersible pump. Parameters such as operating cost, geographical location, capital cost, and production flexibility are considered for the selection of artificial lift systems.
Which are the core driving factors of the global artificial lift systems market?
The newly introduced artificial lift systems are engineered with extended runlife, quality, and capacity. Moreover, the increasing deepwater oil production is expected to drive the global artificial lift systems market in the near future. The global market is also expected to receive assistance from the matured reserves that account for the highest percentage of crude oil production. Especially in Europe, the demand for artificial lift systems is expected to be high owing to the current discoveries of shale gas in nations such as Poland, Denmark, and Spain. The elevated offshore reserves in countries such as Tanzania and Egypt are likely to boost the RoW market to contribute significantly to the global artificial lift systems market.
Are there any growth opportunities, which could help overcome the restraints in the global artificial lift systems market?
The global artificial lift systems market is expected to be hampered by fluctuations in the crude oil prices. In the past few years, the price of crude oil has decreased by 50%. This can be due to the weak demand for crude oil in many nations owing to dull economic growth. As per the U.S. Energy Information Administration (EIA), the production of oil in the U.S. shifted from 5.6 mn barrels per day in 2011 to 7.5 mn barrels per day in 2013. Even though the global artificial lift systems market has to experience unfavorable growth conditions due to the decreasing crude oil prices, unconventional gas production will act as a major growth opportunity in the near future.
Will the introduction of new products boost the global artificial lift systems market in the near future?
A. Based on where the global artificial lift systems market stands today, it will be easy to say ‘yes’. The introduction of new products will boost the global artificial lift systems market. For instance, Schlumberger is currently offering a wide range of artificial lift systems for longer life of the well including gas lift, sucker rod pumps, electric submersible pumps, and progressing cavity pumps. With mergers and acquisitions, which are likely to happen in the near future, manufacturing companies are expected to introduce new systems to contribute more to the global market.
Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.