In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
Artificial lift is a method used to lower the producing bottom-hole pressure on the formation to obtain a higher production rate from wells using positive displacement down-hole pumps such as ESP, RLP, and PCP that lower the flowing pressure on the pump. Artificial lift is a process generally used in oil wells to increase pressure within the reservoir and encourage oil to the surface. Artificial lifts are more used when there is reduced natural drive energy of the reservoir to push the oil to the surface.
The two major components of artificial lift include pumping systems and gas lifts. Artificial lift pumping systems are applied as beam pumping and hydraulic pumping, out of which beam pumping is usually more preferred for usage. Hydraulic pumping equipment applies down-hole hydraulic pumps to lift oil to the surface. Here, the production is forced against the pistons, causing pressure resulting in the pistons to lift the fluids to the surface, during which the natural energy within the well is put to work to raise the production to the surface.
The global artificial lift systems market will register a CAGR of 10% by 2027. The market was valued at USD 13 Billion market in the year 2017. The increasing demand from oil and natural gas industry will be one of the key factors that will determine the growth of this market in the upcoming years.
The market is segmented on the basis of type, mechanism, application. On the basis of type it is segmented into electrical submersible pump, Rod lift, progressive cavity pump and gas lift. Electrical submersible pump is expected to be the fastest growing segment on the account of their ability to handle high volume wells in the offshore drillings. On the basis of mechanism, it is segmented into pump assisted, dynamic displacement, positive displacement and gas assisted. On the basis of application, it is segmented into onshore and offshore. Initial investment and risk in offshore is high but on the account of demand the profitability rates has been high.CLICK TO DOWNLOAD FREE SAMPLE
By region, the global artificial lift system is segmented into North America, Latin America, Europe, Asia-Pacific, Middle East and Africa. The U.S. market is likely to observe substantial growth owing to the existence of low pressure oil wells coupled with continual increase in oil consumption. According to US Energy Information Administration the U.S. crude oil consumption has reported to have increased from 18.4 MMbbl/d in 2012 to 19.8 MMbbl/d in 2017. Accessibility of untapped reserves in the country will further supplement the business growth.
UK market will grow on account of increasing oil production together with ongoing field development plans. UK operators have sanctioned various field development plans in 2012 and 2018, which are expected to begin production by 2025. In the Middle East region, availability of proven oil reservoirs along with rising focus toward advanced fields will increase the Saudi Arabia market. Saudi Aramco has suggested plans to conduct additional drilling at the existing fields to help and compensate for the normal deterioration from the established fields.
Our in-depth analysis segmented the Global artificial lift systems market in the following segments:
Global artificial lift system market is further classified on the basis of region as follows:
The increasing global population is resulting in an increased demand for energy in form of oil and natural gas, mainly within developing countries. The increase in demand for oil and natural gas is also heavily driven by transportation needs. The unstable nature of crude oil price has increased the number of exploration and production (E&P) companies in onshore and offshore oil and gas fields to increase their production from developed fields.
Advancements in technologies such as deep water and ultra-deep water operations exert more pressure on the pipelines from outside on the account of ocean water pressure. Hence, the usage of artificial lift systems is expected to be more prominent under these operating conditions. This will fuel the market of global artificial lift system in Oil and Petroleum industry.
The challenges associated with artificial lift systems are flow assurance problems, which include scaling, slug flow, emulsions, and asphaltenes. Asphaltenes are unwanted compounds found in crude oil. During gas lift operations, asphaltenes may get precipitated near the wellbore, leading to the plugging of tubing and gas lift equipment. Such factors are expected to restrain the demand for artificial lift systems.