Introduction to Pumpjack
Pumpjack is a device that is used to mechanically extract the crude oil from an oil well. It is used to lift the oil from oil-rich areas where there is not enough pressure in the well to force oil to the surface. It usually produces 5 to 40 litres of liquid at each stroke, depending upon its size. They function by generating artificial lift which means increasing the pressure within the oil well to pull the oil to the surface. Modern pumpjacks are powered by an engine known as prime mover (PM). Some are fueled by electricity, while others use natural gas, particularly those in remote locations. The two common PMs are electric motors and internal combustion (IC) engine and the choice to use them depends on availability of power source, efficiency of system, current and future expected cost for the power source among many others. The horsehead part of pumpjack pumps up and down and brings oil to the surface through a horizontal shoot.
Pumpjacks are primarily used in petroleum industry. The extraction of oil using them has become more efficient and with advancements in technology, they do not need to be heavily manned, i.e. they can be supervised remotely. They are not exclusively used in petroleum industry. On a small scale they are replaced by traditional hand-pumping techniques that are used at water wells.
Market Size and Forecast
The market is observing a notable growth on account of increased demand for crude oil and ease in operation of the device around the globe. The use of pumpjacks is expected to rise in the upcoming years owing to their application in many unconventional areas including shale formations. Utilization of pumpjacks for low-production oil well is also estimated to positively impact the growth of the market as the running cost required does not surpass the oil supply levels. Additionally, transportation of surface unit to other wells with minimum installation costs and its ability to lift liquid of high temperature and viscosity are anticipated to propel the growth of the market. Moreover, easy corrosion and scale inhibition treatment for pumpjacks is also projected to drive the growth of the market. Furthermore, the possibility to control it automatically without human intervention is one the major factors that are supporting the growth of the market.
The global pumpjack market is anticipated to record a CAGR of 5.2% over the forecast period i.e. 2019-2027. The market is segmented by application into onshore and offshore, out of which, the onshore segment is anticipated to hold leading shares on account of larger surface area and spacing provided by onshore segment. Additionally, they are easy to maintain, repair and supervise. Based on well type, the market is bifurcated into horizontal and vertical well, out of which, the vertical well segment is estimated to have a largest market share on the back of low requirement of extensive drilling. CLICK TO DOWNLOAD FREE SAMPLE
Increased Energy Demand
Increased demand for energy due to worldwide increase in energy consumption is estimated to propel the growth of the market throughout the forecast period. According to U.S. Energy Information Administration (EIA), globally, the total consumption of petroleum and other liquids was 98.46 million barrels per day which is further estimated to increase to 102.89 million barrels per day by 2020.
Additionally, increasing number of mature oilfields are also anticipated to drive the growth of the market during the forecast period.
High Maintenance Cost
Pumpjacks are not applicable for ultra-deep wells. Additionally, high cost associated with the maintenance of sucker rods which hang the device into the well is estimated to negatively impact the growth of the market.
Moreover, lower efficiency when installed in gassy wells due to gas locking and gas interference is also projected to hamper the growth of the market.
Our-in depth analysis of the global pumpjack market includes the following segments:
By Well Type
On the basis of regional analysis, the global pumpjack market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The market in North America and Middle East & Africa region is anticipated to show a significant growth during the forecast period. This can be attributed to development in smart technology and mature oilfields in these regions. Additionally, economies in these regions depend upon oil production and are key exporters of crude oil.
The global pumpjack market is further classified on the basis of region as follows:
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