Global Well Intervention Market is projected to grow at a CAGR of 3.9% By 2032: Visiongain Research Inc
Visiongain Ltd
9 min read
Visiongain has published a new report entitled the Well Intervention Market Report 2022-2032. It includes profiles of Well Intervention and Forecasts by service type (logging and bottomhole survey, stimulation, tubing/packer failure and repair, remedial cementing, sand control, zonal isolation, others), Well Type (horizontal, vertical), Application (onshore, offshore) PLUS Regional Market Analysis and COVID-19 Recovery Scenarios.
The global well intervention market was valued at US$ 7,114.0 million in 2021 and is projected to grow at a CAGR of 3.9% during the forecast period 2021-2032. The global market is expected to reach US$ 8,170.6 million in the year 2025 whereas it is anticipated to reach US$ 10,919.4 million in 2032. Re-activation of mature oilfields and growth of oil & gas wells across the global market are the key propelling factors for the logging and bottomhole survey, fishing, and well intervention services. On the other hand, maturing wells require well intervention services such as tubing/packer failure & repair and stimulation to increase the depleting production capacity.
The existing scenario of maturing wells in the Middle East, North America, Africa, and Europe has made these regions the potential markets for well intervention. The development of heavy oilfields is responsible for the high demand artificial lift methods in Latin America. Furthermore, the presence of scattered reserves and highly deviated well in Latin America has increased the scope for geosteering in logging-while-drilling operations.
North America along with Europe and the Middle East, is the lucrative region for various well intervention projects owing to a large number of mature wells that require well intervention solutions to enhance the production and an increase in drilling activities.
How Has COVID-19 Had a Negative Impact on the Well Intervention Market?
COVID-19 pandemic has hindered the growth of oil & gas industry of the country. In the US, as of June 2021, 10.3% of the population was affected with COVID-19, out of which 82.5% have recovered. The oil supply declined by 31%. The US oil prices went below zero for the first time in the history, as a result, contract future prices for West Texas Intermediate (WTI) plummeting from USD 18 per barrel to around to negative USD 37 per barrel.
However, the industry in the US is steadily recovering from the effects of the pandemic. The US had the highest rig count accounting for 39.7% of the global rig count in 2021. Moreover, an increase in the drilling and production activities and the increase in rig count by 60.1% in 2021 as compared to 2020 in the US have resulted in a rise in demand for stimulation, artificial lifts, and wireline activities in the US.
How this Report Will Benefit you?
Visiongain’s exhaustive report on global well intervention provides 308 tables and 330 charts/graphs. Our new research report is beneficial for any stakeholder who intends to gain in depth insights into the global well intervention market in terms of qualitative and quantitative aspects. The report also provides detailed analysis segment wise with COVID-19 impact analysis. Our new report will be highly beneficial for decision making and company positioning as it not only gives global and broad regional analysis but also provides in-depth insights of more than ten countries in various geographic regions. The companies can benefit from our new report by being better positioned for upcoming opportunities and potential threats by being well informed and resultantly taking actions to mitigate those threats. The comprehensive analysis of major players will help the companies to understand their position vis-a-vis their competitors and help in better decision making by the higher management.
What are the Current Market Drivers?
Rising need for enhancing production efficiency of mature oil & gas fields
Mature oil fields are often highly equipped with old infrastructure and equipment. They produce large amount of water than oil, which exhibits significant environmental issues. Well intervention services improve the recovery of oil mature fields and increases their peak production period. New well intervention techniques enable high volume of hydrocarbons that can be produced cost-effectively at mature reserves.
The major oil & gas companies have shifted their focus towards developing new tools and techniques required to exploit bypassed pay zones in mature reserves instead of drilling new wells, which is a cost-intensive process. They are emphasizing increasing recovery and extending the life of mature fields, hence exceeding the natural production levels. The rise in oil & gas production has resulted in the rapid depletion of new fields, which eventually has led to an increase in the number of mature fields.
What are the Current Market Opportunities?
Increase in discoveries of oil & gas reserves
The players operating in the oil & gas industry are focusing on making discoveries as some of the existing fields may create challenges in producing hydrocarbons at an economical rate and require plug and abandonment. Major oil & gas companies have been making extensive discoveries in the onshore and offshore regions.
According to BP Statistical Review 2020, there are still unexplored 1,733.9 billion barrels of proven oil reserves by the end of 2019. These reserves are exhibiting opportunities for well drilling activities, which is expected to create demand for well intervention services. Furthermore, many companies have announced significant discoveries in the African subcontinent. The well production process directly creates opportunities for the well intervention market.
The key players operating in the well intervention market are Schlumberger, Halliburton, Baker Hughes, Weatherford International, and NexTier Oilfield Solutions. These companies have a large customer base, broad product portfolio, high technical capabilities, and global presence. They cumulatively hold a significant share of market and are constantly adopting organic and inorganic growth strategies to gain maximum market share.
The major players functioning in the well intervention market are Altus Intervention, Archer, Baker Hughes, Basic Energy Services, Expro Group, Halliburton, Key Energy Services, NexTier Oilfield Solutions, Nine Energy Services, Oceaneering International, Pioneer Energy Services, Schlumberger, Trican Well Services, Weatherford International, Welltec. The well intervention market is consolidated in nature owing to rise in demand to enhance production in mature oil & gas fields. These companies are extensively focusing on strategies of product launches and developments, contracts, and agreements. For instance, in 2021, Halliburton signed an 8-year agreement with the Norwegian Petroleum Directorate (NPD) to deploy and operate Diskos, the Norwegian national repository of seismic, well, and production data for the oil & gas industry.
The demand for light well intervention activities are carried out largely owing to the rise in demand for coiled tubing services to carry out well intervention activities. In addition, new horizontal drilling activities from offshore developments and increasing shale production across the globe is further driving the growth of well intervention services across the globe.
Rapid increase in the shale production that requires hydraulic fracturing is the key driving factor for the growth of horizontal segment of the global well intervention market. Furthermore, oilfield operators highly prefer horizontal drilling as it provides access to more hydrocarbon pay zones as compared to vertical wells.
North America accounted for the largest regional segment in global well intervention market and projected to continue to be the largest during the forecast period. Rising developments in the shale gas in various regions such as South & Central America, North America, and Asia Pacific is the key driving factor for the well intervention market.
Increase in the number of mature fields in Indonesia, Myanmar, Australia, the South China Sea, offshore fields in the Gulf of Thailand as well as geopolitical challenges has reduced the drilling activities drastically. This has led to a rise in demand for well intervention activities in Asia Pacific and other regions to boost oil & gas production from existing well and meet the growing requirements.
However, the prices of oil products are decided on a commodity basis. Due to which, the fluctuating oil and natural gas prices can negatively impact the exploration and drilling market and ultimately impact the capital spending in well intervention technologies and services.
In addition, stringent government regulations pertaining to greenhouse gases (GHG), alternatives for fossil-based energy sources and climate change, projected to hamper the growth of the companies operating in oil & natural gas exploration and production activities and negatively influence the market growth for well intervention services.
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