The global artificial lift systems market has been envisaged in a report authored by Transparency Market Research (TMR) to be characterized by an intensified level of competition. On account of the high intensity competition in the market, companies could look to invest more in product developments for the purpose of improving their service to customers. A broad focus on research and development has been anticipated to be on the cards to devise effective methodologies for bettering the extraction rate of hydrocarbons and offering customized solutions specific to customer requirements and well sites.
Some of the popular players that have been identified to possibly make a mark in the global artificial lift systems market are National Oilwell Varco, Inc., Flotek Industries, Inc., Borets Company LLC, Weatherford International Ltd., and Schlumberger Limited.
As per the analysis of TMR, the global artificial lift systems market has been prophesized to raise a revenue of US$19.8 bn by 2020. According to product, electrical submersible pump could draw a weighty share in the market due to its high extraction rate and low operational cost. By geography, North America could register a higher share by the end of the forecast period owing to the advancement of shale gas discoveries.
Rising Energy Demand Puts Exploration of Unconventional Reserves under Limelight
The world artificial lift systems market has been prognosticated to rake in a growing demand because of the snowballing presence of matured reserves that hold a significant volume of crude oil. The growth in demand could also be accredited to increasing deepwater oil production. The augmenting demand for energy has caused the overexploitation of conventional resources owing to elevating dependence, thereby resulting into their depletion. In this regard, vendors have been forecasted to take advantage of the rising exploration of unconventional reserves in response to the shift in focus toward tight oil, shale oil and gas, natural gas, and other unconventional resources.
The existence of low-pressure oil reserves in developed regions such as North America and extended allocation of budget for infrastructure development in developing regions such as Asia Pacific have been expected to propel the growth of the world artificial lift systems market. Surging infrastructure development in Asia Pacific could benefit the market for the reason that it escalates the demand for petroleum products.
Fluctuating Crude Oil Prices Discourage Further Uptake of Artificial Lift Systems
The reducing price of crude oil has been foreseen to be a major factor that could inhibit the demand in the international artificial lift systems market. Furthermore, any fluctuation in its prices could adversely impact investments in the market seeing that equipment costs and capital requirement are high. The risk of pump failure from gas locking or solids production resulting into extortionate operational cost could be another factor hampering the demand in the market.
Nevertheless, modern technologies related to automated services and web-based monitoring that help to optimize production and drill deep into oil fields have been envisioned to birth new opportunities in the international artificial lift systems market. Gas lifts could steady the growth of the market by increasing the demand with their longer lifespan and higher efficiency attributes. Rod lifts, on the other hand, could be used for down-hole pressure well applications and multiple completions. Moreover, they incur low operational cost because of their ability to lift heavy viscous oil at high temperatures.