The global market of well intervention reached an estimated value of nearly US$6bn in 2017 and is likely to expand at an impressive six per cent CAGR value over the 2018-2026 period, according to a Fact.MR report
Because of the rapid depletion of existing reserves and the constant demand for oil and gas, heavy investment in the discovery of new oilfield reserves is expected to translate into the growth of the well intervention market.
Increasing offshore exploration and production (E&P) activities to impact well intervention market growth
Depletion of onshore oil and gas assets and declining shallow water resources have spurred technical advances that enable offshore exploration and production in deeper environments, which can largely contribute to the demand for well-intervention solutions and services.
Rising subsea well counts and the need to improve recovery rates from developed fields are likely to be the vital factors driving well intervention market growth. Increasing demand for energy has also led to increased expenditure on various oil and gas assets, including shallow, deep, and ultra-deepwater, which can fuel the growth of the market for well intervention.
With many E&P companies and oilfield operators shifting their investments and exploration efforts toward offshore assets to uncover large discoveries, the global market of well intervention is likely to gain high traction in the near future. To date, more than 70 per cent of new discoveries are considered to be found in offshore areas.
North America to account for relatively high revenue share in well intervention market
North America was registered as the largest market for well intervention in 2017, contributing total revenue of more than US$3bn, and the trend is likely to continue during the evaluation period. The well intervention market in North America is expected to be concentrated in the US, which has drilled more than 14,000 wells in 2016 and is planned to explore more field wells in the years to come.
Growing at a predicted CAGR of 6.4 per cent during the period 2018-2026, the market for well intervention in North America can gain high traction on the back of technical advances along with an increase in the exploitation of unconventional oil reserves.
Scaling demand for light well intervention fosters market expansion, coiled tubing services take the centre stage
Light well intervention is projected to lead the overall market, holding more than half of the share in 2017, followed by the segment of medium wells. More than 6,000 subsea well existed worldwide in 2016; pressure to boost oil recovery rates from wells is expected to boost demand for subsea light well intervention services in the near future.
In addition, advances in technologies have significantly reduced the intervention cost by nearly 50-60 per cent as compared to drilling rigs, which is expected to be highly impactful on the growth of light well intervention market. Apart from being a cost-effective alternative, light well intervention enables more operations, resulting in better repair and exploration of subsea wells. This, in turn, will continue to complement the future expansion of well intervention market.
Coiled tubing services have gained speedy momentum for their efficient and reliable intervention for different types of wells including live, horizontal, vertical, and highly deviated wells. In addition to the rising scope of application, coiled tubing services are most sought-after for their ability to improve well and reservoir performance, which will remain one of the important factors to accelerate the overall growth of well intervention market.
Rise in investments in the renewable energy industry to restrain well intervention market
Several government organisations and regulatory bodies have imposed strict carbon emission regulations and standards, resulting in heavy investment in solar and wind technologies. The growing shift to renewable energy-based power may hinder the growth of the market for well intervention. Furthermore, volatility in crude oil prices is likely to have a negative impact on the market for well intervention.