The market for liner hanger system is expected to grow at a CAGR of 5.46% during the forecast period of 2019
NEW YORK, June 24, 2019 /PRNewswire/ -- Market Overview
The market for liner hanger system is expected to grow at a CAGR of 5.46% during the forecast period of 2019 – 2024. Major factors driving the market studied are the rising unconventional and deepwater E&P activities, increasing need for higher productivity and efficiency, and the advantage of covering vast areas by a single rig employing long lateral drilling methods. The risk of failure associated with liner hanger systems and the challenges associated with the availability of raw materials are likely to hinder the growth of the market studied.
Download the full report: https://www.reportbuyer.com/product/5786684/?utm_source=PRN
- With the revival of oil and gas prices and kick start of various offshore projects, the offshore segment is likely to register a higher growth rate, as compared to onshore. Moreover, greater degree of complexity in offshore oil & gas reserve formations is expected to push the companies to innovate and develop offshore specific liner hanger system.
- The development of deepwater and ultra-deepwater reserves are likely to act as an opportunity in the future.
- Asia-Pacific is expected to witness the fastest growth during the forecast period. China is by far the largest market in the Asia-Pacific region and is dominated by many local liner hanger system manufacturers unlike many other countries across the world.
Key Market Trends
Increasing Demand from Offshore Sector
- The offshore oil and gas industry accounts for about 30% of the global crude oil production. The Middle East, North Sea, Brazil, and the Gulf of Mexico are the major offshore oil and gas producing regions.
- As of 2017, around 40% of shallow water oil production came from mature regions, such as Europe, North America, and Asia-Pacific. The mechanical liner hangers are deployed in shallow waters, as they are relatively less expensive and technically less challenging for the operators to explore and drill. These systems are in high demand, where the well construction cost is the key priority for the customer.
- More than 60% of the current crude oil prodution comes from mature oilfields including onshore and shallow water. This coupled with low breakeven price in offshore oil & gas sector have compelled the producers to shift toward deepwater and ultra-deepwater resources. This factor is encouraging the industry to step up its expenditure gradually in the future.
- The deepwater oil production is majorly concentrated in four countries – Angola, Brazil, Nigeria, and United States. The Libra field in Brazil, the largest pre-salt discovery so far, began producing in late 2017 and the field development is expected to continue till 2020s.
- The expandable liner hanger system are preferred for deepwater well completion and are designed for applications where long and heavy liners must be deployed in challenging environments, including deepwater, extended reach, and HP/HT wells.
- In September 2018, Halliburton announced the deployment of its XtremeGrip liner hanger system at a depth of 30,924 ft in the Gulf of Mexico Hess-operated Stampede deepwater development. With advent of such deepwater liner hanger technologies, the market is likely to witness a shift from shallow water to deepwater production.
Asia-Pacific to Witness the Fastest Growth
- Asia-Pacific region is expected to witness the fastest growth during the forecast period, with China being by far the largest market. In response to the president Xi Jinping's call of August 2017 to expedite domestic exploration and production activities (particularly for natural gas) to improve energy security, several companies, such as CNOOC, CNPC, and Sinopec, are set to increase their capital expenditure in exploration, development, and production activities. This will mean a significant boost to businesses for liner hanger system in the coming years.
- In addition, the Chinese government is also undertaking significant favourable reforms to boost international participation in the oil and gas sector. As a critical part of the country's 13th five-year plan, the opening up of more acreage to independent participants are expected to diversify investments and increase drilling and completion activities, in turn, driving the liner hanger systems market in the country.
- Further in India, large new field developments in deepwater are expected to be the key drivers for growth in the Indian liner hanger system market. In April 2018, BP and Reliance Industries sanctioned the 2nd phase development of the "Satellite cluster" project, located in the Bay of Bengal.
- The companies in India are moving forward to develop the discovered deepwater gas fields in an integrated series of projects, and are expecting to produce 1 bcf/d, phased over 2020-22. Similar interests are being undertaken in other offshore fields as well, which are expected to result in the country witnessing greater demand for the expandable form of liner hangers in the long run.
- Other developing markets, such as Indonesia, and Australia, are also expected to contribute to the market growth in the region.
Competitive Landscape
The liner hanger system market has been historically dominated by companies, such as Baker Hughes, Schlumberger, Halliburton, and Weatherford International. The years of experience and expertise have made these companies a preferred choice for many drillers across the world. However, in the last fifteen years, the industry has witnessed penetration of various new companies, such as Innovex Downhole Solutions Inc., and Well Innovation AS, which are strengthening their presence in local, as well as global market. Companies are adopting new strategies to sustain the lower oil price environment. Furthermore, improvement in efficiency and lowering the risk associated with liner hanger system are some of the focus areas for the companies manufacturing the system. Moreover, due to the rapid developments in deepwater and ultradeepwater discoveries across the world, companies are now collaborating with operators to meet the technology demands for efficient and low-cost completion process.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
Download the full report: https://www.reportbuyer.com/product/5786684/?utm_source=PRN
About Reportbuyer
Reportbuyer is a leading industry intelligence solution that provides all market research reports from top publishers
For more information:
Sarah Smith
Research Advisor at Reportbuyer.com
Email: [email protected]
Tel: +1 (718) 213 4904
Website: www.reportbuyer.com
SOURCE ReportBuyer
Share this article