Artificial lift systems are used in oil production for lifting crude oil to the surface from reservoir or well. They aid in improving production rates, increasing efficiency and optimizing oil recovery by lowering production lifting costs. Artificial lift systems include beam pumping, gas lift, plunger lift, electric submersible pumps (ESPs), progressing cavity pumps (PCPs), and rod lift. Majority of mature oil wells require artificial lift systems as the pressure in the reservoir declines over time. In 2024,
The Global Artificial Lift Systems Market is estimated to be valued at US$ 8.46 Bn and is expected to exhibit a CAGR of 7.8% over the forecast period of 2024 to 2031.
Key Takeaways
Key players operating in the artificial lift systems are GE Oil and Gas , John Crane Group , Baker Hughes Company , Apergy , Borets International , Schlumberger , Haliburton , Dover Corporation , AccessESP , Novomet , National Oil Well Varco Inc. , Weatherford , OILSERV , JJ Tech , Flotek Industries Inc. , Schlumberger , cairn Oil & Gas, Alkhorayeh Petroleum Services Limited. Majority of these players are providing innovative product offerings to gain a larger share.
Key opportunities in the market include increasing investments in unconventional oil and gas production such as shale oil and gas. Rising energy demand worldwide along with depletion of conventional reserves is encouraging growth of unconventional reserves. This provides huge opportunities for artificial lift system providers.
On global level, major companies are strategizing their expansion plans in high growth regions including Asia Pacific and Middle East regions. Owing to increased oil production from offshore fields and rising mature fields in these regions, artificial lift systems providers are targeting these regions.
Market Drivers
Rise in offshore oil production is a major driver for Artificial Lift Systems Market Growth. Despite declining conventional oil reserves, offshore reserves continue to grow significantly and account for over 31% of global crude oil production. Offshore fields require artificial lift systems from early production stages itself owing to characteristics of reservoirs located under deep seabed.
Market Restrain
Fluctuating oil prices remains a key challenge as it affects investments in oilfield artificial lift systems by Exploration and Production (E&P) companies. Lower oil prices discourage CAPEX of E&P companies in mature oilfield development and enhanced oil recovery projects wherein artificial lift systems have applications. This impacts demand for artificial lift systems in short term.
Segment Analysis
The artificial lift systems market is dominated by electric submersible pumps owing to their ability to handle large amounts of fluids under high pressures. The application of electric submersible pumps has expanded from onshore to deepwater operations as advancing technologies have improved their reliability in corrosive and high-temperature environments. Progressing cavity pumps hold the second largest share and are commonly used in heavy oil reservoirs for their ability to handle high viscosity fluids. Rod lift systems are also widely adopted for their simplicity and effectiveness in extracting fluids from shallow horizontal and deviated wells. Reciprocating pumps see significant usage as a cost-effective solution for oil and gas fields involving startup/shutdown cycles.
Global Analysis
The artificial lift systems market is led by North America due to large-scale productions from shale plays and the presence of major operators in the US and Canada. The Asia Pacific region is anticipated to emerge as the fastest-growing market propelled by increasing oilfields development in countries like China, India, and Indonesia. The growing number of mature oilfields across the Middle East and Latin America positions these regions among the other major revenue generators. Meaningful opportunities also exist in Africa supported by the continent's substantial hydrocarbon reserves and rising oil & gas expenditures.
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About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.
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