Artificial Lift Systems Market is driven by Increasing Depletion of Conventional Oil and Gas Reserves

 

Artificial Lift Systems Market

Artificial lift systems are increasingly being adopted to enhance oil and gas production from mature fields as they undergo depletion. These systems aid in extracting higher volumes of oil and gas from reservoirs with declining formation pressures. The need to optimize recovery from aging oilfields is driving the adoption of artificial lift technologies such as rod lift, ESP, PCP, gas lift and plunger lift systems. The declining natural reservoir pressures prompt operators to use artificial lift methods to boost recovery from older wells. Moreover, with newer unconventional shale reserves extending significantly deeper underground, artificial lift systems play a crucial role in the economic viability of such fields.

The global artificial lift systems market is estimated to be valued at US$ 8.46 Bn in 2024 and is expected to exhibit a CAGR of 7.8% over the forecast period 2024 to 2031.

Artificial lift technology helps maximize production from oil and gas wells with declining formation pressures. Rod lift, ESP, PCP, gas lift and plunger lift systems enhance production volumes across onshore and offshore fields. The growing depletion of conventional reserves worldwide has intensified the need for artificial lift systems to optimize recovery from maturing oil and gas assets.

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.

The rising global energy demand along with depleting conventional reserves is driving the need for cost-effective production from mature oilfields, boosting the artificial lift systems market. Operators are increasingly adopting artificial lift technologies to squeeze out higher recovering rates and optimize the economics of aging assets.

Geographically, North America dominated the artificial lift systems industry in 2021 led by increasing shale drilling activities in the US. However, the market is witnessing stronger growth in the Middle East and Asia Pacific with rising investments to boost production from onshore and offshore fields in the regions. Key players are also expanding their geographical footprints and service capabilities to capitalize on opportunities in emerging markets.

Market Key Trends

One of the key trends driving the Artificial Lift Systems Market Demand is digitalization and automation of oilfields. Operators are increasingly incorporating Industry 4.0 solutions such as IoT, AI, cloud computing and data analytics to optimize production performances of artificial lift equipment. Digital oilfield technologies help reduce downtime, improve asset reliability and enhance recovery through real-time performance monitoring and remote operation of artificial lift installations. This trend is allowing oil companies to maximize uptime and economic returns from maturing oilfields.

Porter's Analysis

Threat of new entrants: The artificial lift systems market requires substantial capital investment and technical knowledge which poses barrier for new companies. Bargaining power of buyers: Individual buyers have less bargaining power compared to large oil and gas companies in the market. Bargaining power of suppliers: A few large multinational companies dominate the supply market. Threat of new substitutes: Limited substitutes are available for artificial lift systems in mature oil fields requiring enhanced oil recovery methods. Competitive rivalry: Market remains competitive with continuous technological advancements and partnerships between operators and oilfield service providers.

Geographical regions with highest market value

North America remains the largest market for artificial lift systems, accounting for over 35% of global market value currently. This is attributed to large established oilfields in the US requiring artificial lift systems to boost declining production levels. Countries like the US, Canada and Mexico will continue driving demand.

Fastest growing geographical region

Asia Pacific region is poised to witness the fastest growth during the forecast period led by China, India and countries in Southeast Asia. Significant upcoming shale and tight oil developments require artificial lift solutions, fuelling growth. Countries are investing heavily in oilfield infrastructure to boost domestic production. Ongoing capacity additions in conventional offshore fields will further augment regional market.

Get more insights Artificial Lift Systems Market

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.

(https://www.linkedin.com/in/ravina-pandya-1a3984191)

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