Global Well Intervention Market - Growth, Trends, and Forecast (2018 - 2023)
The upstream oil & gas activity in 2017 showed sign of recovery from the downturn and in 2018 the outlook is expected to be more promising. The similar trend is expected to be followed by well intervention activities. The United Kingdom Continental Shelf witnessed the end of the sharp reduction in investment, end of underinvestment in Brazil and Argentina with strong government support and robust activity in North America is expected to help in the growth of well intervention market.
Increase in Hydraulic Fracturing is Driving the Market
Hydraulic fracturing market is expected to register a CAGR of more than 5% during the forecast period (2018-2023), which in turn, propel the well intervention market. Currently, the United States is the leading player in hydraulic fracturing, but several other countries, like Argentina, Canada, and China are expected to draw significant attention for hydraulic fracturing during the forecast period, thereby driving the market.
Recovery in South America Oil & Gas Industry is Supporting the Market
Brazil and Argentina are important countries in South America’s oil & gas industry and accounts for 47% of rig count and 43% of crude oil production in the region. The new government in both the countries have made the oil & gas business more attractive, and the disinvestment scenario has come to an end. The Argentine government is planning to eliminate natural gas subsidies by 2022 and increase the prices for upstream producers, to attract sufficient investment in production. In Brazil, the new government has ended the monopoly of Petrobras over the countries prolific hydrocarbon resources and has opened the hydrocarbon reserves to foreign companies. The country is aiming for additional oil production capacity of around 2 MMb/d by 2027. The positive outlook for oil & gas industry in these countries is expected to support the market.
United States is one of the Largest Market for Well Intervention
As of February 2018, the United States has 968 active rigs and more than a million producing well, and is one of the largest markets for well intervention in the world. Drilling activity in the United States in 2018 seems to be positive with the addition of 51 active rig count in the first 40 days of 2018. Also, the government has opened around 98% its coastal water for drilling, which was earlier not allowed. As a result, the drilling activity is expected to further increase. With the increase in drilling activity, well intervention activities also increasing.
Key Developments in the Market
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