North America Well Intervention Market - Growth, Trends, and Forecast (2018 - 2023)
North America is one of the largest markets for well intervention, due to the rigorous drilling and production activity. The region accounts for around 21% and 26% of the global crude oil & natural gas production respectively. The average breakeven price of US shale has declined by around 40% since 2013, due to technological improvement. In the United States, technological advances in hydraulic fracturing have helped the operators increase shale production. Canada has also started hydraulic fracturing to increase production from its fields. Drilling activity in 2018 is at a two year peak, with the addition of 10% active rig count in the first 75 days of the year, Canada is the leader in the growth rate. Drilling activity in Mexico has still not picked up and is at its lowest in the past 22 to 23 years, and hence, lower demand for well intervention is expected in the country.
Increase in Offshore Well Plug and Abandonment Activities Support Market Growth
Demand for offshore plug and abandonment in the Gulf of Mexico (GoM) is primarily driven by the increase in matured fields, ageing offshore platform infrastructure, damage to platforms and pipelines from hurricanes and other windstorms, among other factors. In 2016, twenty-one deepwater structures were decommissioned. Since 2009, usually one or two deepwater structures are being decommissioned per year. Outer Continental Shelf (OCS) of the United States had more than 2,185 platforms. Around 30% of the platforms are non-producing or “idle iron”, providing ample opportunity for plug and abandonment. Plug and abandonment is a type of well intervention that is expected to drive the market.
United States is the largest Market for Well Intervention
As of February 2018, the United States has 968 active rigs and more than a million producing wells, including shale, and is one of the largest markets for well intervention in the world. In 2018, drilling activity in the United States is expected to be positive, with the addition of 51 active rig count in the first 40 days of the year. Permian is the largest hotspot for upstream activities in the country, and other regions are also growing significantly. 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 in the country. With the increase in drilling activity, demand for well intervention market is poised to grow.
Key Developments in the Market
July 2017: General Electric completed its buyout of Baker Hughes Inc., merging it with its own oil & gas equipment and services operations to create the world's second-largest oilfield service provider by revenue. The new company is named "Baker Hughes, a GE Company”.
January 2017: Schlumberger acquired Peak Well System, which is a specialist in the design and development of advanced downhole tools for well intervention, flow control, and well integrity.
The major players include - Schlumberger Limited, Weatherford International PLC, Baker Hughes A GE Co., Halliburton Company, National Oilwell Varco, amongst others.
Reasons to Purchase this Report
Current and future North America well intervention market outlook in the developed and emerging markets
Analyzing various perspectives of the market with the help of Porter’s five forces analysis
The segment that is expected to dominate the market
Countries that are expected to witness the fastest growth during the forecast period
Identify the latest developments and strategies employed by the major market players
3 months analyst support, along with the Market Estimate sheet (in excel)
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