South and Central America Well Intervention Market - Growth, Trends, and Forecast (2018 - 2023)
The South and Central American oil & gas industry is dominated by Brazil, Venezuela, and Argentina. Brazil and Argentina have recorded underinvestment in the oil & gas industry, under the regime of their respective past governments. The new governments in both these countries have incorporated several changes in regulations, to attract investments in the upstream oil & gas industry. The new reforms with support from crude oil price above USD 60 per barrel mark, are expected to drive the upstream oil & gas activity, thus driving the well intervention market.
Argentina’s Attractive Investment Scenario Supports the Market
Argentina’s previous administrative policies have resulted in underinvestment in the upstream oil & gas sector. The new government is focused on making the upstream sector attractive and has developed a constructive pricing framework. The government reduced high subsidies on natural gas, gasoline, and electricity prices, in 2016. The government is planning to eliminate natural gas subsidies by 2022 and increase the prices for upstream gas producers, to attract sufficient investment in production. The move is in line with its aim to become self-sufficient in terms of energy. The business-friendly environment of Argentina is expected to the boost the production of natural gas, thus boosting the demand for well intervention activities.
Recovery in Brazilian Oil & Gas Industry Drives the Market
The Brazilian oil & gas industry has been on a setback, due to lack of investment over the past few years. The new conservative government in the country has introduced several reforms, such as ending Petrobras’ monopoly over the countries prolific hydrocarbon resources and opening the hydrocarbon reserves to foreign companies. The production from the country has increased after the new government came into power in 2014. Due to a decline in crude oil prices, the growth rate of oil production declined. As the price has now stabilized and crossed USD 60 per barrel, the production is expected to increase further. The country is aiming for an additional oil production capacity of around 2 MMb/d by 2027, mostly from deepwater. As a result, with an increase in production, the market studied is expected to grow.
High Inflation Restrains the Market
Venezuela has the largest total proven reserve in the world and is one of the major countries in the region, for the oil & gas industry. The country is facing hyperinflation. The prices have increased by 4068% over the past 12 months, and the inflation in January alone was 84.2%. Therefore, the country is undergoing an economic crisis. Argentina is also suffering from inflation. In November 2017, the inflation rate was above 20%. Further, with the withdrawal of gas subsidy and rising inflation, the laborers in the country are demanding for higher wages. As a result, the cost of doing business is high in Argentina. Hence, due to hyperinflation in Venezuela and inflation in Argentina, the oil & gas upstream activity is expected to be restrained, thus negatively influencing the well intervention market.
Notable Developments in the Market
January 2017: Schlumberger acquired Peak Well System, is a specialist in the design and development of advanced downhole tools, for well intervention, flow control, and well integrity.
Major Players: Schlumberger Limited, Weatherford International PLC, Baker Hughes A GE Co., Halliburton Company, Aker Solutions, Superior Energy Services Inc., Archer, National Oilwell Varco, and Expro Group, amongst others.
Reasons to Purchase This Report
Current and future South and Central American well intervention market outlook.
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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