New Artificial Lift Systems Engineered with Extended Runlife to offer Growth Benefits to Global Market

The global artificial lift systems market is expected to register a 6.20% CAGR from 2014 to 2020, states a research report by Transparency Market Research (TMR). At this rate, the global artificial lift systems market is expected to reach a value of US$19.80 bn by 2020. There are numerous factors making this remarkable growth rate possible.

The first and foremost is the inherent advantages that artificial lift systems carry. They increase the pressure of the reservoir exactly when the bottomhole pressure is insufficient to push the natural gas or crude oil to the surface of the well. Till date, a large number of gas wells have benefitted from using artificial lift systems. Nearly 10% of the worldwide oil and gas wells possess a natural reservoir drive to pull crude oil to the surface while the remaining are dependent on artificial lift systems.

Artificial lift systems are segmented into two main types: Gas systems and pump systems. Gas systems include a plunger lift and gas lift whereas pump systems comprise a sucker rod pump, progressive cavity pump, and electrical submersible pump. Parameters such as operating cost, geographical location, capital cost, and production flexibility are considered for the selection of artificial lift systems.

Q. Which are the core driving factors of the global artificial lift systems market?

A. The newly introduced artificial lift systems are engineered with extended runlife, quality, and capacity. Moreover, the increasing deepwater oil production is expected to drive the global artificial lift systems market in the near future. The global market is also expected to receive assistance from the matured reserves that account for the highest percentage of crude oil production. Especially in Europe, the demand for artificial lift systems is expected to be high owing to the current discoveries of shale gas in nations such as Poland, Denmark, and Spain. The elevated offshore reserves in countries such as Tanzania and Egypt are likely to boost the RoW market to contribute significantly to the global artificial lift systems market. 

Research Report: http://www.transparencymarketresearch.com/artificial-lift-system-market.html

Q. Are there any growth opportunities, which could help overcome the restraints in the global artificial lift systems market?

A. The global artificial lift systems market is expected to be hampered by fluctuations in the crude oil prices. In the past few years, the price of crude oil has decreased by 50%. This can be due to the weak demand for crude oil in many nations owing to dull economic growth. As per the U.S. Energy Information Administration (EIA), the production of oil in the U.S. shifted from 5.6 mn barrels per day in 2011 to 7.5 mn barrels per day in 2013. Even though the global artificial lift systems market has to experience unfavorable growth conditions due to the decreasing crude oil prices, unconventional gas production will act as a major growth opportunity in the near future.

Q. Will the introduction of new products boost the global artificial lift systems market in the near future?

A. Based on where the global artificial lift systems market stands today, it will be easy to say ‘yes’. The introduction of new products will boost the global artificial lift systems market. For instance, Schlumberger is currently offering a wide range of artificial lift systems for longer life of the well including gas lift, sucker rod pumps, electric submersible pumps, and progressing cavity pumps. With mergers and acquisitions, which are likely to happen in the near future, manufacturing companies are expected to introduce new systems to contribute more to the global market.

Artificial Lift Systems Market Characterized by Ongoing Alliances and Expansion Activities in Vendor Landscape

Driven by the rising production of deepwater oil and the high volume of crude oil in matured reserves, the global artificial lift systems market is poised to expand at a 6.20% CAGR from 2014 to 2020. The value of the global market was pegged at US$13 bn in 2014 and this is projected to rise to US$19.8 bn by 2020.

Some of the top companies competing in the global artificial lift systems market are Flotek Industries, Inc., Weatherford International Ltd., Superior Energy Services, Inc., Kudu Industries, Inc., Schlumberger Limited, Halliburton Company, Borets Company LLC., Baker Hughes, Inc., Dover Artificial Lift, and National Oilwell Varco, Inc.

Here’s a snapshot of some of the recent developments in the artificial lift systems market:

Weatherford’s Expanded Artificial Lift Systems Portfolio: Texas-based oil and natural gas service company Weatherford International Ltd. recently added a new product to its portfolio of existing artificial lift systems. The sand-tolerant pump is aimed at slowing production declines, optimizing the life of oil wells, and reducing workovers, and serves as a substitute for standard rod pumps in wells that have high sand production. The accumulation of sand in the plunger or barrel results in abrasions and the sand-tolerant pump prevents this accumulation, thereby reducing the chances of pump failure or inefficiency. The sand-tolerant pump has demonstrated the improvements made in the design of artificial lift pumps and the overall working in harsh and sand-laden environments.

Cimarron and Keane Group’s Acquisition Activities: Oklahoma-based oilfield equipment provider Cimarron Energy recently acquired North Dakota’s Diverse Energy Systems, bringing in significant design and production experience for operators in North Dakota’s oil and gas industry. Cimarron acquired Diverse’s field and manufacturing assets in North Dakota as well as Texas for an undisclosed amount and the company will now be able to offer artificial lift systems to its clients, along with other offerings such as processing, production, vapor handling, measurement/custody/transfer, and rental equipment. US-based well completion services company Keane Group acquired all of the US assets of Canada-based Trican Well Services for US$247 mn. These ongoing alliances have been significantly driving the North America artificial lift systems market.

Baker Hughes’ New Approach to Artificial Lift Systems: Texas-based Baker Hughes, one of the largest oil field services companies in the world, recently trialed a new adaptive production system, which it says, is a completely new approach to artificial lift systems. The Leap system was first installed in the Mississippi Lime play in Oklahoma at a depth of 5,200 feet. This new system is designed to adapt to changing production profiles that are typical in some of the most unconventional oil wells. Baker Hughes had set up its artificial lift research and technology center in 2014 and has been dedicatedly working on developing new artificial lift technologies.

Browse Research Press Release: http://www.transparencymarketresearch.com/pressrelease/artificial-lift-system-industry.htm

Growing Number of Drilling Wells Fuels Demand for Artificial Lift Systems

With increasing establishment of drilling wells for oil and gas production, installing artificial lift systems has become a widespread solution in the oil and gas industry. Oil and gas producers often develop unconventional plays to explore deeper waters, which further necessitates the installation of artificial lift systems to increase the reservoir pressure, dewater gas wells, or produce liquid hydrocarbon. According to a report published by Transparency Market Research, the global market for artificial lift systems stood at US$13 million in 2013 and is anticipated to reach US$19,806.8 million in 2020. If the figures hold true, the market will exhibit a positive CAGR of 6.20% between 2014 and 2020. 

Browse Market Research Report of Artificial Lift Systems Market: http://www.transparencymarketresearch.com/artificial-lift-system-market.html

Types of Artificial Lift Systems

Artificial lift systems are mainly available in two types – gas systems and pump systems. Pump systems comprise electrical submersible pumps, progressive cavity pumps, and rod lift or sucker rod pumps. Likewise, the market segment of gas systems consists of plunger lift and gas lift. Of these various types of pumps, electrical submersible pumps constitute the oldest specimen of artificial lift system to be available in the market. It is used for subsea, deepwater, onshore, and offshore wells. The selection of artificial lift systems is based on numerous parameters such as production flexibility, capital cost, operating cost, and geographic location. Operating practices, site-specific conditions, and economic considerations are other parameters referred to while finalizing a suitable artificial lift system for the site. 

Browse Market Research Press Release of Artificial Lift Systems Market: http://www.transparencymarketresearch.com/pressrelease/artificial-lift-system-market.htm

Uses of Diverse Artificial Lift Systems

Recent discoveries of shale gas and expanding deepwater oil production are touted as the key factors expected to boost the artificial lift systems market. However, which of the artificial lift systems available in the market is likely to benefit the most depends largely on the usability of these systems. Mentioned in the following bulleted list are the artificial lift systems that are poised to register impressive growth and their respective uses: 

• At present, electrical submersible pumps are widely used for developing wells, due to their high extraction capacity and low operational cost. Field workers have found it easy to operate these pumps owing to their simpler design. Furthermore, these pumps are available in different sizes and have potential to lift a large volume of crude oil, which is a significant factor fuelling its demand from the market. 

• Sucker rod pump or rod lift is the oldest type of artificial lift system in the market. It is used for extraction of crude oil and has the ability to lift heavy and viscous oil even at a very high temperature. In doing so, it incurs a significantly lower operational cost than other systems, which is why rod lifts experience high demand in the artificial lift systems market. 

• The increasing number of offshore reserves is likely to augment the demand for gas lifts at a significant rate. Better longevity, low operational cost, and high efficiency are a few of the factors driving demand for gas lifts in the artificial lift systems market.