Growing the Well Completion Equipment and Services Market by Increasing Oil and Gas Exploration and Production Activities
Well completion is the process of making an oil and gas well ready for production after drilling operations. The completion process includes running the production tubing, setting the down hole tools, and numerous other operations, as well as perforating and stimulating as required, which are carried out for making the well ready for the production. Increasing production and exploration activities and an increasing number of rigs worldwide are expected to augment the market growth. For instance, in November 2019, KCA Deutag received contracts of around US$ 460 million for drilling and exploration operations in the Middle East, Europe, and Africa.
Moreover, ONGC plans to increase crude oil production from 22.6 million tons in 2017 to 26.42 million tons in 2022. In terms of geography, the well completion equipment and services market is divided into six regions, such as North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America is expected to witness substantial growth in the market due to the increasing production and exploration activities in the region. For instance, in 2019, North America produced around 24.61 million barrels of oil per day. However, high drilled but uncompleted well count in the United States is expected to hamper the well completion equipment and services market growth.
Asia Pacific is also expected to witness robust growth in the market due to increasing energy demand from emerging economies such as China, and India. India’s demand for energy is expected to double from 700.50 Million Tons of Oil Equivalent (MTOE) in 2015 to 1,516 MTOE in 2035, according to India Brand Equity Foundation. However, key players operating in the well completion equipment and services market are focused on increasing the production capacities to meet the increasing energy demand of this region.
Furthermore, the increasing focus towards the deepwater oil and gas reserve is expected to propel the completion equipment and services market growth. Moreover, offshore oil and gas production and exploration activities have considerably grown over the last few decades. the increasing offshore oil and gas production and exploration activities across the world are expected to drive the growth of the market. For instance, the Brazilian government is aiming 2 MMb/d (Million Barrels per Day) of additional oil production by 2027, especially from deepwater areas.
