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Artificial Lift Systems - The Answer To Well Maturity
The Artificial Lift Systems Market report categorizes the global market of artificial lifts in the oil and gas industry, on the basis of product types, and geography; forecasting revenue and analyzing trends.
With an incessant rise in demand for energy and depleting reserves, the main focus is to explore unconventional resources of hydrocarbons and enhance the recovery of matured wells, which gives an impetus to artificial lifts.Driven by the explorations in deepwater and maturity stage ofoilfieldshave increased the demand for high productivity rate to recover oil and efficiently at optimal cost.
The lifecycle of a well commences at the Primary recovery, when the difference in natural reservoir pressure and surface is sufficient to lift crude up the well bore.Depending upon reservoir conditions, the natural flow may continue for many years till all the easily accessible hydrocarbons are recovered. As production continues,the output reaches its peak, and thereafter follows a gradual decline.As the pressure inside gradually depletes over time, it necessitates the application of external interventions to sustain productivity, which helps recover approximately 35.0% of the reserves. These interventions range from basic techniques such as injection of water to sophisticated techniques of artificial lifts, as the well moves to the enhanced recovery stage through the Secondary recovery and Improved recovery stages. It is found that, depending on the productivity and complexity, the secondary recovery fieldsare the most active, and represent a high value artificial lift sector.
Selection of Artificial Lift Systems Market is a critical process, and it depends on varying parameters that range from subsea conditions, fluid types, required rate, completion configuration, surface facilities to overall project economics. Based on different applications, there are different types of lifts. Some of them are as follows:
Rod Lift- This is one of the most commonly used typeof lift that uses a positive displacement mechanism. It is characterized by high system efficiency and low maintenance cost.However,due to limited production capacity, it is generally used in harvest fields and stripper wells.
Progressive Cavity Pump(PCP)- It is comprised of a single helical rotor that turns inside a double helical stator. PCP has a low capital cost and is effective in pumping heavy oil; however, it limited by high power consumption.
Electric Submersible Pump(ESP)- It has the highest market share, and includes a centrifugal pump unit driven by an electric motor. ESP is mainly used in secondary recovery for medium to high volume production.It drives high capacity, but is limited by its inability to pump sand.
Hydraulic Jet System- This is generally used for high volume and high depth recovery, but has a very high capital cost.
Gas lift- It is one of the fastest growing markets, used inshallow offshore oilfields. However, this system requires natural gas in its vicinity.
The various types of lifts selected, depend on well characteristics.Each is suitable for specific lifting requirement and has a distinct operational objective.
The ecosystem of the lift market comprises of pump and component manufacturers such as Weatherford International Ltd&Lufkin Industries Inc., suppliers and distributors of lift systems such as CE Franklin Ltd,and finally the contractors and E&P companies such as Schlumberger Limited and BP Plc. The general trend is that every lift manufacturer is dominant in a particular lift technology and has developed core competency for the same. However, the market is going througha phase of transformation. With a rise in demand for artificial lifts, the players are growing organically and inorganically, characterized by several M&A activities that resulted in significant market consolidation in the past two years. Equipment companies are fostering economies of scope by acquisitions.The Oil & Gas services companies go for product development in artificial lifts, E&P companies are venturing into vertical integration to get into this market, by creating strategic alliances with equipment companies to sustain their competitive advantage.
As most of the world’s giant conventionalreserves have already been discovered, and dependency on matured fields increasing, easy hydrocarbon is a thing of the past.About 91% of the wells are equipped with lifts.Presently, in someof the wells even the initial productionstarts with an artificial lift. The reserves which were earlier considered marginal, have become profitable with these systems. With a rise in oil prices, the companies are now determined to extract the last drop of oil, this will bring in more investment in this sector and technological innovations for artificial lifts.
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