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New Revenue Pockets : Hydraulic Workover Unit Market
Recently, there have been quite a lot of concerns regarding the impact of declining oil prices on the oil & gas industry. The most noted impact is the slowdown of the E&P activities that will result from the lower profit realization for the oil & gas operators and for the hydraulic workover unit market players as well. However, the increasing production from the shale basins of North America and the conventional reservoirs of the Middle East countries have created a demand for the hydraulic workover unit as the hydraulic workover unit finds use in every aspect of the well development activity.
In addition to this, the increasing energy demand particularly from countries such as China and India. Also, the depletion of existing reservoirs has created a need for slow down in the production decline in mature reservoirs and to identify best production practices that will lead to extended well life.
Hydraulic workover unit has become an integral part of the lifecycle of an oil and/or gas well, driven by rising petroleum production both from the new as well as from aging fields. The soaring demand of energy and the maturity of existing oil fields have also increased the demand for hydraulic workover unit during the E&P activities. Furthermore, hydraulic workover unit provides the operators with increased flexibility in planning a cost effective well intervention operation.
The growing oil & gas activities in countries such as the U.S. and Saudi Arabia would benefit from the hydraulic workover unit operations. This could be used in both the new as well as old wells for exploration & appraisal and the production & development phase. The increasing technological advancements in oil & gas industry have raised the need for efficient extraction of reserves thus boosting the demand for the hydraulic workover unit across the globe.
North America and Asia-Pacific are projected to be the largest markets for hydraulic workover unit by 2019. Between the two regions, North America is the largest market for hydraulic workover unit, with the U.S. occupying the lionís share. Meanwhile, Middle East is the fastest growing market due to the high production of oil & gas in the region. Hydraulic workover unit can be segmented on the basis of the service into workover services and snubbing services.
The hydraulic workover unit market is also classified on the basis of applications such as its use in onshore and offshore regions.
Companies in the hydraulic workover unit market are focusing more on contracts to develop their customer base and to expand in to new regions. Companies are also entering into contracts with major E&P operators, which are expected to allow them access to operations in challenging environments such as offshore regions.
Companies such as Nabors Industries Ltd. (Bermuda), Key Energy Services (U.S.), Superior Energy Services, Inc. (U.S.), and Halliburton Company (U.S.) are the dominant players in the hydraulic workover unit market.
Hydraulic Workover Unit Market by Application (Onshore, Offshore), by Services (Snubbing, Workover), and by Region - Global Trends & Forecast to 2019
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