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New Revenue Pockets : Well Intervention Market
The rise in the demand for energy sources has increased oil & gas exploration & production activities around the globe. Recently, there have been quite a lot of developments in terms of offshore and unconventional exploration & production. Increasing world energy demands have pushed the Exploration and Production (E&P) companies to move their limits towards unconventional and deeper hydrocarbons resources. These E&P activities for unconventional and deeper resources require different well intervention services.
The soaring demand for energy and maturity of existing oilfields have intensified a major portion of the upstream oil & gas capital expenditure towards new fields for exploration and production. An increase in exploration activities has resulted in the rise in the number of well counts, ultimately raising the demand for well intervention services.
The well intervention market caters to a wide range of services. The demand for latest technologies acts as a supplementary factor, leading to the growth of the well intervention market. Some well intervention services include logging & bottomhole survey, tubing/packer failure and repair, remedial cementing, zonal isolation, sand control services, artificial lift services, fishing related jobs, and re-perforation among others. The extent of the usage of these services significantly varies with the age of a well.
Growth in the count of oil & gas wells is one of the key driving factors for the well intervention market. At its growth phase, newly drilled oil & gas wells demand intervention services, such as well logging, fishing, and sand control services. On the other hand, the existence of mature wells increases the demand for well intervention services, such as tubing/ packer failure & repair and stimulation for depleting wells, in addition to tubing and packer failure for older wells. This is due to production activities and zonal isolation of the different layers, where there is high water cut.
The key players of the well intervention market include Schlumberger (U.S.), Island Offshore (Norway), Welltec (Denmark), Statoil (Norway), FMC Technologies (U.S.), Interwell (Norway), Trican Well Services (U.S.), Huisman (The Netherlands), and Key Energy Services (U.S.) among others. A large number of service providers operate in the onshore market due to the need for less capital expenditure. In contrast, the market in subsea activities requires high investment and technologically driven processes.
Offshore exploration in challenging conditions, shale reserves, and increasing usage of well intervention services in emerging regions such as Africa and the Asia-Pacific, further boosted by the shale boom, have created new revenue pockets for the well intervention market. These revenue pockets are further complemented by the emergence of new safer and efficient technological enhancements.
Asia-Pacific and Africa are likely to be emerging markets for well intervention services during the forecast period. Apart from the regions mentioned above, other areas are also expected to witness a decent growth from 2014 to 2019.
Well Intervention Market by Services (Logging & Bottom Hole Survey, Tubing/Packer Failure & Repair, Stimulation, Artificial Lift, Others), Application (Onshore & Offshore) & Region - Global Trends & Forecast to 2019
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