New York
City, 23 January 2019: The global Well Intervention Market is anticipated to reach USD 8.53 billion in 2017 and is
estimated to grow at a CAGR of 4.1 % from 2018 to 2026. Well Intervention
market is anticipated to witness significant growth over the forecast period.
Maintaining wellbore stability, lubricating and cooling the drill bit,
controlling formation pressures, removing cuttings from the wellbore, sealing
permeable formations while drilling, and well control are some of the functions
offered by well intervention services. The selection of well intervention services
varies based on wellbore demands, rig capabilities, and environmental concerns.
Increasing energy demand on account of
the growing population and increasing industrialization has led to a
large-scale requirement for exploration activities. Increasing participation to
sustain the energy demand coupled with the growing number of deep-water
discoveries is projected to drive well intervention services in the next few
years. The service providers have been shifting their focus toward developing
new solutions based on nanotechnology to overcome technological and
environmental challenges.
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Initial capital
investment in well intervention equipment manufacturing is high owing to the
highly complex methods involved. Major companies rely on regional and local
distributors to gain traction in the market. However, changing application
requirements are forcing manufacturers to invest in R&D and find innovative
solutions. Overall, the threat of new entrants is expected to remain low on
account of the high capital invest required and stringent government
regulations to be adhered to.
Leading well
intervention equipment manufacturers are integrated along with drilling
operations and have a large distribution network across the globe. Thus, they
have enhanced control over the equipment & service pricing. Buyers have the
advantage of entering into long-term agreements with suppliers based on their
requirements. This is expected to lower the cost of switching manufacturers and
increase buyer power. Thus, buyer power is expected to remain medium to high
over the forecast period.
Majority of the companies offering well
intervention services have their own manufacturing plants for the related
equipment. These companies are also actively investing in R&D to come up
with innovative high-performance well intervention equipment. Companies have
entered into forward integration to expand and strengthen their presence.
Companies such as Schlumberger,
Weatherford International, Halliburton, Archer Limited, and Baker Hughes have
forward integrated their operations with presence in both manufacturing and
service providing sectors.
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