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.
 |
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.
No comments:
Post a Comment