Artificial lift systems are used to increase the pressure of the reservoir when the bottomhole pressure is not sufficient enough to push the crude oil or natural gas to the surface of the well. Artificial lift systems can also be used to generate flow from a well, which does not have any flow. They are also used to increase the flow from a well to produce fluids at a higher rate. Majority of the oil wells require artificial lift systems at one point or other in the entire life of the reservoir. Large number of gas wells has benefitted from artificial lift systems to separate the liquids from the formation, so that gas can easily flow at a higher rate. Approximately 10% of the total oil and gas wells in the world posses the natural reservoir drive to bring crude oil to the surface, while the rest depend on artificial lift systems. Artificial lift systems are also employed in wells which have sufficient pressure in the beginning, but with the passage of time, the pressure in the well decreases, thereby generating demand for artificial lift systems.
Artificial lift systems are broadly segmented into two types: pump systems and gas systems. Pump systems consist of electrical submersible pump, sucker rod pump or rod lift and progressive cavity pump. Gas systems include gas lift and plunger lift. Electrical submersible pump is one of the oldest types of artificial lift systems and is used for deepwater, subsea, offshore and onshore wells. The selection of artificial lift systems depends on numerous parameters such as geographic location, production flexibility, operating cost and capital cost. It also depends on operating practices, economic considerations, and site-specific conditions.
Presently, electrical submersible pumps are widely used artificial lift systems for producing wells owing to their high extraction rate and low operational costs. These pumps can be easily operated by field workers due to their simpler design. Electrical submersible pumps have the potential to lift large volumes of crude oil. They are easily available in different sizes, and presence of scale and sludge formation does not hamper its work performance, hence high operational efficiency can be maintained. They can work efficiently in wells with crooked or deviated holes.
Rod lift or sucker rod pump is the oldest type of artificial lift system utilized for the extraction of crude oil. They have the potential to lift heavy viscous crude oil at high temperatures, thereby incurring low operational expenditures. The applications of rod lift include multiple completions, down-hole pressure wells and lifting of heavy viscous oil.
With the increase in number of offshore reserves, demand for gas lifts is expected to increase at a significant rate. Low operational cost, longer life span and high efficiency and are some of the key drivers that boost the demand for gas lifts in the artificial lift systems market.
North America is projected to be the region with the highest potential for the artificial lift systems market by 2020. With the advent of shale gas discoveries, demand for artificial lift systems is projected to rise at a substantial rate in the near future in North America. Countries in North America such as the U.S. and Canada have large reserves of shale gas that present enormous opportunities for the artificial lift systems market. Plunger lifts are commonly used artificial lift systems for horizontal shale wells. Plunger lifts utilize the well’s own energy, pressure or gas to lift the accumulated fluids from wellbore to wellheads.
Baker Hughes, Inc., Borets Company LLC, Dover Artificial Lift, Flotek Industries, Inc., Halliburton Company, Kudu Industries, Inc., National Oilwell Varco, Inc., Schlumberger Limited, Superior Energy Services, Inc., and Weatherford International Ltd. are likely to dominate the artificial lift systems market in the coming future.
The artificial lift systems market report by Transparency Market Research provides in-depth analysis of the global artificial lift systems industry. The report divides the market on the basis of product type and region. It also provides the forecast and estimates for each product and region. The report analyzes demand and supply characteristics of the market by providing detailed forecast and analysis of revenue for the period 2014 - 2020.
The artificial lift systems market primarily includes six types of products: electrical submersible pumps, rod lift or sucker rod pump, progressive cavity pump, hydraulic pump, gas lift and plunger lift. Electrical submersible pump is expected to be the most dominant product segment in the global artificial lift systems market by 2020. The segment accounted for the largest share of the artificial lift systems market in 2013. Rod lift is one of the oldest methods used for lifting crude oil and natural gas. This is primarily attributed to its potential to lift heavy viscous crude oil at high temperatures. Additionally, matured reserves account for a significant percentage of crude oil production. In the present scenario, over 70.0% of the total crude oil production comes from matured reserves. Thus, matured reserves act as a key driver for the artificial lift systems market. The selection of artificial lift systems depends on various parameters such as operational cost, geographic location, flow rate, and well deviation.
North America is projected to be the largest market for artificial lift systems by 2020. With the discovery of shale gas reserves and rise in number of drilling activities, especially in the U.S. and Canada, the market for artificial lift systems is likely to rise at a substantial rate in the region. Demand for artificial lift systems is also projected to rise at a significant rate owing to the vast discoveries of shale gas reserves in Poland, Spain and Denmark. Various types of artificial lift systems are used to extract large volumes of crude oil and natural gas in Europe. Numerous petroleum companies are installing artificial lift systems for extracting high volumes of crude oil and natural gas to maintain energy security in the respective countries.
Demand for artificial lift systems is estimated to rise in RoW owing to the discoveries of offshore reserves in countries such as Tanzania, Mozambique and Egypt. Furthermore, increase in the number of exploration and production activities in Latin America and West Africa, especially in offshore reserves, has propelled the growth of the artificial lift systems. Currently, large volumes of crude oil and natural gas are being imported from countries in the Middle East. RoW countries such as Nigeria, Angola and Venezuela have large petroleum reserves. These reserves help maintain energy security and also to a certain extent bridge the prevailing energy demand-supply gap across the globe.
The report includes geographical regions such as North America, Asia Pacific, Europe and Rest of the World (RoW). Every region has been further bifurcated on the basis of the product segment. Revenue forecasts and estimates for each product segment have been provided for the period 2014 – 2020.
The report also provides detailed analysis and revenue of companies such as Baker Hughes, Inc., Borets Company LLC, Dover Artificial Lift, Flotek Industries, Inc., Halliburton Company, Kudu Industries, Inc., National Oilwell Varco, Inc., Schlumberger Limited, Superior Energy Services, Inc., and Weatherford International Ltd. are expected to dominate the market for artificial lift systems in the near future.
With the help of Porter’s Five Forces analysis, the report provides a detailed analysis of the various factors influencing the artificial lift systems industry. The analysis also helps to understand the degree of competition prevalent in the market. Furthermore, the report analyzes the value chain and various drivers and restraints of the artificial systems market.
Artificial Lift Systems Market: Product Type Analysis
- Electrical submersible pump
- Rod lift
- Progressive cavity pump
- Hydraulic pump
- Gas lift
- Plunger lift
Artificial Lift Systems Market: Regional Analysis
- North America
- Asia Pacific
- Rest of the World (RoW)