Oil and Gas Downhole Vibration Monitoring and Control: Introduction
- Rapid globalization has led to a surge in demand for energy. Oil and gas plays a vital role in meeting the increasing demand for energy. Natural gas is the cleanest burning and fastest growing fossil fuel, contributing almost one-third of total energy demand growth through the last decade. Oil is the raw material that is used as feedstock for many chemical products. Gasoline is extracted from oil, which plays an important role as a conventional fuel.
- The oil & gas industry is mainly divided into three major components: upstream, midstream, and downstream. The upstream component consists of drilling and production.
- In order to develop oil and gas reserves, it is necessary to drill through thousands of meters of thick rock layers. Downhole tools of varying thickness and diameters are used to perform these drilling operations. These tools are required to withstand high vibration frequency in the process. Vibrations can lead to reduced rate of penetration or premature failure in the tool. In turn, this could lead to an increase in downtime for upstream activities, thus resulting in a rise in operational expenses.
- Currently, changing the rotary speed of the drill or reducing the weight on the drill help in controlling vibrations under varying conditions. These parameters affect the efficiency of the drilling operation. The smart downhole vibration monitoring and control system captures real time date, monitors it, and then controls it by adjusting the damper according to local conditions. Thus, demand for vibration monitoring and control system is anticipated to rise during the forecast period.
Key Drivers and Restraints of Oil and Gas Downhole Vibration Monitoring and Control Market
- Oil and natural gas meet 50% of the world’s energy demand, according to the International Energy Agency. Consumption of natural gas increased by 4.6% in 2018.
- According to the International Energy Agency, petrochemical products are expected to be the pillars of growth of the oil industry during the forecast period. Global oil consumption is projected to reach 104.1 mb/d by 2026, representing an increase of 4.4 mb/d from that in 2019.
Governmental initiatives toward a low carbon future is expected to impact the consumption of oil and natural gas, leading to limited production of oil and natural gas. This would affect the capture of oil and gas reserves through drilling (upstream activities). In turn, this is anticipated to hamper the global oil and gas downhole vibration monitoring and control market.
COVID-19 Impact Analysis on Supply Chain
- Governments of several countries across the globe have imposed stringent lockdowns to limit the spread of the COVID-19 pandemic. Movement of individuals and economic activities related to goods and services have come to a halt because of lockdowns. Supply could not adjust to the drop in consumption. This resulted in considerable buildup of gas in storage. Low prices and unprecedented drop in demand has created difficulties for the upstream sector in regions with unfavorable production economies.
Oil and Gas Downhole Vibration Monitoring and Control Market Segmentation
- The global oil and gas downhole vibration monitoring and control market can be segmented based on location of deployment
- In terms of location of deployment, the global oil and gas downhole vibration monitoring and control market can be bifurcated into on-shore drilling and off-shore drilling. The on-shore drilling segment is anticipated to expand at a faster pace, as on-shore drilling entails lower operating cost as compared to off-shore drilling.
Oil and Gas Downhole Vibration Monitoring and Control Market: Regional Segmentation
- In terms of region, the global oil and gas downhole vibration monitoring and control market can be split into Middle East & Africa, Latin America, Asia Pacific, Europe, and North America
- According to Rystad Energy, well service spending is expected to rise to US$ 54 Bn in 2021 from US$ 50 Bn in 2020 in North America. Thus, oil and gas downhole vibration and control market is projected to expand at a rapid pace in the region.
- According to the Oil and Gas Journal, well intervention in Middle East & Africa is anticipated to rise at a faster pace, with around 10,000 active offshore wells on oil fields with average well age of 16-21 years compared to average well age of 10-15 years in other regions
Key Players Operating in Global Market
- Halliburton Company
- Weatherford International PLC
- Schlumberger Limited
- Nabors Industries Ltd
- Baker Hughes Company
Global Oil and Gas Downhole Vibration Monitoring and Control Market: Research Scope
Global Oil and Gas Downhole Vibration Monitoring and Control Market, by Location of Deployment
- On-shore Drilling
- Off-shore Drilling
Global Oil and Gas Downhole Vibration Monitoring and Control Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
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