Dublin, Nov. 02, 2021 (GLOBE NEWSWIRE) -- The "Expandable Liner Hanger System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The expandable liner hanger system market is expected to register a CAGR of greater than 10.2% during the forecast period. In 2020, the oil and gas industry got struck with the COVID-19 impact, far more significant than any other shocks that the sector came across in the past.
The oil prices started declining at the end of Q1 2020, and the prices were slashed entirely by the end of April 2020. The OPEC basket benchmarks crude oil prices, which at the starting of 2020 were USD 68.89/barrel and came down to USD 12.41/barrel by the end of April 2020, due to the COVID-19 pandemic.
Factors such as the rising unconventional and deep-water exploration and production activities, increasing need for higher productivity and efficiency, and the advantage of covering vast areas by a single rig employing long lateral drilling methods are expected to drive the demand for expandable liner hanger systems market during the forecast period. However, the challenges associated with the availability of raw materials and the high volatility of crude oil prices are likely to restrain the market studied.
With the revival of oil and gas prices and kick start of various offshore projects, the offshore segment is likely to register a higher growth rate, as compared to onshore. Moreover, a greater degree of complexity in offshore oil and gas reserve formations is expected to push the companies to innovate and develop offshore specific expandable liner hanger systems.
The development of deepwater and ultra-deepwater reserves in major regions like North America, Asia-Pacific, etc. is expected to create ample opportunities in the future.
Asia-Pacific is expected to be the fastest growing market during the forecast period, with majority of the demand coming from countries like China, India, Australia, etc.
Key Market Trends
Offshore Sector is Expected to Witness Significant Growth
The offshore oil and gas industry accounts for about 30% of the global crude oil production. The Middle-East, North Sea, Brazil, and the Gulf of Mexico and the Caspian Sea are the major offshore oil and gas producing regions. In addition, the availability of abundant resources, coupled with increased potential to recover oil and gas from deepwater and ultra-deepwater areas, is expected to provide a great opportunity for the offshore expandable liner hanger systems (ELHS) market.?
Deepwater oil production is majorly concentrated in four countries namely Angola, Brazil, Nigeria, and the United States. During the past years, deepwater investments have retained a significant share, reflecting opportunities in the Gulf of Mexico and offshore Latin America (Brazil and Guyana).?
The expandable liner hanger system is preferred for deepwater well completion and is designed for applications where long and heavy liners must be deployed in challenging environments, including deepwater, extended reach, and HP/HT (high pressure/high temperature) wells.
Additionally, in 2020, Nigerian National Petroleum Corporation (NNPC) got approval from government to invest more than 26 billion in upstream offshore exploration and production activities by 2025. As a result, the demand for expandable liner hangers in deepwater and ultra-deepwater depths is expected to increase during the forecast period.
Therefore, based on the above-mentioned factors, offshore sector is expected to witness significant demand in expandable liner hanger systems during the forecast period.
Asia-Pacific is Expected to be the Fastest Growing Market
The Asia-Pacific region is expected to witness the fastest growth during the forecast period, with China being the largest market for expandable liner hanger system. China is the largest importer of oil and gas across the world. The primary energy consumption in China is dominated by coal, which accounted for more than 58% of total energy consumption, in 2019. However, owing to the air pollution and environmental concerns, the country is employing policies to increase the share of oil and gas and reduce the percentage of coal in the total energy mix.
Also, in 2019, as a result of President Xi Jinping's call (in August 2017) to expedite the domestic exploration and production activities (particularly for natural gas) and to improve national security, multiple companies, particularly CNOOC, CNPC, and Sinopec, were likely to increase their capital expenditure in exploration, development, and production activities. This will mean a significant boost to businesses for expandable liner hanger systems, in the coming years.
Additionally, the Chinese government is also undertaking significant favorable reforms to boost international participation in the oil and gas sector. As a critical part of the country's 13th five-year plan, the opening up of more acreage to independent participants is expected to diversify investments and increase drilling and completion activities, which, in turn, driving the expandable liner hanger systems market in the country.
Furthermore, in India, large new field developments in deepwater are expected to be the key drivers for growth of liner hanger system market. Moreover, the companies in India are moving forward to develop the discovered deepwater gas fields in an integrated series of projects, and are expecting to produce 1 bcf/d, phased over 2020-22. Similar interests are being undertaken in other offshore fields as well, which are expected to result in the country, thus, witnessing greater demand for the expandable form of liner hangers in the long run.
Therefore, based on the above-mentioned factors, Asia-Pacific is expected to be the fastest growing region in the expandable liner hanger system market during the forecast period.
Key Topics Covered:
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY
4 MARKET OVERVIEW
4.2 Market Size and Demand Forecast in USD billion, till 2026
4.3 Onshore and Offshore Active Rig Count, till August 2021
4.4 Onshore and Offshore Capital Expenditure (CAPEX) Forecast in USD billion, till 2026
4.5 Recent Trends and Developments
4.6 Market Dynamics
4.7 Supply Chain Analysis
4.8 Porter's Five Forces Analysis
4.9 Assessment of COVID-19 Impact on the Industry
5 MARKET SEGMENTATION
5.1 Location of Deployment
5.2.1 North America
5.2.4 South America
5.2.5 Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Halliburton Company
6.3.2 Schlumberger Limited
6.3.3 Dril-Quip, Inc.
6.3.4 Weatherford International PLC
6.3.5 Baker Hughes Company
6.3.6 Enventure Global Technology LLC
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/9kq5b2
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