Oil and Gas Electric Submersible Pumps Market - Growth, Trends, and Forecast (2020 - 2025)

The Market is Segmented by Location of Deployment (Onshore and Offshore) and Geography (North America (United States, Canada, and Rest of North America), Europe (Russia, Norway, Kazakhstan, and Rest of Europe), Asia-Pacific (China, India, Indonesia, and Rest of Asia-Pacific), South America (Brazil, Argentina, and Rest of South America), and Middle-East and Africa (Saudi Arabia, United Arab Emirates, Nigeria, and Rest of Middle-East and Africa)).

Market Snapshot

Study Period:

2018-2025

Base Year:

2019

Fastest Growing Market:

North America

Largest Market:

North America

CAGR:

6.09 %

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Market Overview

The market for oil and gas electric submersible pumps (ESP) is expected to register a CAGR of 6.09% during the forecast period, 2020-2025. Major factors driving the market studied include the increasing number of mature fields and the adoption of ESPs by oil and gas operators, due to the operational advantages of ESP over other forms of artificial lift. However, ESP run times can be severely compromised in high sand and solid content environments. The performance also degrades while pumping viscous fluids or high gas-to-liquid ratio mixtures. Therefore, the associated failure and downtime risk with ESP is expected to hinder the market growth.

  • The onshore sector accounts for the largest share in the electric submersible pumps market, owing to the increasing number of mature fields in the sector.
  • Developments of potential shale reserves around the world are expected to create significant opportunities for ESPs in the future.
  • North America dominated the market across the world, with the majority of the demand coming from the United States.

Scope of the Report

The scope of the oil and gas electric submersible pumps market report includes:

Location of Deployment
Onshore
Offshore
Geography
North America
United States
Canada
Rest of North America
Europe
Russia
Norway
Kazakhstan
Rest of Europe
Asia-Pacific
China
India
Indonesia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
United Arab Emirates
Nigeria
Rest of Middle-East and Africa

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Key Market Trends

Increasing Demand from Onshore Oil and Gas Sector

  • The onshore oil and gas sector accounts for the largest share in the electric submersible pumps market. In 2018, the average global onshore rig count reached 1987 rigs, representing an increase of 9.7% over the previous year, in turn, boosting the demand for ESPs.
  • In April 2018, the National Hydrocarbons Commission (CNH) of Mexico published the drafts of the bidding terms, license contracts, and joint operating agreement for PEMEX new onshore farmouts, with the purpose of developing exploration and extraction activities in 7 different contractual areas. These onshore farmouts also aim to revive mature assets in the Cardenas-Mora and Ogarrio fields with the help of artificial lift systems.
  • Also, growing focus toward heavy oil reservoirs, coupled with the requirement of ESP systems in shale reservoirs, is expected to drive the business growth.
  • Adding to this, the marginal/stripper wells, which produce less than 10 barrels of oil or 60,000 cubic feet of natural gas per day, require additional technological aid to increase their production. Factors, such as increasing number of marginal and stripper wells and the growing demand to produce oil at the minimum cost, are likely to drive the demand for ESPs in the coming years.
  • Therefore, the increase in the number of wells drilled, along with the demand for low cost production solutions, is expected to augment the demand for ESPs in the onshore sector over the forecast period.

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North America to Dominate the Market

  • In 2019, North America was estimated to be the largest market among the regions studied.
  • The oil and gas industry in the United States is projected to provide a huge impetus to the ESP market, on account of widespread investments lined up in oil and gas projects for the coming years.
  • Around USD 76 billion is expected to be spent on 97 upcoming oil and gas projects in the country between 2018 and 2025. Such robust growth in terms of new projects is projected to create a demand for new ESPs and gas lift systems in the United States, in the long run.
  • In Canada, the sand oil available is of high-density and has high sand particle content, due to which oil transport from the bottom hole of the oil well to the surface requires high pressure. Hence, there is high demand and, in turn, assistance from artificial lift. However, the usage of electric submersible pumps (ESP) for pumping the sand oil is very difficult due to the oil's high viscous nature. This, in turn, is expected to limit the demand for ESP in Canada.
  • On the Mexican side of the Gulf of Mexico (GoM), PEMEX has made several discoveries. PEMEX has issued contracts for the development of these fields. Hence, in the long run, the demand for electric submersible pumps is likely to emanate from this region.

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Competitive Landscape

The oil and gas electric submersible pumps market is partially consolidated. Some of the major companies include Baker Hughes, Schlumberger Limited, Borets International Limited, Novomet, and Halliburton.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2024

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

      2. 4.5.2 Restraints

    6. 4.6 Supply Chain Analysis

    7. 4.7 Porter's Five Forces Analysis

      1. 4.7.1 Bargaining Power of Suppliers

      2. 4.7.2 Bargaining Power of Consumers

      3. 4.7.3 Threat of New Entrants

      4. 4.7.4 Threat of Substitutes Products and Services

      5. 4.7.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Location of Deployment

      1. 5.1.1 Onshore

      2. 5.1.2 Offshore

    2. 5.2 Geography

      1. 5.2.1 North America

        1. 5.2.1.1 United States

        2. 5.2.1.2 Canada

        3. 5.2.1.3 Rest of North America

      2. 5.2.2 Europe

        1. 5.2.2.1 Russia

        2. 5.2.2.2 Norway

        3. 5.2.2.3 Kazakhstan

        4. 5.2.2.4 Rest of Europe

      3. 5.2.3 Asia-Pacific

        1. 5.2.3.1 China

        2. 5.2.3.2 India

        3. 5.2.3.3 Indonesia

        4. 5.2.3.4 Rest of Asia-Pacific

      4. 5.2.4 South America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Argentina

        3. 5.2.4.3 Rest of South America

      5. 5.2.5 Middle-East and Africa

        1. 5.2.5.1 Saudi Arabia

        2. 5.2.5.2 United Arab Emirates

        3. 5.2.5.3 Nigeria

        4. 5.2.5.4 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Baker Hughes Company

      2. 6.4.2 Schlumberger Limited

      3. 6.4.3 Halliburton Company

      4. 6.4.4 Borets International Limited

      5. 6.4.5 ALKHORAYEF PETROLEUM

      6. 6.4.6 DOS Canada Inc.

      7. 6.4.7 Weatherford International

      8. 6.4.8 ESP Ltd

      9. 6.4.9 Extract Production Services LLC

      10. 6.4.10 NOVOMET

  7. *List Not Exhaustive
  8. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

** Subject to Availability

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