Market Trends of Europe Submersible Pump Industry
This section covers the major market trends shaping the Europe Submersible Pump Market according to our research experts:
Oil and Gas Industry to Witness Significant Demand
- In the oil and gas upstream industry, submersible pump are used to move spent drilling mud in and out of the reserve pits, maximizing oil and gas production through the artificial lift, and to treat the produced wastewater.
- The heavy-duty submersible pump handles a lot of solids efficiently and is used during drilling oil and gas well. However, more than 90% of producing well in the world uses an artificial lift to optimize production, after the decline in natural drives.
- The demand for submersible pump has been volatile in the past few years, mainly due to the downturn in the industry. However, the recovery in crude oil prices and the low breakeven price is driving the production activity in the market studied period.
- The oil and gas industry is the largest contributor to Norway's economy. The country's economy has been performing well, despite low oil prices in the past few years. Moreover, Norwegian accommodative monetary policy has been successful in supporting domestic demand.
- In May 2018, Norway announced its plan to hold a new licensing round for its offshore oil and gas fields in already opened areas, further expanding the exploration acreage available to energy firms. In addition, areas in the North Sea, the Norwegian Sea and the Barents Sea would be offered in early 2019.
- Germany is the world's largest importer of natural gas, according to its Federal Institute for Geosciences and Natural Resources. Nearly half the natural gas flowing through pipelines into Germany comes from Russia. Germany relies on Russian exports as its main supply of gas and crude oil.
- The upcoming oil and gas projects in Europe were Wisting Central Oil Discovery (value of USD 5.9 billion), Rosebank & Lochnagar Oil & Gas Fields (values of USD 6 billion), Johan Castberg Field (value of USD 6 billion), etc.
- The oil and gas industry in United Kingdom have witnessed numerous developments, such as production efficiency improvements and new fields startup, leading towards a 16% increase in production since 2014, also unit operation costs are expected to reach as low as USD 14 per barrel in coming years.
- Therefore, based on the factors and projects mentioned above, oil and gas industry is expected to witness significant demand for submersible pump market in Europe over the forecast period.
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Norway to Witness a Significant Growth
- In Norway, the submersible pump market is expected to be driven by growth in industries, such as oil and gas, wastewater treatment, and others.
- Rural population in Norway was reported as 17.75% in 2018, where centralized infrastructure for wastewater treatment is neither cost-effective nor sustainable due to topography and geographical challenges, i.e. long distance to connect a treatment facility.
- The country is committed to expanding the infrastructure required for these rural areas, which is expected to positively impact the demand for submersible pump, in coming years.
- Eight of the biggest offshore oil and gas fields in Europe are in Norway i.e. Troll Oil and Gas Field (5.18 billion barrels of oil equivalent), Johan Sverdrup Oil Field (2.7 billion barrels of oil equivalent), etc. with Equinor Energy serving as operator for six of the fields.
- Developments in upstream oil and gas sector and the announcement of oil licensing rounds are expected to positively impact the country's oil and gas industry, which, in turn, is expected to positively impact the demand for submersible pump in Norway.
- Therefore, in January 2018, the Norwegian Petroleum Directorate (NPD) announced that it expects oil and gas investments to rise in 2018 after falling for the last few years, which, in turn, is expected to result in driving output to near-record highs in the next five years. Further, by 2022, the combined output volume of oil and gas from the country's fields could approach levels last seen in 2004, the highest on record.
- Hence, based on the above-mentioned factors, Norway is likely to witness significant growth for Europe submersible pump market over the forecast period.
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