Market Trends of Latin America Coiled Tubing Industry
This section covers the major market trends shaping the Latin America Coiled Tubing Market according to our research experts:
Well Intervention Segment Expected to Dominate the Market
- Well intervention is the method used for increasing the productivity of the well. Intervention through coil tubing is generally done for various applications such as well cleaning, acidization, perforation, hydro-fracture, sand control, fishing, and others. Well intervention through coil tubing is quite cheaper than other methods such as through drill pipe and tubing.
- The demand for coil tubing is likely to increase due to an increasing number of projects in unconventional oil and gas, in which coil tubing is widely used for hydro-fracturing and acidization to increase the permeability of the formation.
- Major oil and gas companies are now focusing more on increasing the performance and productivity of wells by getting optimum production from the wells. For attaining required production, companies have to majorly rely on coil tubing for well maintenance, fracturing, and acidization. In the offshore environment, usually, coil tubing units are favored as they decrease the rig's non-productive time.
- In Guyana, Exxon Mobil and its partner, Hess Corp., in February 2019, announced 12 discoveries in the massive Stabroek Block. The two companies announced their findings at Tilapia-1 and Haimara-1 in the southeast portion of Stabroek.
- In February 2020, Eni S.p.A an Italian company exploring offshore Mexico announced its discovery at Saasken block in Sureste Basin in the Gulf of Mexico. The block contains 200 to 300 million barrels of oil and can produce up to 10000 barrels per day from preliminary exploration.
- Therefore, owing to the above points, well intervention is likely to dominate the Latin America coiled tubing market during the forecast period.
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Brazil Expected to See Significant Market Growth
- In 2018, Brazil held a significant share in oil and gas production in Latin America. The oil and gas upstream industry directly affects the Latin America coil tubing market as it is the largest sector in which coiled tubing is being widely used. In 2018, Brazil produced 140.3 million tons of oil, contributing approximately 32% of the total oil production in Latin America.
- In 2018, Brazil was the tenth largest producer of oil and gas in the world, the largest producer in South America, and 7th largest oil products consumer in the world.
- Libra oil field in Santos Basin in Brazil is an ultra-deep-water basin, is the largest oil field in Brazil, is under development phase, and is expected to complete in 2021. The development is expected to use several units of coiled tubing for directional drilling, well intervention ad well completion.
- Equinor ASA is in the second phase of the development of its Peregrino Oil field in Brazil offshore. Equinor is expecting to invest USD 3.5 billion on the project, which is expected to start production by the end of 2020. Company in the region has been active in operations such as directional drilling and hydro-fracturing.
- Hence, owing to the above points, Brazil is expected to see significant growth in the Latin America coiled tubing market during the forecast period.
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