Market Trends of North America Artificial Lift Systems Industry
This section covers the major market trends shaping the North America Artificial Lift Systems Market according to our research experts:
Offshore Application Segment to Witness Significant Demand
The offshore oil and gas segment is expected to record the fastest growth rate during the forecast period. Artificial lift methods such as hydraulic pumping, gas lift, electric submersible pumps (ESPs), and progressive cavity pumps (PCPs) are predominantly used in offshore oil wells.
Companies have been exploring offshore locations for oil and gas production owing to the offshore segment having huge untapped reserves. Thus, the offshore segment is a more capital-intensive segment compared to onshore.
According to the International Energy Agency (IEA), between 2019 and 2040, around 2,500-3,000 offshore projects are expected to undergo decommissioning as they have attained their operational lives. The Gulf of Mexico and the North Sea have the highest number of maturing shallow fields in the region.
Thus, offshore oil fields have created demand opportunities for artificial lift methods in the Gulf of Mexico and the North Sea regions of North America.
United States to Dominate the Market
As of 2020, the United States accounted for more than 40% of artificial lift systems deployed across the world.
New projects and expansions in the Gulf of Mexico basin have contributed to the growth of oil production. Texas (TX), Gulf of Mexico (GOM), New Mexico (NM), and North Dakota (ND) produced 4897, 1656,1036,1178 thousand barrels per day of crude oil, respectively, in 2020, which is anticipated to boost the growth of the market in the United States.
This can be attributed to the growth in demand for artificial lift operations in mature and aging oil wells. Furthermore, the leading shift from conventional sources to unconventional and redevelopment of shale gas reserves in the country is attributed to the artificial lift system market's growth.
Therefore, maturing oil fields and redevelopment of shale gas reserves are making the United States the biggest market for artificial lift systems in North America.
