North America Pressure Pumping Market Size
|Study Period||2019 - 2028|
|Base Year For Estimation||2022|
|Forecast Data Period||2023 - 2028|
|Historical Data Period||2018 - 2021|
|CAGR||> 7.00 %|
*Disclaimer: Major Players sorted in no particular order
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North America Pressure Pumping Market Analysis
The North American pressure pumping market is expected to register a CAGR of around 7% during the forecast period, 2022-2027. The COVID-19 pandemic had a severe impact on the pressure pumping market of the region, which was reflected in the delays and halts in the upstream projects due to the lockdowns. This negatively affected the prices of the commodities in the region. As an example, in the United States, the price of WTI (West Texas Intermediate) crude reached the lowest level of USD 14 per barrel from USD 63 at the beginning of the year. Factors such as high active rig count and the highly prevalent practice of hydraulic fracturing in the region are responsible for the growth of the pressure pumping market. However, market growth can be hindered in the coming years due to volatile crude oil prices and the environmental impacts of hydraulic fracturing.
- The hydraulic fracturing segment is expected to dominate the market during the forecast period due to the abundant presence of horizontally drilled wells in the region.
- The newly introduced waterless fracking process, which uses foam-based chemicals or fluids instead of water, creates ample opportunities for the pressure-pumping market. It presents an alternative to water usage in pressure pumping and thus removes the complications associated with the infrastructure required for water supply services.
- The United States is expected to dominate the market during the forecast period due to the high share of unconventional oil and gas resources in the various basins present in the country.
North America Pressure Pumping Market Trends
This section covers the major market trends shaping the North America Pressure Pumping Market according to our research experts:
Hydraulic Fracturing Expected to Dominate the Market
- Hydraulic fracturing, often called fracking, is a technique to increase the rate of petroleum extraction by injecting a fracking fluid or chemical at very high pressure into the well constructed. The process is generally carried out in the case of unconventional petroleum resources, as it has tight and difficult rock formations.
- The process is currently the most widely used technique, particularly after the U.S shale gas boom, where hydraulic fracturing is the most significant part of petroleum production from such tight unconventional rock formations. The shale gas production in the United States stood at around 26,139 billion cubic feet in 2020, an uptrend of around 70% in the last five years.
- In 2020, the oil and gas operators in the Louisiana state added new natural gas reserves in the Haynesville shale play. They discovered around 0.8 tcf of natural gas reserves in the region. The shale play was consistently getting depleted with the existing oil and gas fields. Thus, further exploration was mandatory.
- Furthermore, in 2020, the upstream companies in New Mexico added more proved reserves, with a capacity of 1.8 tcf, from the development in the Bone Spring/Wolfcamp shale play in the Delaware Basin in the eastern subdivision of the state. During the forecast period, the upcoming production in the reserves is expected to have an overwhelming direct impact on the market.
- Such developments are expected to render tremendous growth to the pressure-pumping market in the near future.
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The United States is Expected to Dominate the Market
- The crude oil and LNG demand has perpetually witnessed an upsurge in the United States over the recent years. Thus, the upstream oil and gas operations in the country got a big boost in the last 10 years. Moreover, the country has abundant unconventional resources that highly require pressure pumping services for the extraction of petroleum resources.
- The various shale plays in the country like Eagle Ford, Spraberry, Bakken, Wolfcamp, Woodford, etc., contributed significantly to the tight oil production in 2020. The Permian basin accounted for the largest share in the total production from tight oil plays, which was around 1322 million barrels (around 59%) in 2020, followed by the Williston basin.
- Furthermore, the US government also substantially invested in the petroleum industry. It offered around USD 20 billion annually to the value of new oil and gas projects in the last two decades, which increased the companies' expected profits, particularly in the case of shale resources exploitation in the Bakken Formation, Haynesville Shale and Appalachian, Eagle Ford, and Permian Basins. Such initiatives by the government are expected to attract more investments from private companies in the oil and gas production portfolio.
- Moreover, the current projects planned with the practice of enhanced oil recovery have a direct boosting influence on the pressure-pumping market. For instance, the Offshore Mad Dog Phase 2 project, located in 4,500 feet of water about 190 miles south of New Orleans, Gulf of Mexico, includes the installation of a new semi-submersible floating production platform to inject up to 140,000 barrels of water per day using a LoSal system for the enhanced oil recovery. The expected commencement of the production is in 2022, with British Petroleum as the operator.
- Such developments are expected to drive the market in the country to the greatest extent in the coming years.
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North America Pressure Pumping Industry Overview
The North American pressure-pumping market is fragmented. Some of the key players in this market include Baker Hughes Co., Halliburton Company, Schlumberger NV, Weatherford International PLC, and Superior Energy Services Inc.
North America Pressure Pumping Market Leaders
Baker Hughes Co
Weatherford International Plc.
Superior Energy Services Inc.
*Disclaimer: Major Players sorted in no particular order
North America Pressure Pumping Market News
- In 2020, the United States achieved the most significant extensions and discoveries of proved crude oil reserves and lease condensates, which were discovered in Texas, New Mexico, and North Dakota. The operators in Texas added around 1.8 billion barrels, New Mexico had 0.7 billion barrels, and North Dakota had 0.2 billion barrels of extensions and discoveries. The discoveries are likely to give more development and production opportunities to the E&P companies, and hence the pressure pumping services too.
- The gas operators in Alaska added a substantial volume of proved natural gas reserves in 2020. The annual total of proved natural gas reserves in Alaska increased by 27 tcf in 2020, quadrupling the state's total from 9 tcf to 36 tcf.
North America Pressure Pumping Market Report - Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Service Type
5.1.1 Hydraulic Fracturing
5.1.3 Enhanced Oil Recovery
5.2 Well Type
5.3.1 North America
5.3.4 South America
5.3.5 Middle East & 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 Baker Hughes Co
6.3.2 Halliburton Company
6.3.3 Schlumberger NV
6.3.4 Weatherford International PLC
6.3.5 Superior Energy Services Inc.
6.3.6 Saipem SpA
6.3.7 Chevron Corporation
6.3.8 Trican Well Service Ltd
6.3.9 Calfrac Well Services Ltd
6.3.10 Shell PLC
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
North America Pressure Pumping Market Research FAQs
What is the current North America Pressure Pumping Market size?
The North America Pressure Pumping Market is projected to register a CAGR of greater than 7% during the forecast period (2023-2028).
Who are the key players in North America Pressure Pumping Market?
Baker Hughes Co, Halliburton Company, Schlumberger NV, Weatherford International Plc. and Superior Energy Services Inc. are the major companies operating in the North America Pressure Pumping Market.
North America Pressure Pumping Industry Report
Statistics for the 2023 North America Pressure Pumping market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Pressure Pumping analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.