Market Trends of North America Submersible Pumps Industry
This section covers the major market trends shaping the North America Submersible Pump market according to our research experts:
Oil and Gas Industry to Dominate the Market
- In the oil and gas upstream industry, submersible pumps 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 natural gas production have been increased from 961.6 bcm in 2017 to 1053.9 bcm in 2018.
- The heavy-duty submersible pump handles a lot of solids efficiently and is used during drilling oil and gas well. As of 2019, more than 90% of producing wells in the world uses an artificial lift to optimize production, after the decline in natural drives.
- The demand for submersible pumps 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 prices is expected to drive the production activity during the forecast period.
- The oil and gas production market is expected to be driven by the United States, due to the presence of more than a million production wells in the country. It is also considered as one of the largest markets for artificial lift systems.
- The increasing exploitation of shale reserves has resulted in increased production of wastewater. The lack of availability of water and government regulation on wastewater treatment are encouraging the industry to treat the produced water. This is expected to create tremendous demand opportunities for submersible pumps that finds application in pumping wastewater from the field.
- Canada has the world's third-largest crude oil reserves, after Venezuela and Saudi Arabia, 98% of which are comprised of oil sands reserves. The submersible progressive cavity pumps (PCP) are considered the best suited type of artificial lift to pump oil with high sand content, and hence, is widely used in the upstream oil and gas industry.
- Mexico's crude oil and natural gas production has been declining since 2008. To address the decline, the government introduced energy reforms ending the 75-year monopoly of PEMEX, a state-owned oil and gas company, in order to attract foreign investment.
- Therefore, on account of widespread investments in oil and gas projects, the oil and gas industry are expected to dominate the submersible pumps market in North America region.
Understand The Key Trends Shaping This Market
Download Sample
The United States to Dominate the Market
- The submersible pump market in the United States is expected to be driven bythe growing oil and gas sector, water and wastewater sector, mining,agriculture, andothers.
- Wastewater treatment facilities in the United States process approximately 34billion gallons of wastewater every day. Further, in February 2018, the EPAawarded USD 172.3 million to California state for infrastructure developmentpertaining to safe drinking water and wastewater treatment. Apart from that,USD 1.2 million was granted tothe city of Vallejo for sewer upgrades. Thegrowth of water and wastewater treatment infrastructure is expected to benefitthe submersible pump market during the forecastperiod.
- Another industry that is positively influencing the demand increase forsubmersible pumps is the mining industry. The country's metal mine productionin 2018 was estimated at USD 25.9 billion, which was 4% less than 2017. Also, iron ore mine production was 49.5 million metric tons in 2018.
- The oil and gas industry in the United States is providing a huge impetus to thesubmersible pump market on account of widespread investments in oil and gasprojects in the coming years. It is expected that around USD 76 billion will bespent on 97 upcoming oil and gas projects in the country, between 2018 and2025, thus, creating widespread opportunities for the submersible pumpbusiness.
- Further,the crude oil price in 2018 is well above USD 60 per barrel andoperators with a new standard for operational efficiency, coupled withadministrative support, are expected to result in increased activity level in thedeepwater and ultra-deepwater in the Gulf of Mexico, which is a positivemarket indicator for the submersible pump market during the forecast period.
Get Analysis on Important Geographic Markets
Download Sample
