North America is one of the largest markets for well intervention, due to the rigorous drilling and production activity. The region accounts for around 21% and 26% of the global crude oil & natural gas production respectively. The average breakeven price of US shale has declined by around 40% since 2013, due to technological improvement. In the United States, technological advances in hydraulic fracturing have helped the operators increase shale production. Canada has also started hydraulic fracturing to increase production from its fields. Drilling activity in 2018 is at a two year peak, with the addition of 10% active rig count in the first 75 days of the year, Canada is the leader in the growth rate. Drilling activity in Mexico has still not picked up and is at its lowest in the past 22 to 23 years, and hence, lower demand for well intervention is expected in the country.
Demand for offshore plug and abandonment in the Gulf of Mexico (GoM) is primarily driven by the increase in matured fields, ageing offshore platform infrastructure, damage to platforms and pipelines from hurricanes and other windstorms, among other factors. In 2016, twenty-one deepwater structures were decommissioned. Since 2009, usually one or two deepwater structures are being decommissioned per year. Outer Continental Shelf (OCS) of the United States had more than 2,185 platforms. Around 30% of the platforms are non-producing or “idle iron”, providing ample opportunity for plug and abandonment. Plug and abandonment is a type of well intervention that is expected to drive the market.
As of February 2018, the United States has 968 active rigs and more than a million producing wells, including shale, and is one of the largest markets for well intervention in the world. In 2018, drilling activity in the United States is expected to be positive, with the addition of 51 active rig count in the first 40 days of the year. Permian is the largest hotspot for upstream activities in the country, and other regions are also growing significantly. Also, the government has opened around 98% its coastal water for drilling, which was earlier not allowed. As a result, the drilling activity is expected to further increase in the country. With the increase in drilling activity, demand for well intervention market is poised to grow.
Major Players: Schlumberger Limited, Weatherford International PLC, Baker Hughes A GE Co., Halliburton Company, National Oilwell Varco, Superior Energy Services Inc., Expro Group, Archer, Aker Solutions, ALTUS Intervention, among others.
Looking to Customize Report?