Market Trends of Subsea Pump System Industry
This section covers the major market trends shaping the Subsea Pump System Market according to our research experts:
Deepwater Sector to Dominate the Market
- The oil and gas industry is engaged in a rising movement to identify new techniques and technologies that can help them to maximize revenues from the existing brownfields and new assets by enhancing their outputs.
- With the rising number of maturing onshore oilfields in recent years, there has been growing in offshore exploration and production (E&P) activities. For instance, in the Permian Basin, currently the most important basin in terms of crude oil production, the production from old wells has started to decline, and there is little scope for discovery in these areas. As a result, the oil and gas industry is shifting toward deeper regions in search of oil and gas, to meet the increasing demand.
- In November 2022, The Well Gura-1, the first exploratory well in a deep-sea offshore exploration block in the Santos Basin, Brazil, was successfully tested by China National Petroleum Corporation (CNPC) and Petrobras, marking the most recent success in China-Brazil energy cooperation. The significant oil yield from Well Gura-1 for CNPC's offshore deep-water oil and gas exploration paves the way for the business to expand it's worldwide offshore deep-sea oil and gas exploration and development.
- In recent years, increasing offshore activity is attracting investors. Particularly in the production of viscous oil, the employment of pumping techniques in offshore applications has grown widespread. This results from the fact that they outperform other lift techniques, like gas lift, in terms of efficiency and production rate when applied in the same circumstances. In 2021, global oil production accounted for 89877 Thousand barrels daily with an annual growth rate of 1.6%. with an increase in oil production use of pumps is expected to increase, which, in turn, will create market demand for the deepwater oil production segment.
- Therefore with increasing offshore exploration investment and oil production from newly developed fields, the deepwater sector is expected to dominate the market in the forecast period.
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South America to Dominate the Market Growth
- The South American region has witnessed significant growth in the development of offshore reserves in recent years in countries like Brazil and Guyana, due to which the region is expected to dominate the market during the forecast period.
- In January 2022, Argentina's government has taken action to promote deep-water exploration. A 3D seismic project that operator Equinor and partners had planned to carry out in the Argentina Basin's blocks CAN-100, CAN-108, and CAN-114 in ocean depths between 1,500 m and 3,500 m, roughly 290 km from the city of Mar del Plata, has been unfrozen by the government.
- In January 2022, The first oil is anticipated to be produced in the second stage of Guyana's Liza field development on the Stabroek block, joining the 120,000 b/d previously produced in the first stage. The third and fourth phases, named Payara and Yellowtail and each rated for 220,000 b/d, are progressing. With the first oil scheduled for 2024 and 2026, respectively, a final investment decision has been reached to move forward with Payara, while permitting for Yellowtail is in the process.
- According to EIA, Brazil is a world leader in the development of deepwater and ultra-deepwater projects. The change in government policy in recent years such as liberalization in the oil & gas sector attracted foreign investment in the country. Moreover, the presence of the most experienced international oil companies in deepwater development and the largest deepwater reserves makes Brazil the most attractive country for upstream deepwater investment.
- Moreover, in November 2022, The first oil exploration test of a deepwater field in Brazil's Santos basin was performed by China National Petroleum Corp (CNPC) and state-owned Brazilian producer Petrobras. Over 350,000 square kilometers make up the Santos basin, the largest offshore sedimentary basin in Brazil.
- The latest investment and upcoming projects in deepwater are likely to drive the growth of the subsea pump system market during the forecast period in the South American region.
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