Market Trends of United States Coiled Tubing Industry
This section covers the major market trends shaping the US Coiled Tubing Market according to our research experts:
Well-intervention application segment is expected to dominate the market
- Coiled tubing services are most preferred in well intervention application, which allows in operations such as stimulation, re-perforation, fluid pumping, fishing, sand control, and zonal isolation.
- The increasing capital expenditure on well performance enhancement and well cleaning is expected to drive the well intervention segment.
- Likewise, for depleting reservoirs, the well requires completion or mechanical operation such as fishing, perforation of producing wells, scale removing, setting a plug or packer, and finally increasing the production. Demand for these services is driving the well intervention segment for coiled tubing.
- The demand for well intervention operations in maturing offshore fields in the Gulf of Mexico and other onshore fields in the United States is driving the coiled tubing services market.
- Moreover, the continuous shale gas exploration activities in United States, with presence of major upstream operators are presenting long-term contract opportunity for the coiled tubing services market.
- Therefore, increasing oil and gas exploration and production activities leading to greater well intervention demand are promulgating the coiled tubing services market in United States.
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Increasing exploration and production activity in country to drive the market
- The coiled tubing services in the North American region have dominated the global market and accounted for a considerable market share.
- Although the number of rigs has been showing an increasing trend in the past decade, there has been a slump in rigs after 2020. This slump can be attributed to the global pandemic that hit the world in the 1st quarter of 2020 but has been recovering.
- The productivity index of oil and gas extraction, which indicates the well potential or the ability to produce oil stood at 121 in 2021, while when the global oil and gas extraction industry's production index stood at 100.
- The increasing production and exploration activities, and increasing productivity index of oil and gas extraction, are essential factors in the industry during the forecast period.
- Also, the matured oil and fields of Permian Basin and Bakken Ford require intervention operations to increase the productivity of the wells.
- The United States is considered the ground for new technology. A substantial, significant build-up of coiled tubing units and related companies keeps the rates competitive, making coiled tubing workovers more viable.
- Therefore, with increasing intervention operation activities and production and exploration activities, the coiled tubing services market in the United States is expected to grow in the forecast period.
