Market Trends of Asia-Pacific Liner Hanger System Industry
This section covers the major market trends shaping the APAC Liner Hanger System Market according to our research experts:
Offshore Sector to Witness Significant Growth
- In Australia, the Browse gas project is expected to be developed in the forecast period. With an estimated capacity of 15.4 trillion cubic feet of dry gas, multiple wells in the future are likely to drive the demand of liner hanger systems offshore.
- Vedanta's upstream subsidiary and Cairn Oil and Gas are planning to invest INR 58,521 crore across to conclude exploration work across 30 blocks in India, With new exploration activities, demand for liner hanger systems is anticipated to rise during the forecast period.
- Further, in India, large new field developments in deepwater are expected to be the key drivers for growth in the Indian liner hanger system market. In April 2018, BP and Reliance Industries sanctioned the 2nd phase development of the 'Satellite cluster' project, located in the Bay of Bengal.
- The increase in global crude oil production to 94.7 million barrels per day has resulted due to the drilling of new wells, which are increasing the demand for casing hardware significantly.
- In 2019, Asia-Pacific produced 65 bcf natural gas per day. With growing investments in offshore gas projects in India, China, Indonesia, and Australia, the new production wells are expected, which are likely to create significant demand for liner hanger systems,
- Due to the COVID-19 pandemic in 2020, delay in upstream projects can be expected. Later in the forecast period, with the initiation of new offshore projects, the market of the liner hanger system is expected to grow considerably.
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China to Dominate the Market
- The new reforms related to the oil and gas industry are expected to make it easier for private companies to invest in the country, which, in turn, is expected to help reduce the monopoly of state-owned companies. The growing investment by the private sector is expected to drive the liner hanger system market.
- In January 2018, CNOOC announced its plan to double its exploration activities and proven oil and gas reserves in China over the next seven years. This is expected to boost the demand for the liner hanger systems.
- The shale formations in the country tend to be relatively deep. Also, Chinese shale gas production is expected to mark progress with around 700 planned new wells were coming on-stream in 2018-2020.
- With 3.8 million barrels per day production of crude oil in 2019, new wells are expected to increase production further and drive the market of the liner hanger system in China.
- Factors, such as increasing lateral lengths, growth in the shale gas industry, and country's reforms to boost international participation in the oil and gas sector, are expected to boost the demand for liner hanger systems over the forecast period
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