Christmas Tree Market
The demand for Christmas tree, which is used to control production or injection of fluid, is dependent on drilling activity, which had been negatively impacted in the past, due to the downturn in the oil & gas industry. As the crude oil price started to recover after mid-2016, the demand for the Christmas tree started to increase gradually. However, the impact of the recovery in crude oil price has not been universal, with the latest indication suggesting that the higher prices have resulted in a surge in the onshore sector and comparatively less activity in the offshore sector, which is expected to pick up after 2019.
Lower Expenses across the Operation is driving the Christmas Tree Market
In response to the downturn in crude oil price in the past few years, the oil & gas companies not only reduced their activity level but also implemented sweeping efficiency programs to lower the operating cost. Operating cost in Norway has reduced by 30%, between 2014 and 2017. Drilling an exploratory well in Norway’s offshore was half the cost in 2017, as compared to 2014. The unit operating costs in the UK Continental Shelf has reduced by around 50% in the past two to three years. The production is expected to ramp up in Norway after the Johan Sverdrup field, one of the major fields, starts production in 2020. The lower operating cost, coupled with rising crude oil price is expected to make several marginal projects economically viable and drive the market, during the forecast period.
North America Holds the Largest Share in Christmas Tree Market
North America, led by the United States, has been benefitted the most, as compared to other regions, with the increase in crude oil prices. The active rig count in the United States has increased by around 59%, between the beginning of 2017 and May 2018. The country further plans to become a net exporter of crude oil by 2022. Countries in other regions, such as Abu Dhabi, Iraq, Kuwait, Nigeria, Argentina, Brazil, and India has also witnessed steady growth in drilling activity. The robust drilling activity in North America and steady growth in other countries are expected to increase the demand for Christmas tree in the market.
Recovery in Brazilian Offshore Industry
Brazilian offshore oil & gas industry has been on a setback, due to the lack of investment in the past few years. The new conservative government in the country has introduced several reforms, such as ending Petrobras’ monopoly over the country’s prolific hydrocarbon resources and has opened the hydrocarbon reserves to foreign companies. Around 14 deep water projects are expected to be introduced, by 2020, in the country. The country is aiming for additional oil production capacity of around 2 MMb/d by 2027, mostly from deep water. As a result, Brazil is expected to create significant demand for Christmas tree in the offshore sector of the country.
Christmas Tree Market Key Developments
- July 2018: TechnipFMC has received contract by Total E&P Angola for the Zinia Phase 2 field development, located offshore Angola at a water depth of 800 and 1,000 meters. The contract covers EPC of subsea equipment including 9 subsea tree units as well as well heads subsea control systems, connection systems and associated equipment.
Christmas Tree Market Major Players include -
- Yantai Jereh Petroleum Equipment & Technologies Co. Ltd.
- Worldwide Oilfield Machine.
- TechnipFMC PLC.
- General Electric.
- Schlumberger Limited.
- Singapore WEFIC Ocean Technologies Pte. Ltd.
- Aker Solutions.
- Dril-Quip Inc.
- ITAG QATAR.
- Shengji Group Ltd.
Reasons to Purchase Christmas Tree Market Report
- Current and future Christmas tree market outlook in the developed and emerging markets
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- The segment that is expected to dominate the market
- Regions that are expected to witness fastest growth during the forecast period
- Identify the latest developments and strategies employed by the major market players.
- 3-month analyst support along with the Market Estimate sheet (in Excel).
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1. Executive Summary
2. Research Methodology
2.1 Scope of Study
2.2 Market Definition
2.3 Study Assumptions
2.4 Study Deliverables
2.5 Research Phases
3. MARKET OVERVIEW
3.2 Market Size and Demand Forecast until 2023
3.3 Global Onshore & Offshore Active Rig Count of Major Countries
3.4 Onshore & Offshore CAPEX Forecast in USD billion, until 2023
3.5 Offshore CAPEX Forecast in USD billion by Region, until 2023
3.6 Brent Crude Oil & Henry Hub Spot Prices Forecast, until 2023
3.7 Historic and Production Forecast of deepwater, oil sands and crude from deepwater in kb/d
3.8 Key Upstream Projects for Investment Purposes
3.9 Recent Trends and Developments
4. Market Dynamics
4.1 Christmas Tree Market Drivers
4.2 Christmas Tree Market Restraints
4.3 Christmas Tree Market Opportunities
5. Christmas Tree Market Supply Chain Analysis
6. Industry Attractiveness - Porter's Five Force Analysis
6.1 Bargaining Power of Suppliers
6.2 Bargaining Power of Consumers
6.3 Threat of New Entrants
6.4 Threat of Substitute Product and Services
6.5 Intensity of Competitive Rivalry
7. Christmas Tree Market Market Segmentation and Analysis (Overview, Market Size and Demand Forecast until 2023)
7.1 Christmas Tree Market By Types
7.1.1 Horizontal Tree
7.1.2 Vertical Tree
7.2 Christmas Tree Market By Location of Deployment
8. Christmas Tree Market Regional Market Analysis (Overview, Market Size and Demand Forecast until 2023)
8.1 North America Christmas Tree Market (2018-2023)
8.1.1 United States Christmas Tree Market (2018-2023)
8.1.2 Canada Christmas Tree Market (2018-2023)
8.1.3 Rest of North America
8.2 Europe Christmas Tree Market (2018-2023)
8.2.1 United Kingdom Christmas Tree Market (2018-2023)
8.2.2 Norway Christmas Tree Market (2018-2023)
8.2.3 Russia Christmas Tree Market (2018-2023)
8.2.4 Rest of Europe
8.3 South America Christmas Tree Market (2018-2023)
8.3.1 Brazil Christmas Tree Market (2018-2023)
8.3.2 Argentina Christmas Tree Market (2018-2023)
8.3.3 Colombia Christmas Tree Market (2018-2023)
8.3.4 Rest of South America
8.4 Asia-Pacific Christmas Tree Market (2018-2023)
8.4.1 China Christmas Tree Market (2018-2023)
8.4.2 India Christmas Tree Market (2018-2023)
8.4.3 Indonesia Christmas Tree Market (2018-2023)
8.4.4 Rest of Asia-Pacific
8.5 Middle-East and Africa Christmas Tree Market (2018-2023)
8.4.1 Saudi Arabia Christmas Tree Market (2018-2023)
8.4.2 United Arab Emirates Christmas Tree Market (2018-2023)
8.4.3 Iran Christmas Tree Market (2018-2023)
8.4.4 Nigeria Christmas Tree Market (2018-2023)
8.4.5 Rest of Middle East and Africa
9. Christmas Tree Market Key Company Analysis (Overview, Products & Services, Financials**, Recent Developments, and Analyst View)
9.1 Yantai Jereh Petroleum Equipment & Technologies Co., Ltd.
9.2 Worldwide Oilfield Machine
9.3 TechnipFMC plc
9.4 Baker Hughes a GE Company
9.5 Schlumberger Limited
9.6 Aker Solutions
9.7 Dril-Quip, Inc.
9.8 Shengji Group
9.9 INTERA Ltd.
*List not Exhaustive
10. Competitive Landscape
10.1 Mergers and Acquisitions, Joint Ventures Collaborations and Agreements
10.2 Strategies Adopted by Key Players
**Subject to availability on public domain