Market Trends of Europe Liner Hanger System Industry
This section covers the major market trends shaping the Europe Liner Hanger Market according to our research experts:
Offshore Market is Expected to Witness the highest growth
- A Liner Hanger System consists of a liner hanger assembly, releasing tool, cementing head, packer, etc. The liner hanger system is a part of well completion and can be mechanical or hydraulic, premium or standard, rotating or non-rotating, conventional or expandable, and pocket slip.
- Liner Hanger System witnessed growth in 2021 as the high-pressure, high-temperature Culzean gas field in the central North Sea, one of the biggest start-ups comes on stream. Estimates suggest that the amount of shale gas lies between 2.8 and 39.9 trillion cubic meters (TCM). However, public opposition due to the environmental risk associated with fracking has become one of the biggest hurdles in shale gas development in the United Kingdom. This eventually restrains the possible growth of the liner hanger system.
- Due to the declining crude oil production to 3,420 thousand barrels per day in 2021 in European Union, the growth of the liner hanger system is less in comparison to other global regions.
- Although most of the reserves in the North Sea area are in the declining phase, with large-scale exploration activities in Russia, the market of liner hanger in the offshore segment is expected to grow significantly.
- In February 2022, six new oil and gas fields in the North Sea almost confirmed approval from the UK government. The finance department pushed the senior authorities to fast-track the licenses for constructing the six energy areas. This, in turn, culminates in the growth of the liner hanger system across the region.
- Moreover, In January 2022, the Norwegian Ministry of Petroleum and Energy offered 28 companies ownership interests in 53 offshore oil and gas production licenses on the Norwegian Shelf in the Awards in Predefined Areas(APA) 2021. This will usher in new growth in the oilfield services markets when the reservoir development starts.
- Owing to the above points, the offshore segment is expected to dominate the market during the forecast period.
Understand The Key Trends Shaping This Market
Download PDF
Russia to Dominate the Market
- Russia has significant shale oil and the biggest potential in shale gas reserves. Bazhenov Shale is known to be the biggest shale reserve in the world. As cheaper sites are abundant, shale gas development in Bazhenov is expected to start in 2024. In 2021, Russia held a major share of global drilling activities, followed by the United States. With this, Russia is also leading in the European region in terms of the liner hanger system market.
- As of 2021, Russia is the world's second-largest producer of natural gas, behind the United States. It also has the world's largest gas reserves and is the world's largest gas exporter. In 2021, the country produced 762 bcm of natural gas and exported approximately 210 bcm via pipeline.
- Horizontal drilling is growing at a significant pace in the country. Nearly 839 thousand meters were drilled by mineral exploration companies in Russia in 2021. The number of meters drilled per year has decreased since 2019 when it peaked at over 1.1 million meters.
- Gazprom Neft continues to conduct studies on its Bazhenov acreage and is targeting 40,000 b/d of production from shale by 2023. With this significant demand for the liner, hangers can be expected in the forecast period.
- Demand for the liner hanger system in Russia is expected to continue to increase, in line with the drilling volume, driven by the considerable increase in the number of rigs and a higher proportion of rigs being used for horizontal drilling.
Get Analysis on Important Geographic Markets
Download PDF
