Market Trends of Europe Oil and Gas Electric Submersible Pump Industry
Offshore Segment is Expected to Witness Significant Growth
- Oil and gas-electric submersible pump systems are expected to witness growth in the United Kingdom in 2023 as the high-pressure, high-temperature Culzean gas field in the central North Sea, one of the biggest start-ups, comes online.
- The Bowland Shale in Northern England, the Midland Valley of Scotland, and the Weald Basin in Southern England are expected to create drilling and completion opportunities in the future, driving the market for the oil and gas-electric submersible pump.
- Moreover, the Norwegian parliament opened most of the North Sea, the Norwegian Sea, and the Barents Sea South (including the Southeast) for petroleum activities. Therefore, an increase in exploration and production activities is expected to drive the ESP market during and beyond the forecast period.
- The declining crude oil production to 160.2 million metric tons in Europe due to maturing oilfields is expected to drive the need for ESPs to compensate for the production loss.
- Although most of the reserves in the North Sea area are in decline, with large-scale exploration activities in Russia, the market for oil and gas-electric submersible pumps in the offshore segment is expected to grow significantly.
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Russia to Dominate the Market
- In 2021, Russia held a 20% share of global drilling activities, followed by the United States. With this, Russia is expected to create significant opportunities for the oil and gas-electric submersible pump market in the long run.
- Russian oil and gas condensate production totaled 536.4 million tons in 2021. This marked the highest production level for Russia's post-Soviet era, which saw a consistent rise in crude oil and natural gas production.
- 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 ESPs can be expected in the forecast period.
- The steady increase in oil and gas production has been the main driver of Russia's electric submersible pump (ESP) market in recent years.The introduction of new fields in the Russian Far East, Eastern Siberia, and the Arctic region replaced the production from the traditional fields, which is further expected to create demand for ESPs.
- Demand for the oil and gas-electric submersible pump 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 increasing production.
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