Market Trends of North America Liner Hanger System Industry
This section covers the major market trends shaping the North America Liner Hanger Market according to our research experts:
Onshore Sector to Dominate the Market
- A liner hanger system consists of a liner hanger assembly, releasing tool, cementing head, packer, etc. The liner hanger system is a part of good completion and can be mechanical or hydraulic, premium or standard, rotating or non-rotating, conventional or expandable, and pocket slip.
- Canada is estimated to have 1,100 trillion cubic feet of natural gas potential. Hydraulic fracturing, in combination with horizontal drilling techniques, allows better access to the natural gas in such formations. This, in turn, is expected to drive the demand for hydraulic liner hanger systems, over the forecast period
- In Canada, there is a major focus on unconventional resources, such as oil sands, which require greater drilling lengths or 'laterals,' which will increase the demand of liner hangers in the forecast period.
- With total crude oil production of 24.6 million barrels per day, the market of oil and gas is growing and simultaneously driving the need for liner hanger systems.
- Due to the COVID-19 pandemic in 2020, delay in upstream projects is anticipated. Later in the forecast period, with the initiation of new projects and completion of drilled wells, the market of the liner hangers is expected to grow considerably.
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The United States to Dominate the Market
- The United States was one of the largest producers of crude oil and natural gas, accounting for around 18% and 23% of the global production, respectively, in 2019. The production surged in 2019, mainly due to robust drilling in its shale reserves, led by the Permian Basin.
- As of April 2019, 8390 drilled wells are incomplete in the country, with the Permian Basin having the largest share. These wells are expected to be completed in the coming years, creating ample opportunity for the liner hanger system suppliers.
- At the beginning of 2018, the government announced the opening of 98% of the coastal water for oil and gas exploration and production. The announcement is expected to drive the demand for liner hanger systems in the offshore sector in the long run.
- Despite the decrease in the number of active rig count to 990 in 2019, the production of both crude oil and natural gas is increasing, driving the market of the liner hanger system significantly.
- Factors, such as increasing share of horizontal and directional drilling, significant oil and gas discoveries in both onshore and offshore segments, along with the shift toward unconventional fields, are expected to boost the demand for oil fields services, including liner hanger systems.
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