Market Trends of Oil and Gas Packer Industry
This section covers the major market trends shaping the Oil & Gas Electric Packer Market according to our research experts:
Retrievable Packer to Witness Significant Growth
- A retrievable packer is a type of packer that is run and retrieved on a running string or production string, unlike a permanent production packer that is set in the casing or liner before the production string is run.
- 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 retrievable packers.
- Africa's offshore deep and ultra-deep space has continued to attract oil explorers and producers in increasing their operations, especially in Southern and Western Africa. Significant projects have either started or have been approved, in turn, creating opportunities for the packer market.
- In Russia, 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 packers can be expected in the forecast period.
- With total gas production of 3,989 bcm, the market of oil and gas is growing and simultaneously driving the need for a retrievable packers.
- Due to the COVID-19 outbreak, delay in upstream projects is expected. However, later in the forecast period, with the initiation of new projects and completion of drilled wells, the market of the packers is expected to grow considerably
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North America to Dominate the Market
- The United States is 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.
- It is expected that around USD 76 billion will be spent on 97 upcoming oil and gas projects in the country between 2018 and 2025 in the United States. Such robust growth in terms of new projects is projected to create a demand for completion and well intervention projects.
- 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 packer system in the future.
- With increased crude oil production to more than 24 million barrels per day, the North American region is expected to create sufficient demand and dominate the market.
- With increasing investment in Canada and the United States and the availability of vast reserves of shale gas and sand reserves, the region is leading the market of packers.
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