After two years of downturn in upstream oil & gas activity across the globe, perforating gun market is expected to witness a slightly higher growth rate between 2018 and 2023, owing to the resurgence of oil & gas industry. In May 2018, the Brent Crude and WTI Crude prices reached USD 77.21 per bbl and USD 71.14 per bbl respectively. The rising oil price is expected to boost the oil & gas exploration and production activities across the globe while creating opportunities for companies engaged in manufacturing, sales, and services of oilfield equipment. The recovery in oil & gas prices in 2018 has led to a decent surge in drilling activities across the globe and is expected to open up the long-suppressed oilfield equipment market such as perforating gun equipment and systems. Factors such as rise in oil & gas drilling activities across the globe, rising shale prospective and technological developments in perforating gun systems are expected to drive the perforating gun market in coming years. However, repercussions of 2014 - 2017 global downturn in oil & gas industry, including a delay of major oil & gas projects may restrain the market in a short-term scenario.
A Rise in Shale Gas Exploration & Production is Driving the Market
Technological innovation and the increasing efficiency of horizontal drilling and multi-stage hydraulic fracturing technologies are unlocking vast unconventional shale and tight hydrocarbon resources across the globe, especially in North America. Before each hydraulic fracturing operation, well pre-completion is carried out and the perforation of a well has to be performed. Explosive charges are used to create a perforation tunnel through the pipe, the casing and a small length of the reservoir. Perforating gun is the simplest technology of a well pre-completion in shale production. While many new technologies are being developed by leading players in the market, perforating gun technologies such as StimGun and GasGun are prevalent in the shale gas industry. Countries such as Argentina, Mexico, and China, have started to explore the commercial viability of their shale reserves. Hence, with rising exploration and production of shale oil & gas, the perforating gun market is also expected to witness a significant demand.
North America to Witness High Growth Rate
Drilling activities in North America have been increasing amidst rising oil & gas prices. The North American rig count reached 1254 in Jul 2018 an increase of around 8% from Jul 2017. The US accounted for more than 80% of the active rig in the region. The surge in drilling activities has created optimism in the North American oil & gas market and hence may be considered as a good sign for perforating markets. The shift from vertical to horizontal wells is the most important change to occur over the last decade in the region, allowing for greater formation access, while only incrementally increase the cost of the well. Within a few years, North American nonconventional production has also developed significantly and is expected to be an exporter by 2022. Hence, the growing shale industry in the region is expected to create ample opportunity for oilfield service providers engaged in perforating gun business.
US Set to Maintain High Demand
Crude oil production per day in the United States has increased by 10% from 2014, mainly due to increased exploitation of shale reserve through horizontal drilling and hydraulic fracturing. Among basins, Permian is the leading are witnessing one of the highest investment due to its low wellhead breakeven price compared to other basins. Permian accounted for the largest share in the new oil produced in the recent times. Also, the Gulf of Mexico has started to witness a sign of recovering as new projects are coming up. Ongoing investments by oil & gas in deep water and ultra-deepwater drilling activities, such as one by Shell Offshore for Vito, in the US Gulf of Mexico in 2018, are expected to create new avenues for perforating gun market in the country.
Key Developments in the Market
- March 2018: Schlumberger Ltd. introduced the Tempo instrumented docking perforating gun system at the SPE/ICoTA Coiled Tubing and Well Intervention Conference and Exhibition. This perforating gun system uses a combination of a plug-in gun design with real-time advanced downhole measurements enables and monitors the well’s dynamic underbalance to create clean perforations that boost reservoir productivity.
The major players include - Baker Hughes - a GE Co., Schlumberger Ltd., Weatherford International Ltd., Yellow Jacket (G&H Diversified Manufacturing, LP.), DYNAenergetics GmbH & Co KG, National Oilwell Varco Inc., Halliburton Company, Hunting PLC. amongst others.
Reasons to Purchase This Report
Current and future perforating gun 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 the fastest growth during the forecast period
Identify the latest developments and strategies employed by the major market players.
3 months 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 Oil & Gas Production & Consumption and Forecast until 2023 (in mtoe)
3.4 Onshore CAPEX Forecast in USD billion, until 2023
3.5 Offshore CAPEX Forecast in USD billion by Region, until 2023
3.6 Key Upstream Projects
3.7 Recent Trends and Developments
4. Market Dynamics
5. 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. Market Segmentation and Analysis (Overview, Market Size and Demand Forecast until 2023)
7.1 By Carrier Type
7.1.1 Hollow Carrier
7.1.2 Expendable Shaped Charge Gun
7.2 By Explosive Type
7.2.1 RDX (Cyclotrimethylene Trinitramine)
7.2.2 HMX (Cyclotetramethylene Trinitramine)
7.2.3 HNS (Hexanitrosilbene)
7.3 By Well Type
7.3.1 Horizontal & Deviated Well
7.3.2 Vertical Well
8. Regional Market Analysis (Overview, Market Size and Demand Forecast until 2023)
8.1 North America
8.1.1 United States
8.1.3 Rest of North America
8.2.3 United Kingdom
8.2.4 Rest of Europe
8.3 South America
8.3.4 Rest of South America
8.4.5 Rest of Asia-Pacific
8.5 Middle-East and Africa
8.5.1 Saudi Arabia
8.5.2 United Arab Emirates
8.5.7 Rest of Middle East and Africa
9. Key Company Analysis (Overview, Products & Services, Financial Analysis**, Recent Developments and Analyst View)
9.1 Baker Hughes - a GE Co.
9.2 Schlumberger Ltd.
9.3 Weatherford International Ltd.
9.4 Yellow Jacket (G&H Diversified Manufacturing, LP.)
9.5 DYNAenergetics GmbH & Co KG
9.6 National Oilwell Varco Inc.
9.7 Halliburton Company
9.8 Hunting PLC
*List not exhaustive
10. Competitive Landscape
10.1 Mergers & Acquisitions
10.2 Joint Ventures, Collaborations and Agreements
10.3 Market Share Analysis
10.4 Strategies Adopted by Leading Players
11.1 Contact Us
**Subject to availability on public domain