Market Trends of Saudi Arabia Liner Hanger System Industry
This section covers the major market trends shaping the Saudi Arabia Liner Hanger System Market according to our research experts:
Onshore Segment 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 well completion and can be mechanical or hydraulic, premium, or standard, rotating, or non-rotating, conventional or expandable, and pocket slip.
- By 2028, according to plans, Aramco plans to produce 0.65 bcm of natural gas per day and is expected to target unconventional gas reserves in North Arabia, the South Ghawar, and the Jafurah Basin, East of Ghawar.
- Saudi Arabia reported 100 active onshore rigs and 20 active offshore rigs in April 2019. The deployment of these rigs is expected to increase drilling activities, which is further likely to increase the demand for LHS.
- The country has vast shale reserves, and the increasing exploitation of its unconventional reserve is expected to drive the demand for liner hanger systems in the long run.
- With the largest reserves of oil and gas and the highest production from several onshore fields, the onshore segment is expected to drive the market considerably.
Understand The Key Trends Shaping This Market
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Conventional LHS to Dominate the Market
- In 2019, with 297.6 million thousand barrels, the Kingdom of Saudi Arabia (KSA) held the second-largest proven oil reserves in the world after Venezuela. The vast reserves are likely to dive the LHS market in the long term.
- Further, in Saudi Arabia, the focus of E&P activities has been increasingly shifting toward the offshore Red Sea, which in turn, is expected to result in more significant opportunities for the conventional liner hanger system market players in the country.
- Saudi Aramco is continuously engaged in exploration and development to compensate for declining fields elsewhere, creating market opportunities for conventional liner hanger systems.
- Despite a decrease in oil production to 11.8 million barrels per day, the increasing gas production to 113 bcm in 2019 is significantly uplifting the demand for conventional LHS in Saudi Arabia.
- Owing to the higher production of crude oil and natural gas from the onshore fields, the use of hydraulic and mechanical liner hanger systems remained higher in the country. However, with the increasing quest for offshore oil and gas reserves, the demand for expandable LHS is also expected to increase.
