Market Trends of United States Liner Hanger System Industry
This section covers the major market trends shaping the US Liner Hanger System 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 well completion and can be mechanical or hydraulic, premium or standard, rotating or non-rotating, conventional or expandable, and pocket slip.
- 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.
- ConocoPhillips reported its exploration success in Alaska in 2018. Based on the results, the company believes that it has captured 0.5 to 1.1 Bboe of gross discovered resource, with 75% of its prospective exploration acreage still to be drilled. The discovered field is expected to drive the LHS demand significantly.
- With total crude oil production of 17 million barrels per day in the United States, the market of oil and gas is growing and simultaneously driving the need for liner hanger systems.
- Due to the Coronavirus pandemic in 2020, delay in upstream projects can be expected. Later in the forecast period, with the initiation of new onshore projects and completion of drilled wells, the market of the liner hangers is expected to grow considerably.
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Conventional Liner Hanger System to Dominate the Market
- Mechanical LHS is designed for vertical, onshore, and low-deviation wells, whereas the hydraulic liner hangers are mostly used in offshore wells and horizontal, deep, and HP/HT onshore wells.
- 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 conventional 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 conventional liner hangers.
