BAKU, Azerbaijan, August 31. Investments in fossils extraction methods are expected to surge by nearly 20 percent in 2023, amounting to a total of $58 billion, Trend reports via Rystad Energy, independent energy research and business intelligence company from Norway.
Oil and gas production companies are actively seeking efficient and cost-effective ways to increase their output. This drive is poised to provide a substantial boost to the well intervention market, the company said.
According to Rystad Energy's analysis, this marks just the beginning of a forthcoming upswing as the emphasis on efficiency becomes even more pronounced.
Looking ahead, the intervention rate, which indicates the proportion of oil and gas wells undergoing intervention processes, is anticipated to reach 17 percent by 2027. This would encompass around 260,000 wells globally.
Out of the overall expenditure, as Rystad Energy estimates, more than $11 billion is slated to be allocated to the wireline and perforating segment. The combined sectors of intervention units and oilfield chemicals will account for 35 percent of the spending. Furthermore, the collective investments in coiled tubing, water management, and intervention tools are projected to surpass $20 billion by 2023-end.
To enhance production without drilling new wells, operators are more inclined to engage in intervention activities within mature assets that have been in production for over five years, the company believes. These assets typically exhibit relatively high production rates but are showing signs of decline. The year 2024 is anticipated to witness significant growth of around 9 percent in intervention-related activities, particularly in onshore interventions across Asia, South America, and Africa, thus underscoring its importance for the well intervention market.
In terms of regional distribution, North America is expected to account for 64 percent of the total oil and gas wells primed for intervention by 2027. Meanwhile, Asia and South America will peak in 2026, each with 41,413 and 9,703 wells respectively, contributing to the market's global landscape.