The market for electric submersible pumps (ESP) is expected to grow at a CAGR of 6.09% during the forecast period of 2019

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Jul 03, 2019, 08:30 ET

NEW YORK, July 3, 2019 /PRNewswire/ --

Market Overview

The market for electric submersible pumps (ESP) is expected to grow at a CAGR of 6.09% during the forecast period of 2019 – 2024. Major factors driving the market studied include the increasing number of mature fields, and the adoption of ESPs by oil and gas operators due to the operational advantages of ESP over other forms of artificial lift. However, ESP run times can be severely compromised in high sand and solid content environments. The performance also degrades while pumping viscous fluids or high gas-to-liquid ratio mixtures. Therefore, the associated failure and downtime risk with ESP is expected to hinder the market growth.

Download the full report: https://www.reportbuyer.com/product/5790919/?utm_source=PRN - The onshore sector accounts for the largest share in the electric submersible pumps market owing to the increasing number of mature fields in the sector.- Developments of potential shale reserves around the world are expected to create significant opportunities for ESPs in the future.- North America dominated the market across the globe with the majority of the demand coming from the United States.

Key Market Trends

Increasing Demand from Onshore Oil and Gas Sector

- Onshore oil and gas sector accounts for the largest share in the electric submersible pumps market. In 2018, the average global onshore rig count reached 1987 rigs, representing an increase of 9.7% over the previous year, in turn, is boosting the demand for ESPs.- In April 2018, the National Hydrocarbons Commission (CNH) of Mexico published the drafts of the bidding terms, license contracts and joint operating agreement for PEMEX new onshore Farm Outs, with the purpose of developing exploration and extraction activities in 7 different contractual areas. These onshore farm-outs also aim to revive mature assets in the Cardenas-Mora and Ogarrio fields with the help of artificial lift systems.- Also, growing focus toward heavy oil reservoirs, coupled with the requirement of ESP systems in shale reservoirs, is expected to drive the business growth.- Adding to this, the Marginal/Stripper wells which produce less than ten barrels of oil or 60,000 cubic feet of natural gas per day require additional technological aid to increase its production. Factors such as increasing number of marginal and stripper wells, coupled with the growing demand to produce oil at the minimum cost is likely to drive the demand for ESPs in the coming years.- Therefore, the increase in the number of wells drilled along with the demand for low-cost production solutions is expected to augment the demand for ESPs in the onshore sector over the forecast period.

North America to Dominate the Market

- North America is estimated to be the largest market among the regions for the market studied in 2019.- The oil and gas industry in the United States is projected to provide a huge impetus to the ESP market on account of widespread investments lined up in oil and gas projects for the coming years.- 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. Such robust growth in terms of new projects is projected to create a demand for new ESPs and gas lift systems in the United States, in the long run.- In Canada, the sand oil available in is of high-density oil and has high sand particle content, due to which oil transport from the bottom hole of the oil well to the surface requires high pressure. Hence, there is high demand and in turn, assistance from the artificial lift. However, the usage of electric submersible pumps (ESP) for pumping the sand oil is very difficult due to the oil's high viscous nature. This, in turn, is expected to limit the demand for ESP in Canada.- On the Mexican side of the Gulf of Mexico (GoM), PEMEX has made several discoveries. PEMEX has issued contracts for the development of these fields. Hence, in the long run, the demand for electric submersible pumps is likely to emanate from this region.

Competitive Landscape

The global electric submersible pumps market is consolidated with the top 3 companies accounting for approximately 50% of the market. Some of the major companies include Baker Hughes, a GE Company, Schlumberger Limited, Borets International Limited, Novomet, and Halliburton Company.

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