Well Intervention Market 2023 – 2030 By Application (Onshore, Offshore) Well (Horizontal, Vertical),Service (Logging and Bottomhole Survey, Tubing/Packer Failure and Repair, Stimulation), Intervention (Light, Medium, Heavy) - Partner & Customer Ecosystem (Product Services, Proposition & Key Features) Competitive Index & Regional Footprints by MarketDigits
Industry : Automation & Process Control | Pages : 157 Pages | Published On : Jul 2023
The estimated revenue of the global well intervention market was $7.6 billion in 2023, and it is projected to reach $9.3 billion by 2030, growing at a CAGR of 4.2% during the forecast period from 2023 to 2030. The market is being driven by the increasing efforts of upstream companies to enhance production from mature fields. Additionally, the development of shale reservoirs is expected to contribute to the growth of the well intervention market, as more intervention processes are employed to optimize oil production.
Well Intervention Market Dynamics
Driving Factor: Development of Shale Reservoirs
The rapid growth of shale reservoirs as an energy resource for oil and gas production is a major driver for the well intervention market. Shale reservoirs are known for their low permeability, making it challenging to extract crude oil and gas. While drilling can recover a significant amount, a substantial portion remains trapped within the reservoir. This necessitates the use of intervention processes to optimize oil production in shale reservoirs. Techniques like horizontal drilling and well stimulation tools enable the extraction of shale oil and gas. Shale reservoirs require proper zonal isolation and cementing processes due to the risk of water shut off, which further drives the demand for well intervention services. The development of shale reservoirs in countries like China, Mexico, Libya, Russia, and Argentina is expected to boost drilling and production activities, driving the growth of the well intervention market in North America, Latin America, and Asia Pacific.
Constraint: Declining Demand for Oil in Europe
The declining consumption of oil in Europe is impacting drilling activities in the region. The transition towards renewable energy sources, driven by climate change initiatives and a shift away from fossil fuels, has led to a decreased reliance on oil and gas. The decline in oil consumption is expected to continue as Europe focuses on renewable energy, such as wind, solar, hydro, and geothermal energy. This transition affects the growth of oil production and subsequently hampers well exploration, drilling, and intervention activities in the well intervention market.
Opportunity: Growing Demand for Offshore and Subsea Well Intervention
The increasing demand for oil and gas has driven the exploration of offshore and subsea resources. As onshore wells age, companies are turning to unconventional offshore resources. Additionally, mature offshore wells require intervention services to enhance oil and gas production. Investments in offshore well interventions are substantial due to the technological challenges and costs involved. However, advancements in offshore production technologies, such as light well intervention and remotely operated intervention, have made offshore production more economical. These advancements create opportunities for cost-effective surveillance and well intervention solutions in shallow water, deepwater, and ultra-deepwater applications, expanding the potential of the well intervention market.
Challenge: Implementation of Artificial Lift Technologies in Horizontal Wells
Horizontal drilling is essential for accessing hydrocarbons in unconventional reservoirs, but it presents challenges for implementing artificial lift technologies. The complex nature of horizontal wells, including steep decline curves, turbulent fluid production, and irregular wellbore geometries, poses difficulties for conventional artificial lift technologies. Artificial lift technologies are crucial for improving production in mature wells, especially in unconventional formations. However, selecting suitable artificial lift systems for horizontal wells is challenging due to factors like wellbore casing size, well curvature, and production flow rate fluctuations. Operators often install different artificial lift types over the well's lifecycle, which can be costly. The implementation of artificial lift technologies in deep wells with long horizontal sections in shale reserves is particularly challenging. Innovative methods are needed to lift relatively small volumes of liquid from these mature wells with low reservoir pressure and low liquid inflow rates.
The sand control services segment is projected to experience the highest growth rate during the forecast period. Sand control interventions are conducted in regions where sand infiltration is high, the formation is loosely packed, and the risk of sand intrusion into the well from the producing zone is elevated, causing production-related issues. The demand for sand control services is witnessing significant growth due to the development of unconventional and subsea oil and gas fields.
In terms of application, the onshore segment is expected to dominate the well intervention market in the forecast period. Onshore wells are extensively drilled worldwide, particularly in regions such as the Middle East, North America, Africa, and Asia Pacific, which offer substantial oil and gas production potential. The increasing demand for well intervention services and solutions in the onshore segment is driven by lower costs associated with onshore oilfield activities compared to offshore operations. Moreover, many onshore fields in the Middle East and North America are in their declining phase, requiring well intervention services to restore or enhance production from reservoirs. Additionally, the growth of onshore well intervention market is fueled by discoveries in shale reserves, as well intervention operations are integral to the completion and production phases of all wells.
Among different well types, the horizontal wells segment is anticipated to grow at the fastest rate during the forecast period. Horizontal wells, characterized by drilling at an inclination of greater than 80 degrees, are a type of multi-directional drilling technique aimed at improving reservoir performance. The advantages of horizontal wells include increased production rate due to longer wellbore length, reduced pressure drop around the wellbore, lower future remedial work requirements, and lower fluid velocities around the wellbore. According to service providers, horizontal wells require 2-3 times more intervention operations compared to vertical wells, as they face greater challenges during production, such as water shutoffs and wax formations.
In terms of intervention type, the medium intervention segment is expected to grow at the fastest rate during the forecast period. Medium well intervention involves the use of coiled tubing and snubbing units (hydraulic workover rigs) to perform interventions at dead or live oil and gas wells, particularly in unconventional oilfields. Snubbing units are preferred for wells prone to kicks. Services in the medium intervention segment include stimulation services, tubing/packer failure and repair, fishing, paraffin/asphaltene/hydrates removal, and remedial cementing. Offshore medium well intervention services typically require 4-15 days for vessel deployment. The surge in developments of unconventional oilfields is driving the growth of the medium well intervention segment.
North America is expected to be the largest and fastest-growing region in the well intervention market during the forecast period. The United States, in particular, holds a significant position as the largest producer and consumer of oil globally. The US has expanded its oil production through the "Shale Revolution," which combines hydraulic fracturing and horizontal drilling to tap into unconventional reserves like tight oil formations and shale formations. Additionally, artificial lifts are utilized to enhance production from mature fields. The Permian Basin in Texas and offshore fields in the Gulf of Mexico have matured, leading to increased demand for well intervention services in the region.
Prominent Players in the Global Well Intervention Market
Leading players in the global well intervention market include Halliburton (US), Schlumberger (US), Baker Hughes (US), Weatherford International (US), NexTier Oilfield Solutions (US), NOV (US), Archer (Norway), Altus Intervention (Norway), and Expro Group (UK).
This research report categorizes the well intervention market based on service, intervention type, well type, application, and region
Based on Service:
• Logging and Bottomhole Survey
• Tubing/Packer Failure and Repair
• Remedial Cementing
• Zonal Isolation
• Sand Control
• Artificial Lift
Based on Intervention Type:
• Light Intervention
• Medium Intervention
• Heavy Intervention
Based on Well Type:
• Horizontal Well
• Vertical Well
Based on Application:
o Shallow Water
Based on the region:
• North America
• Asia Pacific
• South & Central America
• Middle East
• Halliburton introduced StrataXaminer in April 2023, a wireline logging service that utilizes imaging technology to analyze reservoir structures and identify important geological features such as bedding, fractures, fault zones, and potential flow barriers.
• In March 2023, Schlumberger and Microsoft announced a partnership to provide advanced data management solutions to the energy industry. They developed an Artificial Intelligence (AI) enhanced cloud-native solution for the Open Subsurface Data Universe (OSDU) platform, optimized for Microsoft Azure.
• In March 2023, Baker Hughes and MHWirth, a subsidiary of Akastor, formed a joint venture company within the Subsea Drilling Systems business. This collaboration aims to deliver offshore drilling equipment and services worldwide, offering customers an extensive range of products and solutions.
• Weatherford International launched ForeSite sense in October 2020, a reservoir monitoring solution that provides real-time data on downhole conditions, including pressure, temperature, and flow measurements. This technology is applicable to various types of wells, including mature wells, shale wells, and deepwater wells.
• In July 2020, Halliburton and TechnipFMC introduced Odassea, a distributed acoustic sensing solution designed for subsea wells. Odassea enables operators to perform live seismic imaging and reservoir diagnostics, improving the accuracy and quality of reservoir data.
Table and Figures
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