Global Artificial Lift Market is Segmented By Type (Progressive Cavity Pumps (PCP), Electrical Submersible Pumps (ESP), Gas Lift, Rod Lift, Hydraulic Pumps, Others), By Well Type (Horizontal, Vertical), By Application (Onshore, Offshore), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030.
Artificial Lift Market Size
The Global Artificial Lift Market size is growing at a high CAGR during the forecast period (2023-2030).
Artificial lift is an engineering technique for lowering the producing bottom hole pressure (BHP) on a formation to increase the well's production rate. A positive-displacement pump, like a beam pump or a progressive cavity pump (PCP), can lower the pressure at the pump intake. A downhole centrifugal pump, which might be part of an electrical submersible pump (ESP) system, can also be used.
With gas lift, the fluid density in the tube is reduced, and expanding gas helps lift the fluids, resulting in a lower bottom-hole flowing pressure and higher flow rate. Artificial lift generates flow from a well that isn't producing or boosts flow from a well producing at a slower pace. A vast majority of oil wells require artificial lifts throughout their life cycle and many gas wells benefit from an artificial lift to remove liquids from the formation and allow gas to flow more freely.
Over 2 million oil wells are active globally. Artificial lift is used in more than a million wells. Sucker-rod pumps are used in more than 750,000 elevated wells. Sucker-rod pumps elevate roughly 350,000 wells in the United States. Approximately 80% of all oil wells in the United States are stripper wells producing less than 10 barrels per day with some water cut. Sucker-rod pumps are used to elevate the great majority of these stripper wells. Rod-pumped wells account for 27% of nonstripper higher volume wells; gas-lifted wells account for 52% and the rest are raised using ESPs, hydraulic pumps, and other means.
Artificial Lift Market Scope
|
Metrics |
Details |
|
Market CAGR |
High |
|
Segments Covered |
By Type, By Well Type, By Application, and By Region |
|
Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
|
Fastest Growing Region |
Asia Pacific |
|
Largest Market Share |
North America |
For More Insights Request Free Sample
Artificial Lift Market Dynamics
The demand for artificial lifts is mainly driven by the increasing global demand for oil and gas. It is the most important driver for the market. The oil price volatility and tougher environmental regulations are key factors in limiting the growth of this market.
Increasing global demand for oil and gas
The demand for oil and gas globally increases day by day due to rapidly increasing populations and modern economic progress. Oil and gas are the foundational energy sources of modern society. Refined petroleum products are used as fuel by the transportation sector and electricity production.
Natural gas is used for various wide-ranging industrial and commercial applications, such as metal processing, electricity production, and heating. Despite the advent of renewable energy, oil and gas dominance is nearly total in the short and medium term. The increasing global demand for oil and gas is leading to the exploitation of new oil fields that hold unconventional sources of oil. It is a key driver for the growth of the global artificial lift market.
Oil price volatility and tougher environmental regulations
Artificial lift technologies are mainly deployed for oil extraction from unconventional sources such as oil sands and shale oil. The extraction process is complicated and involves the high usage of modern extractive technologies. It results in very high oil production costs, with costs ranging from US$ 45 per barrel to US$ 75 per barrel.
Global oil prices have experienced massive volatility due to various international economic and geopolitical factors. Oil prices crashed from more than US$ 107 per barrel in June 2014 to nearly US$ 44 per barrel by January 2015. The oil prices remained below US$80 per barrel for most of the decade until early 2022. It led to a complete halt in oil production from unconventional sources since it requires high oil prices to be economically sustainable.
The production of oil from non-conventional sources such as shale has a degrading impact on the environment. The environmental implications of surface mining of oil shale formations are similar to those of open-pit mining. Furthermore, combustion and thermal processing produce trash that must be disposed of and atmospheric damage emissions such as carbon dioxide, a major greenhouse gas. Governments have enacted stringent regulations that have curbed shale oil production. Oil price volatility and tougher environmental restrictions are critical challenges to the growth of the market.
COVID-19 impact on Artificial Lift Market Growth
The global artificial lift market experienced uneven impacts on revenue streams in 2020 due to the COVID-19 pandemic. The government-imposed lockdowns and movement restrictions affected the manufacturing of artificial lift devices and on-site installation. Although oil production was not materially affected, major oil-producing companies cut back on new investments due to a collapse in demand from various sectors such as transportation.
The research and development of new artificial lift technologies were impacted due to the pandemic since government lockdown and restrictions led to the curtailment of on-field activities. Therefore, the commercial deployment of new technologies was delayed and financing of new projects was curtailed, impacting the revenues of various companies in the artificial lift sector.
The short-term impact of the COVID-19 pandemic has been relatively severe for the artificial lift market. The pandemic and its economic and geopolitical uncertainty are expected to accelerate the energy security of oil and gas production in various countries. It will lead to greater oil demand from unconventional sources such as fracking and sand oil. The demand for artificial lift technologies remains strong and is expected to grow gradually in the coming years.
Artificial Lift Market Segment Analysis
The artificial lift market is segmented into type, well type, application and region. The artificial lift market is further segmented into two categories based on application, namely onshore and offshore, with offshore expected to be leading in this development.
The offshore segment is expected to increase at the fastest rate during the projected period. Hydraulic pumping and gas lifting is the most common artificial lift methods utilized in offshore oil wells. Because offshore has vast unexplored reserves, corporations have started seeking offshore regions for oil and gas development. As a result, the offshore market requires more money than the onshore market. 2,500–3,000 offshore projects are expected to be decommissioned between 2019 and 2040, according to the IEA, as they have reached the end of their operating lifespan. The North Sea, the Gulf of Mexico, and the Persian Gulf have the most maturing shallow oil fields.
Global Artificial Lift Market Geographical Share
North America is leading in the global artificial lift market. The region accounts for the largest market share, primarily due to many unconventional oil sources such as sandy tar pits and the massive rise in fracking oil exploration in the U.S., Canada, and the Gulf of Mexico.
Sucker-rod pumps elevate roughly 350,000 wells in the United States. Approximately 80% of all oil wells in the United States are stripper wells producing less than 10 barrels per day with some water cut. Sucker-rod pumps are used to elevate the great majority of these stripper wells. The Gulf of Mexico has some of the biggest offshore shallow oil fields that require artificial lift technology for extraction.
Some of the major engineering companies that offer oil well servicing and artificial lift technology are located in the North American region. Major companies are Schlumberger Limited, Halliburton, Baker Hughes Company, and Weatherford International. Major research, development, and innovation within the oilfield services sector have primarily come from companies based in the North American region. Due to oil extraction's challenging and unconventional nature, the North American region will retain the largest share in the global artificial lift market.
Artificial Lift Companies
The global artificial lift market is competitive due to various artificial lift devices and services that cater to different customer requirements. Some of the players contributing to the growth in the segment are Schlumberger Limited., Weatherford International, Halliburton, Baker Hughes Company, Borets International, NOV Inc., ChampionX, JJ TECH, OilServ, and Novomet. The significant players adopt several growth strategies such as new product launches, joint ventures, and collaborations, contributing to global growth in the industry.
Schlumberger Limited
Overview: Schlumberger Ltd is a multinational engineering services company specializing in designing and manufacturing energy equipment and energy services. The company's business is segmented into drilling, well construction, production systems, digital automation, and energy consulting. The company supplies its products and services to a comprehensive range of global oil and gas companies, including Exxon Mobil Corporation, BP PLC, Royal Dutch Shell N.V., and TotalEnergies. The company's facilities are located in more than 50 countries globally. Schlumberger Limited was founded by brothers Marcel and Conrad Schlumberger in 1926 and is headquartered in Austin, Texas, U.S.
Product Portfolio
- Sensia Lift Control Systems is the company's flagship brand that encompasses the entire portfolio of artificial lift systems. The company uses entire pumps such as rod lift pumps, progressing cavity pumps (PCPs), hydraulic stroking units, ESPs, electric submersible PCPs (ESPCPs), horizontal surface pumps, and gas lift systems. It also encompasses lift control and optimization services.
Key Developments:
- In 2020, Schlumberger announced the introduction of LIFT IQ, a comprehensive product life management solution that offers real-time monitoring, optimization, and diagnostics of artificial lift systems. LIFT IQ service has a high degree of customization and can incorporate various features depending on client requirements.
