DUBLIN--(BUSINESS WIRE)--The "Production Testing Market - Growth, Trends, and Forecast (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.
The production testing market is dependent on the number of production wells, and is expected to grow at a CAGR of more than 2.54% during 2020-2025.
Major factors driving the market include increasing number of production well, especially in the United States and declining production from mature fields are resulting in increasing demand for tests such as drill stem test, frac water flowback monitoring. On the other hand, the lack of new projects in the offshore sector between 2014 and 2017 is expected to restrain the market growth.
Key Market Trends
Rising Deepwater Offshore Development Activity
- Land-based and shallow water oil fields have reached their maturity. In the Permian Basin, the most important basin currently in terms of crude oil production, the production from old wells have started to decline. And there is little scope for new discovery in these areas. As a result, the oil and gas industry is shifting towards the deeper regions, in search of oil and gas to meet the increasing demand.
- Also, more than half of the oil and gas discoveries in the last three to four years have been in the deep sea and ultra-deep sea regions. The number of Final Investment Decisions (FIDs) (for reserves of volume more than 25 million boe, excluding shale/tight) in 2018 increased by more than 80%, compared to 2016. Further, in 2019, the number of FIDS is expected to increase by around 10% compared to 2018. Offshore oil and gas reserves accounted for the majority of the FIDs in the last three years. The deepwater liquid production is expected to reach 10.3 million bbl/d in 2019, an increase of 700 kbbl/d compared to 2018.
- Brazil is one of the largest markets for deepwater oil and gas projects. The Brazilian oil and gas market is driven by successful regulatory changes and improving financials. The Brazilian government is aiming at 2 MMb/d of additional oil production by 2027, mostly from deepwater areas. The country is expected to sanction 10 FPSOs, highest in the world, during 2019-2021.
- This rising deepwater offshore development activity to meet the increasing crude oil demand is expected to drive the demand for production testing.
North America to Dominate the Market
- The production testing market is dominated by the US mainly due to the highest number of wells being drilled each year and declining production from mature wells.
- Also, the decline rate in shale reserves such as Permian basin is more than 5-10% annually, which is a widely used rule of thumb. This has encouraged the oil & gas producers in the shale reserve to opt for production testing for better reservoir management and production optimization.
- Also, the number of wells completed in the Permian basin in 2018 was 96% more than that drilled in 2016. Such huge growth in the completion activity has led to an increased number of new wells resulting in a huge demand for production testing.
- Further, the United States in the near term is expected to shift its focus on capital discipline and completing the uncompleted wells due to lack of pipeline takeaway capacity as major pipeline are expected to be online in 2019 and 2020. This is expected to give an additional boost to the production testing market in North America.
- However, lower capital investment in drilling in Canada in 2018 and 2019 compared to previous years is expected to restrain the market growth in North America.
Key Topics Covered:
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET OVERVIEW
4.2 Market Size and Demand Forecast in USD billion, till 2025
4.3 Global Active Rig Count, 2016-2018
4.4 Number of Wells Completed, 2010-2018
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1.1 North America
5.1.4 South America
5.1.5 Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Halliburton Company
6.3.2 Schlumberger Limited
6.3.3 Baker Hughes Company
6.3.4 Expro Group
6.3.5 Tetra Technologies, Inc.
6.3.6 Express Energy Services
6.3.7 Fesco LTD.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/v50t6