HYDERABAD, India, June 5, 2019 /PRNewswire/ -- According to new market research report by Mordor Intelligence, the market for Liner Hanger System is expected to grow at a CAGR of 5.46% during the forecast period of 2019 – 2024. Major factors driving the market studied are the rising unconventional and deepwater exploration and production activities, increasing need for higher productivity and efficiency, and the advantage of covering vast areas by a single rig employing long lateral drilling methods.
Highlights From The Report:
- With the revival of oil and gas prices and kick start of various offshore projects, the offshore segment is likely to register a higher growth rate, as compared to onshore. Moreover, greater degree of complexity in offshore oil & gas reserve formations is expected to push the companies to innovate and develop offshore specific Liner Hanger system.
- Asia-Pacific is expected to witness the fastest growth during the forecast period. China is by far the largest market in the Asia-Pacific region and is dominated by many local Liner Hanger system manufacturers unlike many other countries across the world.
- The risk of failure associated with Liner Hanger systems and the challenges associated with the availability of raw materials are likely to hinder the growth of the market studied.
- Onshore sector has been leading the market since long, and it is likely to remain the same throughout the forecast period.
- The offshore oil and gas industry accounts for about 30% of the global crude oil production. The Middle East, North Sea, Brazil, and the Gulf of Mexico are the major offshore oil and gas producing regions.
- Deepwater oil production is majorly concentrated in four countries – Angola, Brazil, Nigeria, and the United States. The Libra field in Brazil, the largest pre-salt discovery so far, began producing in late 2017 and the field development is expected to continue till 2020's.
- Moreover, the cost of operation in the offshore locations declined significantly over the past few years. This factor is encouraging the industry to step up its expenditure gradually in the future.
Read full report on Liner Hangers Market - Growth, Trends, and Forecasts (2019 - 2024)
Asia-Pacific to Witness the Fastest Growth:
- Asia-Pacific region is expected to witness the fastest growth during the forecast period, with China being by far the largest market.
- In response to the president Xi Jinping's call of August 2017 to expedite domestic exploration and production activities (particularly for natural gas) to improve national security, several companies, such as CNOOC, CNPC, and Sinopec, were set to increase their capital expenditure in exploration, development, and production activities. This will mean a significant boost to businesses for liner hanger systems in the coming years.
- In addition, the Chinese government is also undertaking significant favourable reforms to boost international participation in the oil and gas sector. As a critical part of the country's 13th five-year plan, the opening up of more acreage to independent participants are expected to diversify investment and boost drilling and completion activities, driving the liner hanger systems market in the country.
- Large new field developments in deepwater are expected to be the key drivers for growth in the Indian liner hanger system market. In April 2018, BP and Reliance Industries sanctioned the 2nd phase development of the "Satellite cluster" project, located in the Bay of Bengal.
- The companies are moving forward to develop the discovered deepwater gas fields in an integrated series of projects, and are expecting to produce 1 bcf/d, phased over 2020-22. Similar interests are being undertaken in other offshore fields as well, which are expected to result in the country witnessing greater demand for the expandable form of liner hangers in the long run.
- The developing markets, such as India, Indonesia, and Australia, are also expected to contribute to the growth of the region.
Know more about the Liner Hangers Market
Mordor Intelligence has segmented the Liner Hangers Market on the basis of type, location of deployment, and geography:
- Conventional Liner Hangers
- Expandable Liner Hangers
- Location of Deployment
- Rest of Asia-Pacific
- North America
- United States
- Rest of North America
- United Kingdom
- Rest of Europe
- South America
- Rest of South America
- Middle East & Africa
- Saudi Arabia
- United Arab Emirates
- Rest of Middle East & Africa
Browse in-depth TOC of Liner Hangers Market
The global Liner Hangers market was dominated by companies, such as Baker Hughes, Schlumberger, Halliburton, and Weatherford International. However, in the last fifteen years, the industry has witnessed penetration of various new companies, such as Innovex Downhole Solutions Inc., and Well Innovation AS, which are strengthening their presence in local, as well as global market.
About Mordor Intelligence
Mordor Intelligence, LLP. provides market intelligence and advisory services that empowers enterprises to shape their strategic decisions. With a strong team of in-house experts and a host of industry tie-ups, Mordor offers syndicated and custom market intelligence services that have helped more than 700 clients gain an edge over their competition. Mordor's expertise lies in niche analysis with a quick turnaround time, making it the preferred choice for startups as well as Fortune 500 organizations.
Name: Sameeksha Bansal
SOURCE Mordor Intelligence LLP