DUBLIN--(BUSINESS WIRE)--The "North America Oil and Gas Electric Submersible Pump Market - Growth, Trends, and Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.

The oil and gas electric submersible pump market in North America is expected to grow at CAGR of more than 7% in the forecast period of 2020-2025.

Increasing upstream activities in the Permian basin in the United States is one of the major driving factors for the ESP market. Additionally, about 70% of the world's daily oil and gas production comes from the mature fields, which are in a state of declining production. To enhance production from these mature fields, the demand for ESP is increasing.

On the other hand, the decline in crude oil prices due to the weaker demand from the end-users has led to a decrease in the drilling activities, and thus, the demand for the ESP is also likely to be hindered. Also, a declining number of offshore wells in the United States is expected to restrain the market growth.

With 990 active onshore rigs in the United States and increasing production from the Permian basin, the onshore sector is expected to dominate the oil and gas ESP market.

The United States has one of the largest technically recoverable shale gas reserves and the second-largest tight oil reserves in the world. The availability of ample reserves is expected to create significant opportunities for ESP manufacturers and suppliers in the near future.

With oil production of 17 million barrels per day in 2019, the United States is leading the market of ESP. It is expected to continue its dominance in the forecast period.

Key Market Trends

Onshore Sector to Dominate the Market

The electric submersible pump (ESP) system is an artificial-lift system that utilizes a downhole pumping system that is electrically driven. The pump typically comprises multiple centrifugal pump sections that can be individually configured ideally for the production and wellbore characteristics of an application.

• Canada has third-largest oil reserves, of which 96% are comprised of oil sands reserves. The sand oil available here is high-density oil and has high sand particle content. Hence, there is a high demand for artificial lift systems, and in turn, for ESPs as they are suitable for lifting high-density fluids.
• Since 2009, the sand oil production rapidly increased, while conventional oil production has witnessed a stagnancy. In 2018, the country recorded a sand oil production of 2.9 million barrels per day.
• In Mexico, the onshore basins are mature, show clear creaming curves for drilling. These mature oilfields are expected to use electric submersible pumps in the blocks to increase the oil output.
• With total crude oil production of 24.6 million barrels per day, the market of oil and gas is growing and simultaneously driving the need for ESP.
• Due to the COVID-19 pandemic, a delay in upstream projects is expected for a short period. Later in the forecast period, with the initiation of new projects and completion of drilled wells, the market of the ESP is expected to grow considerably.

The United States to Dominate the Market

The United States was one of the largest producers of crude oil and natural gas, accounting for around 18% and 23% of the global production, respectively, in 2019. The production surged in 2019, mainly due to robust drilling in its shale reserves, led by the Permian Basin.

• 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 systems in the United States, in the longer run.
• As of April 2019, 8390 drilled wells are incomplete in the country, with the Permian Basin having the largest share. These wells are expected to be completed in the coming years, creating ample opportunity for the ESPs system suppliers in the future.
• At the beginning of 2018, the government announced the opening of 98% of the coastal water for oil and gas exploration and production. The announcement is expected to drive the demand for ESP in the offshore sector in the long run.
• Despite the decrease in the number of active rig count to 990 in 2019, the production of both crude oil and natural gas is increasing, driving the market of the ESP significantly.

Competitive Landscape

The North America oil and gas electric submersible pump market is moderately consolidated. Some of the major companies include Borets International Limited, Halliburton Company, Weatherford International plc, Baker Hughes Company, and Schlumberger Limited.

Key Topics Covered:

1 INTRODUCTION

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET OVERVIEW

4.1 Introduction

4.2 Market Size and Demand Forecast in USD billion, till 2025

4.3 Recent Trends and Developments

4.4 Government Policies and Regulations

4.5 Market Dynamics

4.5.1 Drivers

4.5.2 Restraints

4.6 Supply Chain Analysis

4.7 Porter's Five Forces Analysis

5 MARKET SEGMENTATION

5.1 Location of Deployment

5.1.1 Offshore

5.1.2 Onshore

5.2 Geography

6 COMPETITIVE LANDSCAPE

6.1 Mergers and 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 Weatherford International plc

6.3.3 National Oilwell Varco Inc.

6.3.4 Baker Hughes Company

6.3.5 Borets International Limited

6.3.6 Alkhorayef Petroleum Company

6.3.7 DOS Canada Inc.

6.3.8 Schlumberger Limited

7 MARKET OPPORTUNITIES AND FUTURE TRENDS

For more information about this report visit https://www.researchandmarkets.com/r/d6in2x

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
This email address is being protected from spambots. You need JavaScript enabled to view it.
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900