Sand Control Systems Market : Status and Forecast, by Players, Types and Applications | 2024
The
global sand control systems market is oligopolistic in nature wherein
top four companies, namely Schlumberger Limited, Baker Hughes Inc.,
Halliburton Company, and Weatherford International commanded more
than 92% share in 2015, notes Transparency Market Research (TMR) in a
new report. The capability of these companies to provide an array of
services across the value chain and their capability to provide
integrated solutions for oil and gas industries makes them leaders in
the sand control systems market. High technical expertise and capital
intensive nature are some other factors for the dominance of key
players in the sand control systems market.
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Apart
from this, these companies are engaged in R&D to develop new
products and services to better serve the oil and gas industry. Some
of the top players have adopted the inorganic growth route engaging
in mergers and acquisitions thereby boosting their research and
engineering facilities and technical expertise. These moves are
further consolidating the foothold of well-established players in the
sand control systems market.
As
per a TMR report, the global sand control systems market is
anticipated to be worth US$5,372.8 mn by 2024-end expanding at a CAGR
of 5.8% between 2017 and 2024. The demand in the market translated
into opportunities worth US$3,603.7 mn in 2017. Based on technique,
resin coated gravel segment is predicted to rise at a steady rate in
the upcoming years; resin coated gravel technique finds widespread
use to control sand production in oil wells. However, demand for
gravel packing is on the rise due to its efficacy; the segment is
anticipated to rise at a significant pace through 2024. Asia Pacific,
among key regions, led the sand control systems market in recent
years and the region is anticipated to retain supremacy in the years
ahead too.
Advancements
in Sand Control Techniques Boosts Uptake
In
the last decade crude oil prices have witnessed drastic fluctuations
that have alerted oil production companies. To offset the challenging
market environment, efforts from oil producing companies in the U.S.
have led operational rigs to become more efficient with enhanced
productivity. This is because of improvement in sand control
techniques, long laterals, and additional fracking stages. In this
scenario, oil producing companies are shutting down operations in
unproductive oil wells and are focused on maximizing production of
new oil fields. This is expected to fuel the sand control systems
market.
With
dwindling crude oil prices, oil producers are vying to incorporate
advanced production equipment such as sand control techniques to
optimize rig operations.
Advancements
in sand control techniques is a key factor boosting the sand control
systems market. With depleting reserves of onshore oilfields, oil and
gas exploration companies are striving to tap offshore oilfields in
deep waters. Although offshore oilfields yield large volumes of crude
oil and natural gas, they are highly prone to sand contamination.
This requires special sand control systems suitable for offshore
oilfields, which help exploration and production companies to carry
out drilling functions relatively easily. To serve this, oilfield
service providing companies have introduced new sand control
techniques suitable for sand control systems for offshore
environments. Consistent efforts from key players to develop advanced
sand control systems will bode well for sand control systems market
in the future.
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High
Cost of Advanced Sand Control Systems Limits Adoption
However,
factors such as economic viability of sand control systems to tap
deep-water oil reserves is limiting their use. While sand control
equipment have helped oil producers alleviate deep-water challenges,
cost considerations have put forth questions whether these systems
would serve sand control pursuits.
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