Artificial Lift Market Revenue to Hit $9.0 billion | Breaking Barriers

Artificial lift methods are used to increase the pressure within oil & gas reservoirs to increase crude oil production rates from producing wells. These methods are used when the natural drive energy of the reservoir is not strong enough to push the oil to the surface.

Artificial lift comprises techniques in the oil and gas sector to boost hydrocarbon production from wells with insufficient natural pressure. Employed when reservoir pressure is inadequate, methods like rod lift systems, electric submersible pumps, gas lift, and hydraulic pumping enhance flow rates. These mechanisms enable more efficient recovery, compensating for declining reservoir pressure and optimizing production in mature wells. The growing requirement to maximize the production potential of mature fields is one of the leading factors driving the growth of the artificial lift market, as the demand for oil and gas is constantly growing.

The global artificial lift market is expected to grow from an estimated USD 7.3 billion in 2023 to USD 9.0 billion by 2028, at a CAGR of 4.4% during the forecast period.

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Advancements in upstream activities concerning unconventional oil & gas reserves, the growing requirement to maximize the production potential of mature fields, and a rise in heavy oil production are leading to a surge in demand for artificial lift services.

As per Halliburton's survey, a prominent figure in the artificial lift market, approximately 70.0% of the global oil & gas production arises from mature fields, many of which are in secondary or tertiary production phases. Gas holds an average recovery factor of 70.0%, while oil stands at 35.0%. These recovery rates might dwindle due to geological attributes, resource constraints, or inefficiencies in outdated technologies. Mature fields witness declining production post-initial recovery efforts or after tapping into easily accessible hydrocarbons. Despite this, mature fields remain a valuable resource, projected to meet future energy demands. The prime issues include uneconomical oil production and technological limits in recovery. With new fields depleting swiftly due to heightened production, mature field numbers have surged. The potential for recovery remains substantial, notably with 80.0% of reserves in the Middle East and North Africa, 43.0% in Asia Pacific, and 24.0% in Latin America. Major oil & gas firms are directing their efforts toward innovative methods for exploiting untapped reserves in mature fields, surpassing the need for new wells and their high costs. Their focus lies in enhancing recovery and extending the life of these fields beyond natural levels. Artificial lift stands as a crucial element in this endeavor, boosting recovery and prolonging the life of mature fields.

Companies within the oil and gas sector are directing efforts towards exploration, driven by the challenges posed by existing fields that struggle to yield hydrocarbons economically and may eventually need abandonment. Significant discoveries have been made both onshore and offshore, with the BP Statistical Review of 2020 indicating a vast reserve potential of ~1,733.9 billion barrels of oil by the end of 2019. This trend is anticipated to escalate upstream activities, thereby propelling demand for artificial lift solutions. Prominent players have recently unveiled a series of discoveries. Notable examples include Talos Energy's Zama field find in Mexico's offshore Block 7 in 2017 and ExxonMobil's billion-barrel discoveries in Guyana in 2018. Such breakthroughs, like Gazprom's Arctic gas discovery and Wintershall Dea's North Sea oil find, demonstrate the industry's vigor in uncovering valuable resources. These discoveries pave the way for substantial, long-term growth opportunities within the artificial lift market.