Perforating Gun Market will Grow Rapidly in Near Future

Perforating guns are commonly used in the oil and gas industry to create holes in the wellbore casing, allowing the hydrocarbons to flow through and reach the surface. The perforating gun market growth is driven by the increasing demand for oil and gas. The growth of shale gas exploration and production is also a major factor contributing to the growth of the perforating gun market.

The global perforating gun market is expected to grow from an estimated USD 1,103 million in 2022 to USD 1,448 million by 2027, at a CAGR of 5.6% during the forecast period.

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The players operating in the oil & gas industry are focusing on making discoveries as some of the existing fields may create challenges in producing hydrocarbons at an economical rate and require plug and abandonment. Major oil & gas companies have been making extensive discoveries in the onshore and offshore regions. According to the BP Statistical Review of 2020, the world still had unexplored 1,733.9 billion barrels of proven oil reserves by the end of 2019. Such reserves are creating opportunities for well drilling activities followed by production activities, which is expected to create demand for perforation gun services.

As per International Energy Agency (IEA) World Energy Outlook, the unconventional oil production is projected to increase from 1.8 mb/d in 2008 to 7.4 mb/d by 2030. By 2035, the world's unconventional oil production is expected to account for 15.3% of the world's total oil production. Hence, the increasing production of unconventional oil & gas paves way for extensive exploration and production activities, which ultimately propels the demand for perforating guns across the exploration sites.

The majority of shale reserves are based in North America, with the US dominating the regional market, and in some parts of Europe and Asia. According to the International Energy Agency (IEA), shale production in the US alone is expected to cross 100 million barrels per day. According to the US Energy Information Administration (EIA), the US oil production from seven major shale formations witnessed a rise of about 29,000 barrels per day (bpd) in January 2020, which is ~9.14 million barrels per day of shale oil production. The increasing shale oil and gas production from the North Dakota basin, Montana’s Bakken formations, and Permian basin, and the rising shale developments are responsible for the shale boom in the US, making it the largest oil-producing country in the world, ahead of Saudi Arabia and Russia. In addition, the Vaca Meurta shale basin in Argentina is one of the largest shale reservoirs in the world. Argentina has 23 trillion cubic meter shale gas reserves and 27 billion barrels of shale oil.