The growing number of mature onshore oil
fields, rising energy consumption, and increasing exploration and production
activities are some of the reasons behind the growth of the pump jack market.
In 2016, the market generated a revenue of more than $2.7 billion, and it is
expected to attain a size of $3.8 billion by 2023, advancing at a 5.0% CAGR
during the forecast period (2017–2023). Pump jacks are used to extract crude
oil, when there is not sufficient pressure in the wells to push the oil to the
surface.
Based on application, the pump jack
market is bifurcated into onshore and offshore drilling. Of these, during the
historical period (2013–2016), the onshore bifurcation led the market in terms
of revenue, and it is predicted to continue leading it during the 2017–2023
period. This is attributed to the fact that onshore oil drilling is less
expensive compared to offshore drilling. A large number of mature wells are in
onshore oil fields; thus, the sale of pump jacks is expected to be higher for these.
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Geographically, during 2013–2016, North America led the pump jack market in terms of revenue, and it is predicted to maintain its dominance during the forecast period. This is attributed to the increasing energy consumption and oil production activities here. Furthermore, due to the growing concern toward the over-utilization of unconventional energy resources, the need for mature field redevelopment is increasing, in turn, leading to the heavy adoption of pump jacks in the continent. The mature field redevelopment prospects display improved return on investment.
To meet the surging energy demand, the
exploration of oil and gas fields is on the rise. According to environmental
impact assessment, the global energy consumption is projected to accelerate from
575.0 quadrillion Btu in 2015 to 736.0 quadrillion Btu by 2040, showing a surge
of 28.0%. Non-Organization for Economic Cooperation Development (OECD) regions
are expected to contribute heavily in energy consumption. For instance, energy
use in transportation is predicted to grow by around 30.0% between 2015 and
2040, while industrial sector is projected to account for more than 50.0% of
the total energy used in 2040.
Furthermore, the population is expected to
accelerate by approximately 1.5 billion people to reach around 8.8 billion by
2025, which, in turn, would result in the growing consumption of energy. In
addition, according to an OECD report, the global oil usage is predicted to
reach 99.8 million barrel per day in 2040 from 85.1 million barrels per day,
showing an increase of 17.0%. Thus, the surging demand for oil is expected to
escalate the use of pump jacks, thereby leading to the pump jack market growth.
Stripper wells and mature oilfields both
install pump jacks, owing to their better crude oil extraction capabilities,
which is further fueling the growth of the pump jack market. Pump jacks
are employed to optimize oil extraction from low-pressure oilfields and also to
extract untapped oil in the wells. The main objective behind the use of pump
jacks is to attain the maximum efficiency of the well, so that the demand for
oil can be fulfilled and also operational efficiency can be reached as these
pumps also offer low operational costs.
Hence, the growing demand for energy and
rising exploration and production activities are expected to augment the market
growth.
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