Pump Jack Market to Display Healthy Growth During Forecast Period

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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