Artificial Lift System Industry: – Smart Strategies of the Research and Development Process

Innovative products and technologies in artificial systems have been gaining a lot of traction with strategies such as partnerships, launches, and new investments.

The artificial lift system market holds promising growth potential, with crude oil prices fluctuating drastically the oil extraction companies are forced to optimize their spending. The fluctuations in oil prices affected the profitability of the company. Hence, in order to ensure the financial targets in position, the companies are cutting their operation costs, of which drilling is an integral part.

The global artificial lift system market is estimated to reach $34.56 billion by 2022.

The market for artificial lifts is primarily driven by increased demand for energy sources and maturing oil fields. Other factors that drive the market are increasing deep/ ultra-deep offshore oil production activities. However, some of the restraints associated with its business attractiveness are a higher project cost as compared to conventional systems and a lack of skilled workforces. This results in a limited impact due to the ability to increase extraction by artificial lift systems. Additionally, rising subsea drilling activities should contribute to artificial lift adoption in a greater sense.

The commonly used technologies in the market are rod lift, ESP, PCP, plunger, gas lift, and others. The other technologies include hydraulic lift and foam lift. Among these types, ESPs account for a larger market size by value due to higher operating volume, fair gas handling and motor-driven operation which is convenient to install. Its market is expected to reach about $9,940 million in size by 2022 growing at CAGR of 6.4%. This rapid growth is supplemented by its excellent corrosion resistance, higher operating temperature, and operation based on well's natural energy.

The Middle East and Africa constitute a majority of the oil fields in the world. The countries in this region such as Saudi Arabia, Syria, and Brazil hold plenty of oil reserves. With an increase in the consumption of oil, the discoveries of new reserves are ongoing. The exploration activities in this region are building a conducive environment for the demand of artificial lifts.

As per Eswara Prasad, Team Lead, Chemicals & Materials in Allied Market Research. "North America, the market leader for artificial lift system in 2015, is expected to get surpassed by LAMEA by 2022, as oil reserves in Saudi Arabia have reached the maturity stage and companies are implementing enhanced oil recovery techniques to extract oil to commence deep drilling in order increase productivity."