LONDON–(BUSINESS WIRE)–Technavio analysts expect the global oil and gas fishing tools market for 2015-2019 to reach USD 3.8 billion, growing at a CAGR of over 4%.
Fishing tools are employed for fishing the stray equipment (also known as fish or junk) from the bottom of an oil well. The fish can be broken components of the drill string, bit breaks, or even a pipe or tool fallen from the rig floor. These tools are specially crafted with respect to the specific fish type or specific function. They are screwed to the fishing string, which is similar to the drill string, and lowered into the well.
Technavio’s lead analysts for energy research have identified the following four factors that will drive the global oil and gas fishing tools market:
- Increased demand for oil and gas worldwide
- Rise in unconventional oil and gas resources
- Increase in downhole data efficiency
- Increase in oil and gas drilling activities
Increased demand for oil and gas worldwide
Increased demand for oil and gas is one of the major drivers in the global oil and gas fishing tools market. Expansion of oil and gas exploration and drilling activities is expected to stimulate the growth of the market in the near future. The growing demand for oil and gas will drive large investment in state-of-the-art technology to increase the efficiency of fishing tools, ensuring continuity in drilling and well completion activities.
Rise in unconventional oil and gas resources
Governments and oil industries worldwide are shifting their focus toward unconventional oil and gas resources because of the decline in production and exploration of conventional oil reserves. Unconventional sources of oil and gas are as follows:
• Tight oil (produced from low-permeability limestone, carbonates, and siltstones)
• Shale gas (natural gas locked in fine-grained, organic rich rock)
• CBM (natural gas locked in coal)
• Shale oil
• Oil shale
“Oil and gas from unconventional sources requires advanced fishing tools. The share of oil and gas from unconventional resources is expected to increase significantly over the next decade which will positively impact the market for fishing tools,” says Vishu Rai, lead research analyst at Technavio for oil and gas research.
Countries such as Argentina and China are increasingly developing infrastructure in order to uphold the commercial feasibility of unconventional oil and gas such as shale gas and tight oil. Other countries such as Algeria, Poland, Australia, Colombia, Russia, and Mexico are in the early stages of shale exploration.
Increase in downhole data efficiency
With advances in logging techniques and equipment coupled with the development of sophisticated downhole sensor systems, the degree of accuracy of downhole data has increased to a great extent.
Acoustic-based LWD techniques have facilitated the availability of real-time data, which has reduced the uncertainty related to downhole drilling conditions and fish position and type. This has enabled the use of appropriate downhole drilling and fishing tools, specific to the condition of the well and characteristics of the fish.
According to Vishu, “Increased downhole data efficiency is a major driver for the global oil and gas fishing tools market because it enables appropriate use of fishing tools of specific configuration.”
Increase in oil and gas drilling activities
The increase in the oil and gas drilling activities worldwide is one of the major drivers in the global oil and gas fishing tools market. According to the International Energy Agency, the global demand for energy is expected to increase from 2,000 mtoe in 2010 to 16,800 mtoe by 2030. Approximately 90% of this increased demand is expected to come from China and India.
The growing demand for energy has resulted in the shift of focus to unexplored reservoirs. By tapping these unexplored resources, the production levels can be significantly increased, which can bridge the gap between the demand and supply of energy. This is expected to propel the growth of the oil and gas fishing tools market during the forecast period.
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