Coiled Tubing Market Analysis

Coiled Tubing Market Analysis

Well intervention is an operation that involves a set of activities designed to enhance the production of a particular oil field. The advancements in drilling technologies along with the growing penetration of mature oil wells are augmenting the market demand for coiled tubing in well intervention.
 

In addition, it is also used to replace the failed mechanical equipment by changing the flow dynamics and production profile of the running well. This will further drive coiled tubing market growth over the forecast period.
 

The technology minimizes the possibility of potential damages to the system by adjusting various downhole equipment. Hence, coiled tubing is becoming the preferred option for operators to enhance operational efficiency, which will foster its market statistics. In the coming years, shifting trends from onshore to deep-water exploration activities will further stimulate the coiled tubing market trends.
 

Maturing onshore reserves have compelled the operators to explore new opportunities across various offshore locations. Increasing investments to expand the production from deep & ultra-deep seabeds will drive the global coiled tubing market demand.
 

The CT systems deployed across offshore locations comprise hydraulically powered workover units, which will offer significant cost savings when compared to conventional workover rigs. This will enhance the operational efficiency of wellbore, thereby boosting the global market demand and raising the industry statistics.
 

The exploration of ultra-deep water is complex & costly when compared to onshore operations. As a result, well operators are investing in new technologies, which are more economical and hold a high efficiency index. Therefore, coiled tubing on account of its ability to effectively work on live wells under extreme conditions is witnessing significant growth across ultra-deep locations. The increasing number of new ultra-deep projects, mainly across North America and Europe, will create numerous market opportunities for global coiled tubing manufacturers.
 

North America and Europe collectively accounted for over 60% of market share in 2019. Growing E&P investments coupled with new advancements in the existing drilling technologies will enhance the coiled tubing market share substantially. The demand for endless tubing across well intervention in the Middle East will witness significant growth on account of the growing penetration of mature oil wells.
 

However, Asia Pacific & Latin America CT market outlook will expand substantially on account of the continuously growing regional population, leading to high energy requirements. The government focus on reducing import dependency will further propel the product deployment across various wellheads.
 

North America led by the U.S. holds prominent market opportunities for coiled tubing manufacturers across the globe. Operators across the region are highly focused on enhancing their well output, in turn raising the CT deployment significantly. Abundant availability of hydrocarbon resources with the rising demand for shale gas and tight oil will fuel the North America coiled tubing market growth over the forecast timeline.
 

In the last decade, new shale discoveries across the U.S. have attracted various companies to exploit untapped unconventional resources. The federal government is also making significant efforts by implementing various funding policies to encourage new investments.
 

For instance, in 2019, the U.S. Department of Energy announced an investment of USD 44.5 million on 12 unconventional R&D projects. This will have a positive impact in the U.S. reeled tubing market. Moreover, the rising focus on the development of advanced drilling rigs will further influence the coiled tubing market demand in the country.