It is estimated that by 2040 the global oil demand is going to be 104 million barrels per day by 2040 and major part of it will come from North American region. However in North American region the capital investments in oil explorations have slowed except for few bright spots. These are Canadian oil sands and new explorations in Chuchki sea region. Hydraulic fracturing or Fracking technique has been used extensively to extract shale oil in USA and from the oil sands in Canada.
Artificial lift is an essential equipment for oil production in North American region. This is due to the peculiar feature found in oil fields where the oil pressure drops shortly after it is drilled. So an artificial lift is required to raise the oil from the reservoir. Currently about 45.55% of total artificial lifts operate in North American region itself. After showing continuous growth, the market for the artificial lifts had quite a jolt in 2015. Led by the shale oil boom, the onshore oil producers have been in pushing the artificial lifts market. However following some developments the sector has been found gasping for air. It was due to the fall in oil prices from $100 level to $40 that new capital investments have been reduced by the oil producers. The 11 week long strike at US oil refineries in 2015 also sent a negative message to the oil producers. However on the bright side, Royal Dutch Shell has been given permission by USA to start oil exploration in Chuchki sea region. The estimation is that the oil sands exploration and development activity is going $84 billion for Canadian economy in the next 25 years. So more oil production activity translates to higher demand for artificial lifts.
Artificial Lift Market in North America
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