Growing Oil & Gas Requirement to Foster the Demand for Hydraulic Workover Unit


 Published Date : 16 Sep 19   |   Views: 114   |  Industry : Machinery & Equipment

In the past, workover was usually carried out using mechanical weights, however, over the past few years, hydraulic workover has been gradually gaining popularity owing to the benefits linked to it. Besides that, the need for oil and gas has been growing across the globe, which has called for the usage of hydraulic workover unit. The governments are increasingly investing in the oil and gas sector to boost the production from developed oil and gas fields. Additionally, advancements in workover technologies are influencing the market growth to a great extent. Adoption of laser technology in workover operations has emerged as a key trend in the market. Companies involved in the oil and gas sector are carrying out intervention operations so that they can modify oil and gas wells in order to attain optimal production. QYR Consulting has lately published a new report titled, “Global Hydraulic Workover Unit Market Report, History and Forecast 2014 – 2025.” According to the report, the global hydraulic workover unit market is predicted to exhibit a healthy CAGR during the forecast period of 6 years, i.e. between 2019 and 2025.

Segmental Analysis

Lower Cost and Favorable Operating Conditions to Boost Onshore Activities

The global market has been segregated on the basis of application as offshore and onshore. Due to ease in the transportation, hydraulic workover unit is suitable for both offshore as well as onshore applications. However, these units find a wide of applications in the onshore activities. Operating conditions of onshore sites are more favorable when compared with offshore sites. Additionally, recovery of global crude oil prices has upsurge the number of onshore oil and gas E&P activities. On the basis of installation, the global hydraulic workover unit market has been segmented into skid workover rigs and trailer mounted workover rigs. 

North America

Regional Analysis

Investments in Oil & Gas Exploration to help North America Lead the Hydraulic Workover Unit Market

North America is anticipated to grab a significant market share in the coming years. The growth is attributed to surge in the investments in shale oil and gas exploration, particularly in the US. In addition, it has been observed that the US government has announced plans to initiate oil and gas exploration and production activities at all offshore regions along the coasts. This initiative is expected to offer growth opportunities for the market in North America. 

Key Players

Key Participants to have a Strong Foothold in the Hydraulic Workover Unit Market

The market participants operating in the global hydraulic workover unit market include UMW Oil & Gas Corporation Berhad, Key Energy Services, Superior Energy Services,
Basic Energy Services, Cudd Energy Services, Precision Drilling Corporation, Halliburton Company, Nabors Industries,
Archer Limited, CEEM FZE, and High Arctic Energy Services. Key players are taking up various strategies such as mergers and acquisitions and technological advancements in order to expand their production and attain greater revenue.

Global CAGR During 2020-2026


Market Dynamics

Rise in the Number of Oil and Gas Explorations to Play a Major Role

Rising investments in infrastructure developments for shale oil and gas is a major driver in the global hydraulic workover unit market. It has been observed that the number of explorations has been rising, particularly in the Arctic and the Middle East region. This may open up new avenues for the hydraulic workover unit market. Also, hydraulic workover units play an essential role during the intervention activities of aging oil and gas wells. This factor may raise the demand for hydraulic workover units in the coming years.

High efficiency, compact design, controlled operation, and versatility are some of the key features of the hydraulic workover unit, which further increases its adoption in both offshore and onshore activities. On the other hand, strict regulations on environment may act as a hurdle in the growth of the hydraulic workover unit market. Oil spills are also expected to hamper the growth during the forecast period. In addition, dearth of skilled workforce as well as long rig-up time may curb the growth of the market in the forthcoming years. Also, transportation issues owing to its heavy weight are also acting as a major challenge.

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