Published Date : 16 Sep 19 | Views: 98 | Industry : Machinery & Equipment
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.
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 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.
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.