Pune, India, April 2020, MRFR Press Release/- Market Research Future has published a Cooked Research Report on the Global Downhole Cables Market.
Downhole cables are used extensively in the oil & gas industry as their unique construction of downhole cables allows them to be used in harsh environments. These cables are used mainly for data transmission. Generally, these cables find applications in oil wells, pipelines, and underwater areas where they are used to drive centrifugal pumps.
The increasing exploration & production of oil and gas and technical developments in drilling activities are expected to drive the market for downhole cables during the forecast period. According to the BP Statistical Review of World Energy 2019, the global oil production grew from 92,502 thousand barrel per day (TBPD) in 2017 to 94,718 TBPD in 2018; the global natural gas production grew from 3,677.7 billion cubic meter (BCM) in 2017 to 3,867.9 BCM in 2018. The growth in production of oil and gas can be attributed to the improving global economic conditions. There has been a dependence on natural gas for electricity generation by the electricity generation companies worldwide due to its higher output and lower emissions than coal and diesel-powered plants. Also, as per the same report, the use of natural gas for electricity generation grew from 5,952.8 Terawatt-hour (TWh) in 2017 to 6,182.8 TWh in 2018. The production is expected to grow during the forecast period. In line with the increase in production of natural gas, the increase in demand for oil and gas has led to an increase in E&P of oil and gas, globally. Many oil & gas companies such as Schlumberger Limited (US) and Halliburton (US) are focusing on E&P of oil and gas across the world. For instance, in October 2017, Schlumberger along with Torxen Energy (Canada) signed an agreement with Cenovus Energy Inc. (Canada) to purchase Palliser Block in Canada for carrying out E&P of oil and gas in Canada. Moreover, in August 2019, Halliburton (US) signed a contract with Woodside (Australia) for drilling and completion services of offshore SNE Field, located in Senegal, Africa for E&P of oil and gas. Such developments are expected to increase in the demand for downhole cables for data monitoring and powering downhole equipment in drilling activities.
Moreover, drilling activities in the oil & gas industry are used in various applications, including oil and gas extraction, well monitoring, and reservoir analysis. Technological advancements in drilling activities provide several benefits such as less drilling cost and growing extraction of oil and gas. Various technological advancements including the integration of Internet of Things (IoT), data analysis tools, data collection equipment, and real-time well data are employed in the processing of oil and gas by the oil & gas companies. The data acquired from the specific oil and gas drilling activities can be accessed remotely in real time due to the advancements in communication technology. Furthermore, the hardware used in the oil wells have also been developed substantially, leading to a longer life and greater versatility of the equipment. For instance, in May 2017, Schlumberger Limited (US) launched SpectraSphere, a fluid mapping drilling service, which enables real-time fluid mapping by delivering critical fluid properties, such as fluid typing, fluid composition, fluid fractions and gas/oil ratio while drilling, in order to reduce operational costs and the risks associated during fluid analysis. Such factors are expected to drive the growth of the global downhole cables market during the forecast period.
The global market for downhole cables is segmented based on type, installation, application, and region. By type, the global market is segmented as tubing encapsulated cable, fiber optic cable, electrical submersible pump cable, and others. By installation, the global market is segmented as onshore and offshore. By application, the global market is segmented oil & gas production, data collection, well monitoring, powering downhole equipment, instrumentation & control, and pressure sensing.
Drivers: Downhole Cables Market
Market Research Analysis
In terms of region, the market is segmented as Europe, Asia-Pacific, North America, the Middle East & Africa, and South America. North America dominates the global downhole cables market. The growth in increasing per capita energy consumption and exploration and production (E&P) of oil and gas are expected to drive the downhole cables market in the region.
According to the BP Statistical Review of World Energy Report, 2019, the primary per capita energy consumption in North America increased by 1.9% from 235.3 Gigajoules per capita (GJ/Capita) in 2017 to 239.8 GJ/Capita in 2018 of the regions. In addition to this, according to the data of Baker Hughes International Rig Count, 2019, the rig count in North America increased to 1,223 rig counts in 2018 from 1,082 in 2017. The increase in extraction & production of oil and gas surges the demand of downhole cables as downhole cables are used for the extraction of oil and gas in various applications such as reservoir monitoring, powering downhole equipment, and oil and gas production. According to the Annual Energy Outlook 2019, the US is expected to become a net energy exporter by the year 2020 owing to the rise in the production of oil and gas in the country. Moreover, as per the report, crude oil production is expected to reach 14.0 million, barrels per day (b/d) by the year 2040. As per a report published by the Canadian Association of Petroleum Producers in June 2019, the crude oil production in the country is expected to increase by 1.44% from 1.27 million bpd to 5.86 million bpd by the end of 2035. Moreover, in October 2018, Royal Dutch Shell Plc invested USD 25–30 billion for the extraction of liquefied natural gas in western Canada. Such factors are expected to increase the demand for downhole cables between 2019 and 2025.
Scope of the Report
This study provides an overview of the global downhole cables market, tracking four market segments across five geographic regions. The report studies key players, providing a four-year annual trend analysis that highlights market size, and share for North America, Europe, Asia-Pacific, Middle East, and South America. The report also provides a forecast, focusing on the market opportunities for the next five years for each region. The scope of the study segments the global downhole cables market by type, installation, application, and region.
The Key Industry Participants of the Global Market for Downhole Cables include Nexans (France), Eland Cables (UK), W. L. Gore & Associates, Inc. (US), NKT A/S (Denmark), Belden Inc. (US), Schlumberger Limited (US), WireCo WorldGroup Inc (US), Halliburton (US), GEO Pressure Systems Inc (Canada) Fujikura Ltd (Japan), Galaxy Wire & Cable, Inc. (US), Marmon Holdings, Inc (US), TE Connectivity (Switzerland), ABB (Switzerland), Prysmian Group (Italy).