Impact of COVID-19 on the Global Blowout Preventer Market
A blowout preventer is a mechanical device or a specialized valve which is used to control, seal, and monitor oil & gas wells to prevent a blowout, an uncontrolled release of natural gas or crude oil from a well. The rising demand for oil & gas has led to an upsurge in the exploration of unconventional sources for oil & gas drilling. Besides, the increase in onshore drilling activities, especially in the Middle East region, is responsible for the growth of the market. However, the oil & gas industry has been drastically impacted due to the rapid spread of the COVID-19 pandemic. The decrease in the prices and demand for oil & gas during the pandemic has drastically affected the oil & gas industry and thus the demand for blowout preventers. The decrease in the supply and demand for oil & gas owing to the COVID-19 pandemic is expected to decrease exploration and drilling activities, which in turn, is likely to cause a decline in the installation of blowout prevents, hindering the growth of the market. Only the major projects are expected to move forward post the pandemic. Besides, the halted drilling activities at offshore and onshore sites during the pandemic, owing to the lockdowns imposed by government authorities to prevent the spread of COVID-19, have significantly slowed down the growth of the blowout preventers market.
PROJECTED CHANGE IN THE GLOBAL DEMAND FOR OIL DUE TO COVID-19, 2020 (BY QUARTER)
The resumption of onshore drilling activities after the lockdown period is expected to raise the demand for blowout preventers. The Middle East dominates the global blowout preventer market. It is expected to continue its domination over the forecast period owing to the increasing number of offshore and onshore drilling activities. The Asia-Pacific has also registered high growth in the market.
Source: Secondary Sources
Source: Primary Experts, Secondary Sources, and MRFR Analysis