Impact of COVID-19 on the Global Downhole Tools Market
The spread of COVID-19 has negatively impacted the global downhole tools market owing to the lockdowns imposed in the majority of the countries across the globe since December 2019. Downhole tools are pieces of oilfield equipment that are used during well drilling, completion, and intervention, or well workover activities and help in optimizing the production levels and maintaining a continuous flow from a reservoir. Various downhole tools are used to conduct well activities such as wireline tools & equipment, slickline tools & equipment, drilling jars, fishing tools, pushing tools, drill pipes, tubular tools, centralizers, etc.
Downhole tools are used in the bottom hole assembly for workover operations and well completions. The production of energy using downhole tools has slowed down due to the coronavirus lockdown. However, the demand for downhole tools is anticipated to recover in the coming months and grow significantly in the long term.
Global Oil Production Forecast
The global petroleum supply and consumption have been disrupted as a result of COVID-19, and the associated mitigation efforts have been significant. When countries around the world enforced lockdowns in the first quarter, and the early second quarter, road and air travel fell sharply. Hence, global liquid fuel consumption fell far more quickly than production did. The sharpest declines occurred in the second quarter of 2020 when the oil consumption-weighted GDP was estimated to have declined by 10.3% as compared to the second quarter of 2019. According to EIA estimates, the global oil inventories went up by almost 1.3 billion barrels from the beginning of 2020 to May end. Slowly, the market is recovering. It is estimated that consumption would reach 101.1 billion barrels by the end of 2021, which would still be 16.7 billion barrels less than Q4 2019 values, but better as compared to 2020 Q4 predictions.
Source: International Energy Agency
Source: Primary Experts, Secondary Sources, and MRFR Analysis