Impact of COVID-19 on the Sand Control Systems Market
The spread of the COVID-19 pandemic has negatively impacted the global sand control systems market owing to the lockdowns imposed in the majority of the countries across the globe since December 2019. Sand control systems are an integral part of oil & gas production systems. They help eliminate sand production in the wellbore. A sand control system plays a major role in the completion process and enhances the performance and the productivity of the well. Nowadays, most of the oil & gas wells created from unconsolidated sandstones produce sand with reservoir fluids. Challenges related to sand production include the plugging of perforation tunnels, the accumulation in surface separators, the sanding up of production intervals, and the potential failure of downhole and surface equipment due to erosion. Such problems can pose safety concerns and economic risks. The demand for these products has been interrupted due to the temporary shutting down of businesses in recent months. However, several countries have started lifting the lockdowns to restore their economic conditions, which is anticipated to boost the product demand in the coming years.
Crude Oil Production, 2014-2018 (Metric Tons)
There are several techniques for minimizing sand production from wells. The choices range from simple changes in operating practices to expensive completions, such as sand consolidation or gravel packing. The sand control method depends on site-specific conditions, operating practices, and economic considerations. The sand control systems market is growing at a high pace, and this trend is expected to continue during the forecast period. Due to fluctuating prices of crude oil, the global sand control systems market is gaining traction as the major oil-producing companies are increasing production from active oilfields. The global sand control systems market seems to be extremely uneven and competitive owing to the presence of several large and medium-sized players active in the regional markets. The key strategies of the leading players include product launches, acquisitions and expansions, and agreements & partnerships. Strategic partnerships are expected to support the growth and expansion plans of the key players during the forecast period.
Source: B.P. Statistics
Source: Primary Experts, Secondary Sources, and MRFR Analysis