Impact of COVID-19 on the Well Completion MarketThe spread of the COVID-19 pandemic has negatively impacted the well completion market owing to the lockdowns imposed in the majority of the countries across the globe since December 2019. Well completion includes the steps taken to convert a drilled well into a producing one. These steps involve cementing, gravel packing, casing, perforating, and installing a production tree. Well completion is a vital process in the field development activity. The economic success of any well development project depends majorly on how the well is completed. Well completion defines the process of deeming a well, ready for commercial operation. The well starts producing fluids normally after well completion has been deployed successfully. The main function served by the well completion process is connecting the wellbore and the reservoir mechanically. The well completion process is carried out with specific equipment and tools, which include coiled tubing, packers, completion fluids, manifolds, wellheads, and blowout preventers. 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)
The oil industry has struggled to survive the downfall in oil prices post-April 2014. The stabilization in oil prices due to balanced oil supply and demand for oil, coupled with other macroeconomic factors, is helping the oil industry to increase the number of new projects. Besides, the discovery and drilling projects have exhibited an increasing need for oilfield service providers. The well completion service providers are gaining huge opportunities from the recovered oil prices and the continuous increase in drilling activities from the newly discovered oilfields. The well completion service providers are, thereby, expected to experience continual growth during the forecast period. The well completion market is driven by factors such as increased exploration and drilling activities, recovery of oil prices, and the rising demand for oilfield services. The increasing discoveries of new oilfields are fueling the growth of the well completion market. Besides, the field development projects, which started a few years ago, will require services and equipment for the completion of wells by installing wellheads on the top of cased wells. For instance, Ghana’s Jubilee oilfield was set to start production in 2019 and is in its last phase of the field development process.
Source: B.P. Statistics
Source: Primary Experts, Secondary Sources and MRFR Analysis