Impact of COVID-19 on the Global Well Intervention Market
The COVID-19 pandemic has severely affected the oil & gas sector. In Q1 of 2020, the declaration of COVID-19 as a global pandemic led to strict lockdowns being implemented across several countries worldwide. Government authorities imposed stringent restrictions that compelled the industry players to allow their employees to work remotely. The use of technologies, including advanced electronics and automated machinery during the pandemic, has not only ensured the continuity of businesses but has also enhanced work productivity, supporting the growth of the well intervention market.
Future investments in the energy sector and government initiatives towards energy generation projects are expected to provide growth opportunities for the global well intervention market players. The demand for these services has been hindered temporarily in recent months due to the shutting down of businesses worldwide. However, it is projected to recuperate in the coming months and grow substantially over the forecast timeframe. The fluctuating supply and prices of raw materials have also affected the growth of the global well intervention market. Moreover, in March 2020, the lockdowns imposed to curb the spread of the virus led to the temporary closing of production facilities and offices.
PRODUCTION OF CRUDE OIL IN TOP 5 LEADING COUNTRIES
There is a high probability that the COVID-19 outbreak will have long-term effects on consumer preferences and lifestyles. China is a prominent supplier of raw materials used in the well intervention industry. The increasing conflicts between China and numerous other countries owing to the spread of COVID-19 are likely to hamper the market growth. The global well intervention market in the Middle East & Africa region is expected to recover steadily in the post-lockdown period, with countries such as Saudi Arabia and the UAE witnessing rewarding opportunities to recover from the losses sustained during the COVID-19 pandemic.
Source: Secondary Sources
Source: Primary Experts, Secondary Sources, and MRFR Analysis