Transparency Market Research delivers key insights on the global early production facility market. In terms of revenue, the global early production facility market is estimated to expand at a CAGR of 2.07% during the forecast period, owing to numerous factors regarding which TMR offers thorough insights and forecasts in its report on the global early production facility market.
The global early production facility market is broadly affected by several factors such as increase in demand of petrochemical products; and growth in access of electricity. Thus, applications of early production facility in ensuring rapid production of new oil and gas is propelling the global early production facility market. Technological advancement has enabled companies to extract more oil and gas by drilling fewer wells. It also helped reduce the environmental impact. For instance, horizontal drilling process allows more contact to a reservoir than a conventional vertical drilling process. Thus, horizontal drilling process enables extraction of more hydrocarbons from a given wellbore (hole drilled for exploration & recovery of natural resources). About six to eight horizontal wells drilled from one location provide the same volume of crude oil as 16 vertical wells. The adoption of IOT in early production facilities allows operators to collect real-time production data, enabling them to appraise reservoir performance on a real-time basis. This appraisal period can be achieved through either an Extended Well Test (EWT) or a longer term EPF, resulting in optimal design of the final permanent facilities, which are to be installed in the field for crude oil & natural gas processing. Thus, ongoing technological advancements and adoption of IoT in oil & gas industry is likely to create new opportunities for early production facility market in the near future.
Early Production Facility Market: Dynamics
Petrochemicals are a set of chemical compounds derived from hydrocarbons, which are extracted from crude oil and natural gas. Petrochemicals are used in a wide range of applications in various industries including cosmetics, electronics, packaging, textiles and toiletries. Wide range of plastics and polymers are made from petrochemicals. Synthetic fibers derived from petrochemicals are used in the manufacture of aerospace parts, wind turbine blades, parts of electric vehicles, etc.
Petrochemicals are the pillar of growth of the crude oil & gas industry. According to the International Energy Agency, Middle East & Africa is anticipated to increase the production of basic chemicals (ammonia and methanol that are derived from natural gas/crude oil) from 70 MMtpy in 2019 to 150 MMtpy by 2050. Asia Pacific is projected to boost the production of petrochemicals from 200 MMtpy in 2019 to nearly 500 MMtpy by 2050. Led by a surge in the demand for petrochemical products in Asia Pacific, China and India are investing significantly in new petrochemical production projects. In order to meet the demand for petrochemicals and mitigate imports, India has announced plans to invest more than US$ 30 Bn to boost the petrochemical capacity in the near future.
Thus, constant rise in the demand for petrochemicals and increase in investments in petrochemical production projects are anticipated to boost the demand for crude oil and natural gas in the near future, thereby propelling investments in the exploration & production of these resources. This, in turn, is expected to fuel the demand for early production facilities during the forecast period.
Early Production Facility Market: Prominent Regions
North America has been a significant region of the global early production facility market since the last few years. According to BP Statistical Review, the region was the second largest producer of oil and the largest producer of gas in the world in 2020. North America achieved this feat through increase in production of shale oil & gas in the U.S. This has resulted in the U.S. becoming a net exporter of crude oil for the first time in a decade. According to Energy Information Administration (EIA), the share of non-conventional gas in total natural gas production in the U.S. is expected to jump from 61% in 2010 to 79% in 2040. In Canada, which is already an exporting country, the share of shale gas in total production is likely be even larger (84%) in 2040. Thus, rise in investment in the oil & gas industry is projected to boost the early production facility market in the near future.