Coiled tubing is a common well-intervention method that has been in use since over half a century. It is a type of work over equipment that is hydraulically driven and is routinely used in oil and gas applications. This can be truck mounted or skid mounted. Completion and rope work are some of the work over tasks that can be performed by coiled tubing equipment. This technology involves a coiled tubing that can be both lowered into and withdrawn from a well without the use of a connecting thread. The tubing is generally made of a high strength and low alloy-containing material. Coiled tubing can perform the cyclical lowering activity of the tubing without losing the time of running and puling the tubing since it does not utilize the shackle and pipe connection.
Coiled Tubing Market Outlook
- Global oil prices, which are currently witnessing a sort of slump, are set to recover in the coming quarters. This would result in exploration and production activity picking up resulting in a consequent growth of the coiled tubing market.
- Economic growth in the emerging regions is in an uptick phase meaning it is growing rapidly across sectors. This would result in increased energy requirement to fuel this growth. Further, economic self-sufficiency by reduction of imports is also high on the agenda of these economies. These factors would result in a growth of the coiled tubing market in the region as a result of increased oil & gas activities.
- Widespread extraction from onshore and shallow water reserves over the years has led to depletion of the resources in them. This has led to an increased level of activity in deep water reserves.
Coiled Tubing Market Regional Highlights
- North America held a majority of the market share in value terms in the coiled tubing market. This can be attributed to the rapid activity witnessed in the last few years in the US oil and gas industry.
- Asia Pacific would exhibit the strongest growth over the forecast period from 2020 to 2026 owing to the developing nature of the economies who are seeking to reduce import dependence for their energy requirements thereby increasing domestic production of oil and gas.
- The volatile nature and uncertainty in the geopolitical scenario of some Latin American and Middle Eastern countries would affect the production and transport of petroleum products among others thereby acting as a headwind for the growth of the coiled tubing market in the region.
Coiled Tubing Market Segmental Overview
- Well intervention has been a rather common application of coiled tubing, more so in cases that require fluids to be pumped into the well. Recent technological innovations in coiled tubing has enabled coiled tubing to be used in a larger number of well intervention applications.
- Given the depleting onshore and shallow water resources, the last few years has seen a lot of exploration and production being conducted offshore and even in deep waters where no activity has been carried out before. This would result in a rise in the demand for coiled tubing services over the forecast period.
- Growth of the oil and gas sector over the years driven by rising energy demand from the emerging regions presents bright growth prospects for the coiled tubing market.
Coiled Tubing Market Key Players
The major companies operating in the coiled tubing market include ALTUS INTERVENTION, Baker Hughes, a GE Company LLC, C&J Energy Services, Inc, Halliburton, LEGEND ENERGY, National Energy Services Reunited Corp, Nine Energy Service, Pioneer Energy Services Corp, RPC, Inc, Schlumberger Limited, STEP Energy Services, Superior Energy Services, Inc, TRICAN, and Weatherford among others.
The research and development into updating the current range of products and integrating the newer ones is expected to catch up in a big way in the years to come. This trend would further intensify due to greater adoption in hitherto untapped geographies such as those in the Asia Pacific and Latin America where exploration and production activities are picking up in a big way. Thus, geographic expansion and product & process innovation would be the key focus area for the key players.