Increase in global drilling activity, forecasted increase in oil activity due to pent up oil demand, increasing demand for oil despite omicron, progress in deepwater cost reductions with potential for additional savings, rapidly growing Final Investment Decisions (FIDs) in different basins by Independent oil and gas companies, strengthening offshore drilling, and rig activity are some of the major drivers of the Global Sand Control Solutions Market.
2020 witnessed a deep dip in crude prices following the COVID 19 global restrictions, work from home business models, limited travel, and tourism. However, crude oil demand surged as vaccination rolled out and restrictions eased globally. Despite the crude oil demand, there is a strain on supply(owing to numerous reasons- geopolitical tensions, low investments since years, OPEC's output decisions, natural catastrophes, problems related to workforce, and the like).
The IEA forecasts greater oil production in 2022 and 2023 to profit from the current demand and rising oil prices. Many countries have fossil reserves, and there is a sense of urgency as these nations race to extract oil and gas before the world transitions to renewables. In the midst of such a situation, global oil inventories could rise by 0.5 million barrels per day in 2022 to 0.6 million barrels per day in 2023. The potential increase in inventories forecasts a bullish future for drilling activities, implying growth for sand control solutions.
The problem of sand production is usually encountered in younger, shallower, highly permeable, and high porosity sands. Sand production often leads to reduced well productivity or excessive surface and downhole equipment maintenance. The goal of sand control is to stop sand production while maintaining or maximizing crude oil production. Sand production is a global phenomenon affecting almost all oilfields.
Sand production occurs when the formation stress exceeds formation strength. Sand production occurs when failed rock is mobilized by hydrocarbon flow. Highly unconsolidated formations may produce sand from the outset, whereas declining reservoir pressure results in sand production in other formations. It is often associated with the initiation or onset of water production.
Sand production can result in financial losses, repairs to downhole equipment and service, shutdowns due to maintenance, plugging of wells, wellbores, flow lines, and sometimes shutting down wells. In addition, disposal of produced sand can be costly due to its hazardous nature.
Sand Control Systems
The choice of the sand control system is based on the optimum balance of Risk(Installation and well life), Production(Damage/Skin), and Cost(Capex and Opex). In some high-cost wells or offshore wells, logistics and tolerance for risk can vary, influencing the selection of the Sand control system.
Different sand control solutions are possible based on the mechanism of sand control. Passive sand control systems choke back the sand production. Chemical mechanisms usually involve the injection of chemicals into sandstones to consolidate them. However, the most popular methods are mechanical sand control solutions such as Stand Alone Screens, Sand Screens, Gravel packs, and Frac packs.
Stand-alone screens are the most reliable open hole sand control solutions. However, they are impractical for cased hole wells since they risk impacting flow rate.
A gravel pack is simply a downhole filter designed to prevent the production of unwanted formation sand. The formation sand is held in place by properly sized gravel pack sand that, in turn, is held in place with a properly-sized screen.
A gravel pack is generally accepted as the most successful and widely applicable sand control technique due to the following advantages it offers:
Despite its advantages, there are some drawbacks of gravel packs, namely-
A frac pack is a sand control solution that combines the stimulation advantages of a highly conductive hydraulic fracture with the sand control of a gravel pack to improve productivity in low to moderate permeability, unconsolidated formations. A frack pack is employed almost exclusively in cased hole wells.
A frack pack offers the following advantages:
Some disadvantages of Frack packs are:
Oil discoveries in Ivory Coast, Suriname, Mexico, and other countries globally and the exacerbating global energy crisis are driving offshore oil and gas production where reserves tend to last longer than the conventional wells on land. Due to the long-lasting nature of offshore wells, drilling is bound to improve in the offshore segment.
Latin America Region Analysis
The discovery of nearly 2 billion barrels of recoverable oil resources in offshore Suriname, the discovery of the Stabroek Block with approximately 10 billion barrels of oil reserves in offshore Guyana, the Guyana-Suriname region of South America is bound to be the regional hotspot for oil exploration and production. Moreover, an abundant supply of light, sweet, low sulphur crude makes these oil plays extremely attractive in light of the stringent rules associated with carbon-intensive oil production and the recent IMO 2020 regulation.
The economic recovery of Brazil's ultra-deepwater oil and gas market mostly driven by pre-salt projects highlights Brazil as a major future drilling market. It follows that drilling also drives the need for the future sand control systems market.
Asia-Pacific Region Analysis
South-East Asia is one of the world's fastest-growing economic regions, where energy demand is expected to double over the next 20 years. However, the region's declining oil and gas production leaves it reliant on overseas oil suppliers, jeopardizing national security. In addition, the rising need for electricity across Asia is a significant driver for drilling activity in the region. Natural gas already represents 60% of South-East Asia's power plant needs, and this trend is forecasted to continue, further driving drilling activity. To promote exploration and production in the region, SKK Migas, the government organization that works in upstream activities, has removed traditional fees and has introduced a membership model. It has also embraced a "massive, aggressive, and efficient" policy to boost production in Indonesia.
Indonesia and Malaysia will emerge as key areas in the region.
US Regional Analysis
With the sale of drilling rights in the Gulf of Mexico, with conventional gulf wells having the potential to produce for decades at a stretch, offshore drilling rigs could have a bright outlook in the region. However, Biden's "Build Back Better" Bill would ban Offshore drilling in Florida and increase royalty rates if approved by the Senate. The approval of this Bill has the potential to influence capital spending of upstream oil and gas companies, which cascades to offshore drilling companies.
Europe Regional Analysis
The New Norwegian government has declared that Norway will continue Offshore Oil and Gas exploration. New PM Mr.Store underlined that Norway's current oil licensing system would remain in place and that new acreage will be continued to be offered to the oil industry.
In line with Norway, the UK is set to offer new offshore oil and gas licenses in the future.
Despite its zero emissions by 2050 goal, citing security of supply concerns, the UK will continue to offer licenses for exploration and drilling. With most Western Europe relying on Norway for its energy needs and Russia being the only other major supplier, Norway's decision seems prudent.
In line with the decisions of Norway and the UK, the growth of sand control solutions is a given in the region. However, compared to other regions, the market share might not be as substantiative due to Europe's focus on Renewable energy.
The study covers all the major underlying forces that help the market develop and grow and the factors that constrain the growth.
The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.
Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and functions as a guide for you to analyze the degree of impact.
This report discusses the overview of the market, latest updates, important commercial developments and structural trends, and government policies and regulations.
This section provides an assessment of COVID-19 impact on Sand Control Solutions Market demand.
The report provides Global Sand Control Solutions Market size and demand forecast until 2027, including year-on-year (YoY) market growth rates and CAGR.
The report examines the critical elements of Sand Control Solutions industry supply chain, its structure, and participants
Using Porter's five forces framework, the report covers the assessment of theSand Control Solutions industry's state of competition and profitability.
The report dissects the Global Sand Control Solutions Market into various segments. A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.
Further, market size and demand forecasts will be presented along with various drivers and barriers for individual market segments.
Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for a "bespoke" market segmentation to better align the research report with your requirements.
The report covers detailed profiles of major countries across the world. Each country's analysis covers the current market scenario, market drivers, government policies & regulations, and market outlook.
In addition, market size, demand forecast, and growth rates will be provided for all regions.
Following are the notable countries covered under each region.
North America- United States, Canada, Mexico, and Rest of North America
Europe- Germany, France, United Kingdom (UK), Russia, and Rest of Europe
Asia Pacific- China, India, Japan, South Korea, Australia, Rest of APAC
Rest of the world- Saudi Arabia, Brazil, Nigeria, South Africa, and other countries
This report presents detailed profiles of Key companies in the Sand Control Solutions industry. In general, each company profile includes - company overview, relevant products and services, a financial overview, and recent developments.
The report provides a comprehensive list of notable companies in the global market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.
The study also discusses the strategies adopted by leading players in the industry.
Executive Summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.
The report begins with an Executive Summary chapter and ends with Conclusions and Recommendations.
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1. Executive Summary
2. Research Scope and Methodology
3. Market Analysis
4. Industry Analysis
5. Market Segmentation & Forecast
6. Regional Market Analysis
7. Key Company Profiles
8. Competitive Landscape
9. Conclusions and Recommendations
List of Tables & Figures
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