About 2 million oil wells are in operation worldwide, and more than 1 million wells use some form of Artificial Lift, according to SPE International. In fact, 96% of oil wells in the U.S. require Artificial Lift from the very beginning, according to Research and Markets.
Source: Hart Energy Artificial Lift Techbook 2015
In the U.S., 96% of oil wells require Artificial Lift from the very beginning, according to Research and Markets.
By Ariana Benavidez
Associate Editor
About 2 million oil wells are in operation worldwide, and more than 1 million wells use some form of Artificial Lift, according to SPE International. In fact, 96% of oil wells in the U.S. require Artificial Lift from the very beginning, according to Research and Markets.
About 80% of U.S. oil wells are stripper wells, with a majority of those stripper wells lifted with sucker-rod pumps. "Of the nonstripper, higher volume wells, 27% are rod pumped, 52% are gas lifted, and the remainders are lifted with ESPs [electric submersible pumps], hydraulic pumps and other methods of lift. These statistics indicate the dominance of rod pumping for onshore operations. For offshore and higher-rate wells worldwide, the use of ESPs and gas lift is much higher," according to the Society of Petroleum Engineers.
The Artificial Lift market size is projected to grow at a compound annual growth rate of 9.6% between 2014 and 2019, according to a December 2014 Research and Market report. "The market was dominated by North America in 2013, which is expected to continue its dominance through to 2019. Strong growth has been projected for the Artificial Lift market in the next five years, as the need for better production and increased recovery from mature fields continues to spur demand," the report stated.
Moreover, in April 2015, Research and Markets reported that the global artificial lifr pump market will grow at a compound annual growth rate of 8.95% between 2015 and 2019. "Advances in technologies are the important trend emerging in the market. Incorporation of new technology in Artificial Lift pumps through continuous R&D will help the market to grow in the future," the report said, "Deferment of investment decisions is one key challenge hindering market growth. The price of oil has nearly halved in 2014 leading to reduced revenues and inventory write-off [and] forcing oil exploration companies to reduce and postpone major investment decisions."