Oil And Gas Industry
Onshore reserves are depleting and oil and gas companies are starting to shift their interests towards offshore drilling areas. Offshore drilling is done by drilling a wellbore under the seabed. In this type of drilling, zonal isolation plays a big role in completing the well and also for intervention activity. The market for zonal isolation is experiencing a lot of growth with new technologies like oil & gas sensors being introduced and governments focusing more on this kind of drilling. With these kinds of developments taking shape, the industry landscape for the better.
Zonal isolation markets in the US anticipated to grow
The zonal isolation market in the US is expected to experience growth owing to the high-potential reserves of oil that remain untapped. The region has also had more drilling rigs being established. This coupled by favorable government policy aimed at increasing oil and gas production in the union, which is going to keep influencing the market positively for a projection of five years or so to come. US oil and gas consumption has been on a constant rise for the last decade, further increasing impetus for all parties involved. In the region of Anadarko, new wells registered an increase in oil production by 5 barrels per rig each day for a some time last year.
Ultra-deep wells part of the growth in Saudi Arabia
The trends have changed in this region with oil and gas production moving towards deep and ultra-deep drilling. This type of drilling is expected to boost the offshore zonal isolation market in this oil-rich region. More projects in deep-water drilling and increased production in areas such as Qatif, Manifa and Safaniya have contributed greatly to the total production coming from Saudi Arabia. The face of business will also be changed by the fact that there is more of a demand for oil and oil products in developing economies across the globe. This ready market for the product will spur stakeholders into action increasing production even further.
Mechanical zonal isolation will also enjoy growth owing to the consistent excellent performance of such technologies as oil and gas sensor in various deep-water drilling operations. The technology is constantly stimulating the emergence of unconventional reservoirs which are exploited in new and innovative ways which are making drilling efforts much cheaper and efficient.
Growth in Africa
Within the next few years or so, the region is expected to grow by as much as 9% and over. Investment boosts are one of the major drivers and these are largely flowing from global interests looking to explore the hitherto underused oil reserves. Africa Oil & Power is one company already in the market. The company has partnered with the Ministry of Mineral Resources and Petroleum in Angola in an effort to grow the industry and at a faster pace too. The business outlook in the area will also be improved by the servicing of old oil fields with potential still.
Crude oil prices to dampen the party
With all the new developments going on in zonal isolation, markets low oil prices are going to prove a challenge for all in the industry. Current prices are at a low not experienced before. It is a matter of time before oil prices are back to the normal. The hiccup is not stopping the industry from forging forward where better days are promised.