Downhole Fishing Equipment Market Outlook 2022-2035

The global downhole fishing equipment market is estimated to surpass USD 2.51 billion by the end of 2035, growing at a CAGR of 5.7% during the forecast period i.e., 2023-2035. In the year 2022, the industry size of downhole fishing equipment was around USD 1.21 billion. The need for downhole fishing gear is driven by the large projects related to the drilling activities. In 2023, there are plans by a private company from Mexico to drill eight exploration wells on Area 1 which covers three fields in the Amca and Mishiton basins as well as Tecoalli, moreover, it has recently installed a floating production storage and unloading unit that simplifies its operations.

Moreover, older or more antiquated infrastructure may be more susceptible to unanticipated issues including equipment failure or wellbore obstructions. Downhole fishing equipment become essential for mitigating these risks and ensuring safe and efficient operations. In addition to impairing the oil and gas industry's capacity to satisfy the downhole fishing equipment market growing demand, this also raises the possibility of an ecological catastrophe due to oil leaks and other operational problems. Globally maintaining the effectiveness of oil and gas activities requires downhole fishing equipment. They keep manufacturing moving forward and reduce downtime.

Downhole Fishing Equipment Sector: Growth Drivers and Challenges

Growth Drivers

Increasing Technological Advancements: The downhole fishing equipment market has been impacted by technological developments. The efficacy and efficiency of these instruments have increased thanks to advancements in automation, materials, and sensors. In order to improve the effectiveness of interventions, these services offer real-time footage, dimension, temperature, pressure, and velocity data during operations. It reduces the need for several runs and highlights the advantages of good imaging, fewer runs, and more success in downhill operations.

Increasing Number of New Development, Launches and Partnerships among Market Players: Increasing number of new development, product launches and partnerships among the market players is estimated to boost the downhole fishing equipment market expansion in the forecast period. As an instance, Axis' downhole division announced in July 2022 the introduction of drilling motors intended for use on coil tubular and stick pipe. Their fishing tool specialists provide round-the-clock support, supported by decades of experience, to handle a wide range of downhole problems. Its 1.69" to 3.5" OD downhole drilling motors are examined both before and after installation to ensure that the motors fulfill original equipment manufacturer (OEM) requirements.

Challenges

Damage to Downhole Fishing Equipment: Downhole fishing equipment, such as specialized tools and implements used in oil and gas drilling operations, can be expensive to produce and purchase. When this equipment is damaged during drilling, it requires costly replacement, which can put a strain on drilling companies' budgets. Additionally, equipment damage can pose safety risks to employees and the environment. Damaged tools can malfunction, causing accidents and potentially hindering future drilling or production operations.

Fluctuating Oil Prices: Crude oil market volatility has increased significantly in recent years due to frequent clashes in the Middle East, the Russia-Ukraine conflict and other regions. China depends on imported crude oil to maintain high-quality economic growth, and the volatility of the global crude oil market has increased the need to assess the impact of oil price fluctuations on the economy of China. Although studies have shown that crude oil market fluctuations do not significantly affect short-term economic growth, they also show that oil price fluctuations clearly affect long-term economic growth term. Volatility in the global oil industry is discouraging investments in deep-hole mining operations and hindering the growth of the global bottom fishing tackle market.

Complexities associated with Downhole Fishing equipment is Set to Hamper the Downhole Fishing Equipment Market Share in the Upcoming Future.

Downhole Fishing Equipment Segmentation

Offering (Solution, Services)

Downhole fishing equipment market from the solution segment is anticipated to capture the highest revenue by the end of 2035. The market offers a comprehensive range of solutions to recover lost equipment, debris or stuck pipes in oil and gas wells, ensuring smooth drilling operations by reducing downtime operations and costly interventions. The downhole fishing tool line includes downhole fishing, milling, cleaning and cutting tools, waste collectors, jerk assemblies, pipe and casing patches, accessory tools and others to meet every requirement customer demand. Many players in the market offer integrated fishing solutions that combine tools, technology and services. They provide a one-stop shop for well intervention needs, ensuring seamless operations.

Deployment (Onshore, Offshore)

In terms of deployment, the onshore segment in the downhole fishing equipment market is set to capture the highest revenue growing at a largest CAGR over the forecast period. However, the offshore segment is set to hold a significant CAGR in the forecast period and grow substantially. When drilling offshore, only one platform is used, which can be fixed or mobile. Offshore drilling costs are higher than onshore drilling. Fixed platforms are more expensive than mobile platforms. Most production facilities are located on the coast, near offshore drilling platforms. Offshore operations often require more durable and rugged tools due to harsh conditions. Currently, most offshore oil and gas leasing and development occurs in the central and western Gulf of Mexico, with thousands of rigs operating at depths of up to 10,000 feet or more. Additionally, in 2021, federal Gulf of Mexico offshore oil and gas production accounted for about 15% of U.S. crude oil production and about 2% of U.S. dry natural gas production.

Downhole Fishing Equipment Industry - Regional Synopsis

North America Market Forecasts

The North American downhole fishing equipment market is predicted to cross over USD 1.09 billion by the end of 2035 expanding at a CAGR of 6.1% during the forecast period. The demand for downhole fishing equipment in North America is driven by the growing need for efficient drilling operations. The North American oil drilling industry saw a surge in activity after the pandemic began, as demand for crude oil returned to pre-Covid levels. North America is expected to see significant investments in well intervention infrastructure. Following the boom in US shale oil and natural gas production, the country has focused on building new intervention wells to meet growing demand for crude oil and natural gas. According to an energy report, by 2027, North America is expected to account for 64% of all potential completed oil and gas wells. Additionally, according to World Oil, US well production is expected to increase 8.2% in 2023, reaching 20,655 wells. Drilling footage is expected to grow at a slightly higher rate, reaching 289 million feet in 2023, an increase of 8.7%.

Rest of World Market Statistics

The downhole fishing equipment market for rest of world is anticipated to account for a CAGR of 5.5% in the forecast period. The rest of the world includes Europe, Asia-Pacific countries, Latin American countries except Mexico, the Middle East and Africa. The Asia-Pacific region is seeing an increase in the number of exploration drilling projects. Additionally, as of December 2022, there were 197 platforms operating in the Asia-Pacific region, of which 116 were onshore, excluding operations in China. In the APAC region, there are 63 onshore platforms operating in India, 18 in Australia and 26 in Indonesia. An increase in the number of land-based rigs often leads to higher demand for bottom fishing tools.

Companies Dominating the Downhole Fishing Equipment Market

• Shandong Saigao Group Corporation
  • Company Overview
  • Business Strategy
  • Key Product Offerings
  • Financial Performance
  • Key Performance Indicators
  • Risk Analysis
  • Recent Development
  • Regional Presence
  • SWOT Analysis
• Tobitem DownHole Solutions
• Innovex
• DOSCO Co Ltd.
• Wenzel Downhole Tools
• SLB
• Coil Solutions, Inc.
• Halliburton Company
• Baker Hughes Company
• NOV Inc.

Recent Developments

September 4, 2023: Venture Global LNG announces long-term expansion plan to expand LNG export capacity from 70 million tonnes per annum (MTPA) to over 100 MTPA. To support this effort, Venture Global and Baker Hughes have signed an Enhanced Major Equipment Supply Agreement to provide additional liquefaction transmission systems and islanding systems for Venture Global's future LNG export projects. With Venture Global CEO Mike Sabel and Baker Hughes Chairman and CEO Lorenzo Simonelli in attendance, the expansion deal was announced on the sidelines of Gastech in Singapore.