Latin America Artificial Lift System Market - Growth, Trends, and Forecasts (2020-2025)

The Latin America artificial lift system market is expected to grow at a CAGR of more than 2.78% during the forecast period of 2020-2025. Factors such as the increasing population, efforts to improve living standards and urbanization are driving the demand for energy. This tremendous demand for oil is outpacing the addition of new reserves. The number and size of discoveries of reserves are also decreasing. This has resulted in an increased focus on enhancing productivity and the efficiency of old reservoirs. Artificial lifts are gaining importance to explore oil from the matured oil reservoirs. However, with the advancement in smart water flooding and various IOR technology are expected to hinder the market growth during the forecast period.

• An electric submersible pump (ESP) is preferred as the most suitable choice for usage in large oil wells that reached or crossed their peak oil production phase. The availability of abundant resources, coupled with an increase in investments, is expected to boost the offshore electric submersible pump market.
• As the number of new exploration fields is increasing, these fields are expected to provide significant opportunities for the artificial lift system market in the near future.
• In Latin America, Brazil is expected to be among the major countries driving the market for artificial lift systems market.
• The majority of the new fields, as well as the older fields, require an artificial lift of some form for production. Hence, all the major companies are regularly adopting artificial lift in almost all wells.

Key Market Trends

Electric Submersible Pump (ESP) Expected to Dominate the Artificial Lift Systems Market

• Most of the oil & gas fields operating have been in production for a few decades. They are either matured or at the end of their production life.
• ESPs are preferred as the most suitable choices for usage in large oil wells that reached or crossed their peak oil production phase and require further developments to enhance the production rates.
• An onshore electric submersible pump is projected to witness decent growth in demand, owing to an increasing number of mature fields in the sector.
• Growing focus toward heavy oil reservoirs and increasing production, coupled with the requirement of ESP systems in shale reservoirs, is further expected to drive the business growth and artificial lift market.

Brazil to Drive the Market

• In Latin America, Brazil is expected to be among the major countries driving the market for artificial lift systems market.
• The country is estimated to reach 5 million oil barrels per day by 2026, which is likely to make the country one of the biggest source of global crude supplies outside OPEC.
• Moreover, in 2017, Shell, one of the biggest oil-producing company in Brazil, announced that it would be investing USD 2 billion, related to oil & gas activities,
• In the country each year between 2017 and 2020, the amount excludes the cost of assets acquired by the company in the pre-salt auction, in October 2017.
• Supported by increasing investments and liberal regulatory environment, Brazil is expected to be among the major countries increasing the demand for artificial lift during the forecast period.

Competitive Landscape

The Latin America artificial lift system market is partially fragmented. Some of the key players in this market include Baker Hughes Company, National-Oilwell Varco, Inc., Halliburton Company, Schlumberger Limited, Novomet Group.

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