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Artificial Lift Techbook 2016

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ARTIFICIAL LIFT TECHBOOK: OVERVIEW 2 | May 2016 | T he oil feld has been hurt by low oil and gas prices over the last two years; artifcial lift, however, is one of the better performing sectors. Artifcial lift is a $10 billion segment, or 4%, of the $280 billion oilfeld equipment and service industry. Spears & Associates has been measuring oilfeld markets since 1965. The global artifcial lift mar- ket's record year, 2014, saw $15.6 billion in sales, up from $4.5 billion a decade earlier. But constantly declining oil prices during 2015 and a dour outlook for the current year will set up a 2016 market of just $10.4 billion. Two-thirds of the artifcial lift market is found in North America and about half of the North American artifcial lift market is driven by new well drilling. With new well drilling in the U.S. falling more than 50% since the 2014 peak, one-quarter of the demand for lift equipment disappeared in 2015. Impact of low oil and gas prices on the artifcial lift market is felt but not as drastically compared to other market sectors. Global Artifcial Lift Market Growth Slows By Richard Spears Spears & Associates Inc. The need for artifcial lift systems like this Bakken-based beam pump continues in spite of low oil prices. (Photo by Stephen Collector, courtesy of Oil and Gas Investor)

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