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A Christmas tree is a type of equipment used in petroleum and natural gas extraction. It is an assembly of mechanical components, such as valves, pressure gauges, spools, chokes, and various other fittings. These are installed over well heads and are used to control flow of fluid in extraction pipes and thus, control production of oil or gas. They are also used for water injection, water disposal, gas injection, condensate, and other types of wells. These trees are used for both surface walls and underwater or subsea wells. For surface wells, both manual and automatic valves may be used, while for offshore applications automatic valves are used.
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Growth of global urbanisation, increasing industrialisation, population, growth of automotive industry, airline industry, and increase in construction activity worldwide are some of the major factors behind the growth of the global oil and gas industry and as a result, the global Christmas tree market is also expected to expand. Moreover, the increasing investments and government initiatives worldwide are also expected to boost the growth of the oil and gas industry. The growth of the automotive industry due to the factors of rising population and disposable income around the world is expected to help boost the Christmas tree market. The growth of airline industry and transportation industry worldwide are also important factors driving petroleum demand. However, Christmas tree valves are usually used in newly drilled oil and gas wells because the operational conditions require sufficient pressure for the natural flow of oil and gas. Artificial lift systems are employed in case of lack of natural flow pressure. This is considered a major restraining factor for the global Christmas Tree market. On the other hand, the number of deepwater and ultra-deepwater petroleum drilling projects is increasing and this factor is expected to provide growth opportunities for the global Christmas tree market in the future.
The global christmas tree trends are as follows:
Growth of global oil and gas industry due to rising demand for petroleum products
Growth of global urbanization; increase in industrialization and population; growth of automotive, and airline industries; and increase in construction activities worldwide are some of the major factors behind growth of the global oil & gas industry and as a result, the global Christmas tree market is also expected to expand. Christmas trees are also widely used in local construction, mining, railways industries among other end users. It is also used for environmental and geotechnical sampling and is utilized in construction of sewer lines, in fence post setting, tree planting, and road construction in the construction sector. It is used in sewer construction, as it helps to accurately control diameter of a sewer bore. It is also used in the mining industry to extract coal, gold, and other minerals, owing to its low cost. Artificial lift systems are employed in case of lack of natural flow pressure. This is considered a major restraining factor for growth of the global Christmas tree market. On the other hand, number of deepwater and ultra-deepwater petroleum drilling projects is increasing, and this factor is expected to provide growth opportunities for the global Christmas tree market in the future.
Increase in government initiatives and investments in oil & gas industry
The global oil and gas exploration and production sector is very important to the global economy. Economic experts predict that the global oil production will increase from the current rate of approximately 85 million barrels to 100 million barrels per day in the near future. The emerging economies of the world, especially the BRICs nations including Brazil, Russia, India, and China are expected to drive the demand for oil and gas production due to their high population. The GDP of the global oil and gas industry was estimated to be around $86 trillion in 2019, and the oil and gas drilling sector itself is estimated to contribute approximately 3.8% of the global economy. According to information released by the Department for Promotion of Industry and Internal Trade Policy (DPIIT), Government of India, the petroleum and natural gas sector received foreign direct investment (FDI) of around US$ 7.82 billion between April 2000 and March 2020. As per Union Budget 2019-20, Government of India declared plans to invest US$ 2.86 billion in the upstream oil and gas production by 2022 and US$ 9.97 billion to expand the gas pipeline network across the country. These initiatives and investments by various governmental bodies and petroleum industry companies around the world are expected to help the global oil and gas industry grow and as a result, the global Christmas tree market is also expected to expand.
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