The oil & gas industry is considered to be one of the most important industries across the world. The industry has become technologically more advanced at present. Downhole tractor is an important component that is widely used in the oil & gas industry. Different types of downhole tractors, such as mechanical downhole tractor, electrical downhole tractor, and hydraulic downhole tractor, are used in the oil & gas industry to perform various activities with more efficiency and effectively. E-line downhole tractor is the most widely used type of downhole tractors.
COVID-19 scenario analysis:
- The demand for downhole tractor is expected to decrease in 2020 due to low demand from different industries, such as manufacturing and oil & gas, owing to the lockdown imposed by governments of many countries.
- COVID-19 pandemic has shut-down the production of various products in the downhole tractor industry, owing to the prolonged lockdown in major global countries. This has hampered the growth of the downhole tractor market significantly from the last few months and is likely to continue during 2020.
- COVID-19 has already affected the sales of equipment and machinery in the first quarter of 2020 and is likely to cause a negative impact on the market growth throughout the year.
- The major demand for equipment and machinery was previously noticed from giant manufacturing countries, including the U.S., Germany, Italy, the UK, and China, which have been badly affected by the spread of coronavirus, thereby halting the demand for equipment and machinery.
- Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on their cash reserves. Equipment and machinery companies can afford a full lockdown only for a few months, after which the players would have to modify their investment plans.
- Equipment and machinery manufacturers must focus to protect their workforce, operations, and supply chains to respond toward immediate crises and find new ways of working after COVID-19 infection cases start to decrease.
Top impacting factors: Market scenario analysis, trends, drivers, and impact analysis
Some of the challenges faced during the completion activities and drilling are removal of debris, measurement while drilling (MWD), and wire line logging. To perform these operations more effectively and efficiently, downhole tractor has been invented, which is now used in the oil & gas industry. There are three types of downnhole tractors, electrically driven, mechanically driven, and coiled tubing downhole tractors. Downhole tractors are designed to be fitted in standard electric line tool string. Additional factors, such as more space and personnel, equipment, and additional costs, can be avoided by using downhole tractor. Therefore, the downnhole tractor market is expected to grow during the forecast period. The Middle East & Africa is one of the leading regions where oil & gas is produced in large extent. Therefore, this region is considered as one of the most important regions for the growth of the downhole tractor market.
Unconventional reservoir production has developed over the years. These reservoirs require special recovery operations, such as drilling of horizontal and directional wells, through which more surface contact with the wall can be accessed. This is expected to increase the production rates by using downhole tractors. Therefore, this could be the key driving factor for the growth of the downhole tractor market.
In offshore production activities, electric line downhole tractor is widely used as it can be used for various purposes, such as delivery of electro hydraulic and mechanical tools, which are used for well intervention and wellbore cleaning. The demand for electric line downhole tractor is expected to rise during forecast period die to the variety of applications it offers.
New product launch to boost the market
Many companies in the construction market are developing and introducing new products in the market. These new products are technologically more advanced than the previous range of their products. These new products are more efficient and effective in their performance and are widely used in the industry. For example, in August 2018, Schlumberger, one of the leading manufacturers of onshore and offshore drilling machines, launched wireline tractor system known as MaxTRAC downhole wireline system. This system is designed wherein data related to the well, such as depth and diameter, can be accurately measured. By using this system, the downhole tractor can be easily controlled.
Key restraining factor for the growth of the downhole tractor market
The prices of crude oil are not stable, which lead to hesitation among investors before investing in the downhole tractor market. This can affect the downhole tractor market negatively. In addition, new technologies, such as wireline systems, have been used in downhole tractors for efficient and smooth working. This resulted in increase in cost of the machine. Therefore, this could restrain many companies from using downhole tractors.
Key benefits of the report:
- This study presents the analytical depiction of the downhole tractor market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the downhole tractor market share.
- The current market is quantitatively analyzed to highlight the market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed downhole tractor market analysis based on competitive intensity and how the competition will take shape in coming years.
Downhole Tractor Market Report Highlights
By Product Type
By Well Type
Key Market Players
Global Technology & Innovation, Schlumberger, Halliburton, Xi'an Well-sun Electronic Technology, Weatherford, Downhole Petroleum Services & Supply Company, Welltec, Aker Well Services, BHGE Sercel