Europe's coiled tubing market is expected to grow at a CAGR of over 3% during the forecast period of 2020-2025. Factor such as an increasing number of mature fields and maintenance of the existing wells are expected to drive the Europe coiled tubing market. However, the high cost of maintenance and replacement of coiled tubing units is likely to restrain the Europe coiled tubing market.
- Europe coiled tubing market is expected to be dominated by well intervention segment because of various jobs that are performed by coiled tubing in well intervention method.
- Increasing deepwater exploration and production in the North Sea is likely to be creating several opportunities for the Europe coiled tubing market in the future.
- The United Kingdom held a significant market share in 2018, and due to its several upcoming projects is likely to see a significant market growth during the forecast period.
Key Market Trends
Well Intervention Segment Expected to Dominate the Market
- Well intervention is the method used for increasing the productivity of the well. Well intervention through coiled tubing is generally done for various applications such as well cleaning, perforation, acidization, hydro-fracture, sand control, fishing, and others. Well intervention through coiled tubing is very cheaper and reliable than other methods such as through drill pipe, tubing, or wireline.
- Major companies in the world, rather than investing in new wells, are now spending more on increasing the performance of existing wells, by getting optimum production from the wells. For attaining required production, companies have to majorly rely on coiled tubing for well maintenance.
- The demand for coiled tubing is likely to increase due to an increasing number of projects in unconventional oil and gas, in which coiled tubing is widely used for hydro-fracturing and acidization to increase the permeability of the formation.
- In North Sea, coiled tubing units are also being used for the perforating high temperature and high pressure wells with temperature crossing over 300 degree-Fahrenheit (F) and having bottom hole pressure over 10000 psi.
- Therefore, owing to the above points, well intervention is likely to dominate the Europe coiled tubing market during the forecast period.
United Kingdom Expected to Experience Significant Growth
- In 2019, the United Kingdom held a significant share in oil and gas production in Europe. The oil and gas market directly affects the Europe coil tubing market as it is the largest sector in which coil tubing is being widely used. The United Kingdom, in 2018, produced 50.8 million tons of oil, thus contributing approximately 7% of the total oil production in Europe, which was higher than what is produced in 2017, 46.6 million tons of oil.
- In 2019, BP plc completed its Culzean project in the North Sea, and it is expected to produce 200000 barrel oil equivalent per day of hydrocarbon by 2020. The completion of the project and its stimulation to enhance well performance is likely to adds to the significant growth of the United Kingdom in the Europe coil tubing market.
- In December 2019, UK Oil and Gas (UKOG) conducted a successful reservoir test on Horse Hill Oilfield in the United Kingdom. After the test company now intends to accelerate the start of up to 25 years of continuous long-term production from the field. The company also planned to drill several directional wells that can be drilled either using conventional drill pipes or by coil tubing units.
- Hence, owing to the above points, United Kingdom is expected to see significant growth in the Europe coiled tubing market during the forecast period.
The Europe Coiled Tubing market is moderately consolidated. Some of key players in this market include Royal IHC, GOES GmbH, Stimline AS, Tala Offshore AS, and Stewart & Stevenson.
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