Declining Investor’s Confidence – Restraints the Market
South America’s oil & gas industry has been negatively affected by declining investment. Venezuela and Brazil, which account for nearly 67% of the oil production in South America, have witnessed a decline in the investment, majorly due to reasons, such as political instability, huge debts on major oil & gas companies, and high inflation rates. Venezuela holds an estimated 1.2 trillion barrels of oil reserves, in the Orinoco belt, most of which are heavy in nature and consequently challenging to produce, as a result, the production would require substantial investment. In 2017, Venezuela’s currency Bolivar lost more than 90% of its value, and the GDP dropped by 12%, making oil & gas activities costlier, and negatively affecting the artificial lift systems market in the country. Moreover, the state-owned oil major of Venezuela, PDVSA, owes USD 60 billion in debt and has defaulted on debt repayments. In Brazil, state-owned Oil & Gas Company, Petrobras, has been witnessing a decline since last few years, due to company’s leverage and a shortfall in liquidity, in addition to the “carwash” corruption scandal.
Brazil Oil & Gas activities Driving Latin America Lift Systems 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 2027, 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.
Key Developments in the Market
• October 2017: Dover Artificial Lift acquired PCP Oil Tools of Argentina, the company took over the operations of the local firm in the San Jorge Basin.
• July 2017: Halliburton Company announced the acquisition of Summit ESP, a leading provider of electric submersible pump (ESP) technology and services. The addition of Summit’s artificial lift offerings and industry-leading customer service will strengthen Halliburton’s artificial lift portfolio for its global customers.
Major Players: HALLIBURTON COMPANY, SCHLUMBERGER LIMITED, WEATHERFORD INTERNATIONAL Ltd, GENERAL ELECTRIC Co., BORETS COMPANY LLC, NATIONAL OILWELL VARCO Inc., DOVER ARTIFICIAL LIFT, LLC, NOVOMET OIL SERVICES HOLDING Ltd, OcCIDENTAL PETROLEUM CORPORATION
REASONS TO PURCHASE THIS REPORT
• Identify the drivers, restraints, and opportunity possessed by the Latin American artificial lift systems market with in-depth analysis.
• Analyze the various perspectives of the market with the help of Porter’s five forces analysis.
• Identify the most dominating artificial lift type with forecasted market estimate.
• Country wise analysis of demand forecast for artificial lift systems in the Latin American oil & gas industry with in-depth analysis.
• Identify the latest developments, market shares and strategies employed by the major market players.
• 3 months analyst support, along with the Market Estimate sheet (in excel).
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