The U.S. Energy Information Administration (EIA) states that Organisation for Economic Co-operation and Development (OECD) countries and non-OECD countries produced 30.71 million barrels per day and 63.48 million barrels per day of crude oil, respectively, in 2020. Furthermore, the EIA estimates that non-OCED countries and OECD countries consumed 50.40 million barrels per day and 42.02 million barrels per day, respectively, of crude oil in 2020. Additionally, the organization states that global production and consumption of crude oil stood at 94.19 million barrels per day and 92.42 million barrels per day, respectively, in 2020.
Further, Our World in Data, a project of the Global Change Data Lab, estimates that gas production in the U.S. and Russia surged from 8,359 Terawatt-hours (TWh) in 2018 to 9,209 TWh in 2019 and 6,691 TWh in 2018 to 6,790 TWh to 2019, respectively. The increasing production and consumption of oil and gas are expected to drive the centralizers and float equipment market at a CAGR of 6.3% during the forecast period (2019–2024). According to P&S Intelligence, the market revenue will grow from $991.6 million in 2018 to $1,439.3 million by 2024.
Oil and gas companies use centralizers to keep the cement sheath around the pipes in oil fields uniform. ‘Centralizer’ refers to the casing tools that are used as an effective seal between the casing and wellbore in oil and gas wells. Additionally, float equipment is used to reduce the strain on the derrick and offer a landing platform for top and bottom cementing plugs. Moreover, the equipment also serves as a back pressure valve to prevent cement from flowing back into the inner diameter of the well casing.
The application segment of the centralizers and float equipment market is bifurcated into onshore and offshore. Under this segment, the onshore category accounted for the larger share in 2018, on account of the rising exploration and production (E&P) activities in onshore oil and gas fields. Whereas, the offshore category is expected to demonstrate the faster growth throughout the forecast period, owing to the increasing number of newly discovered offshore fields. In addition, the booming demand for well completion equipment will support the growth of this category in the upcoming years.
Mold-on, rigid, semi-rigid, and bow-string (including slip-on, one-piece, non-welded, and hinged welded) centralizers and float equipment, including top and bottom plugs, float shoes, guide shoes, and float collars, are used in onshore and offshore oil and gas wells. With the surging E&P activities around the globe, Halliburton Company, Summit Casing Equipment, National Oilwell Varco Inc., Weatherford International plc, Centek Group, Ray Oil Tool Company, NeOz Energy, Puyang Zhongshi Group Co. Limited (PYSZ), Downhole Products, and Oilmec Drilling Equipments Pvt. Ltd. are manufacturing these products in abundance.
Globally, the North American region held the largest share in the centralizers and float equipment market in 2018. The dominance of this region can be ascribed to the increasing oil and gas exploration activities and mounting investments in them in the U.S. and Canada. For instance, the EIA states that crude oil production in the U.S. increased from 9,773 thousand barrels per day in February 2021 to 11,160 thousand barrels per day in March 2021 and further, to 11,230 thousand barrels per day in April 2021.
Therefore, the rising oil and gas production and consumption will facilitate the adoption of centralizers and float equipment in the coming years.