As oil demand fluctuates, more companies are beginning to understand the importance of proper oilfield equipment. As a result, the global market is expected to increase by 3.7 percent annually through 2016, according to research conducted by ReportLinker.
This is due to a number of factors, but is being led by the increasing needs of developing markets. As countries grow, so does their reliance on energy, increasing demand for oil and drilling equipment. Companies are expected to seek out and invest in new, innovative oilfield equipment to combat any new challenges that could result from heightened demand.
However, as the market grows, prices are also expected to increase. A ReportLinker press release indicates that while processes change, the cost of oilfield operation will likely go up. Therefore, equipment providers are expected to adjust their price structure as a way to keep up with an evolving market.
"The discovery of new reserves and the depletion of existing ones has led to new extraction techniques and increased complexity of drilling, raising the costs of production," the release says. "Going forward, technological advancements leading to increased drilling efficiency will serve to constrain costs somewhat, but the necessity of developing new techniques to capitalize on unconventional reserves, particularly shale oil and oil sands, will continue to raise prices."
It is important for businesses to find solutions that enhance the extraction process and offer a strong return on investment by building efficiency and streamlining processes. For example, oilfield producers can implement an artificial lift to ensure that their wells perform at an optimum level and provide maximum return on investment.
Working with an oilfield technology provider can allow oil companies to acquire the best solutions to fit their needs.