Product Code: 61955
The market christmas tree is expected to grow at a CAGR of approximately 7.70% during the forecast period of 2019 - 2024. Factors such as the decline in operating costs and increasing exploitation of unconventional reserves are expected to drive the market studied in the coming years. However, lack of investments in offshore oil & gas sector due to the downturn of the industry in mid-2014 along with increasing production from the United States onshore is expected to hinder the growth of the Christmas tree market, particularly in the offshore sector over the forecast period.
- The onshore sector accounted for the largest share in the market in 2018, with the majority of the demand coming from the countries such as the United States and India.
- A large number of discoveries in the South American countries, such as Guyana and Trinidad and Tobago have made the region into one of the leading regions in terms of discovery and has created ample opportunity for the christmas tree manufacturers.
- North America to witness significant growth during the forecast period with the majority of the demand coming from the US.
Key Market Trends
Onshore Oil & Gas Sector to Dominate the Market
- Onshore oil and gas sector accounts for around 70% of the global crude oil production, led by the Middle East and North America region. The onshore sector has been benefited more from the rise in crude oil price when compared to offshore.
- The United States is leading the current onshore oil and gas activity, with its robust drilling in the shale reserve resulting in a surge in the global oil and gas production. The major reason behind the surge is the declining operational cost in the country's basin, which has made marginal projects economical in low oil price regime.
- The activities in other countries, such as Argentina, Colombia, India, and Indonesia, are being driven by either the recent changes in policies and regulations, government's initiative to increase the domestic production or to address the disinvestment scenario in the industry.
- For example, in Argentina, the government is planning to eliminate gas subsidies by 2022, and increase the prices for upstream producers, in order to attract sufficient investment in production. India is planning to reduce crude oil imports by 10% by 2022, from 2017 level. In addition, the government has made the entry of foreign companies comparatively easy, as per the new licensing policy.
North America to Witness a Significant Growth
- The North America region is expected to witness significant growth over the forecast period, owing to the increasing exploration and production activities in the United States.
- The United States has one of the largest technically recoverable shale gas reserves and the second-largest tight oil reserves in the world. The technological development in the hydraulic fracturing and low breakeven prices have supported the upstream oil and gas activity in the onshore region, resulting in high demand for oilfield equipment, such as christmas tree.
- At the beginning of 2018, the Trump administration announced the opening of 98% of the coastal water for oil and gas exploration and production, which was not allowed under Obama's administration. The announcement is expected to drive the demand for christmas tree in the offshore sector, in the long run.
- Canada is the second-most important region in North America region, accounting for around 23% and 17.5% of crude oil and natural gas produced in the region, as of 2018.
- Western Canada accounts for about 95% of the nation's total production. In the coming years, till 2035, conventional production is expected to remain flat, rising to 1.33 million b/d from 1.32 million b/d in 2017.
- However, the Canadian oil and gas industry faces a lot of challenge from the United States. Tax reforms and loosening of regulatory frameworks by the US President Donald Trump's administration are prompting more and more companies to head south.
- Such factors are expected to result in lower investment in 2018, when compared to 2017, and hinder the increase in the demand for christmas trees in the Canadian market. Currently, the government is working on between 40 and 50 regulatory, policy and legislative issues, and a substantial number of important issues that will have an effect on the nation's competitiveness, and how it does its business.
The global christmas tree market is fragmented. Some of the major companies include TechnipFMC PLC, Baker Hughes a GE Company, Schlumberger Limited, Dril-Quip Inc., and Worldwide Oilfield Machine.
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Table of Contents
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
- 1.4 Study Deliverables
- 1.5 Research Phases
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY
4 MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD billion, till 2024
- 4.3 Global Onshore and Offshore Active Rig Count of Major Countries
- 4.4 Onshore and Offshore CAPEX Forecast in USD billion, till 2024
- 4.5 Offshore CAPEX Forecast in USD billion by Region, till 2024
- 4.6 Brent Crude Oil & Henry Hub Spot Prices Forecast, till 2024
- 4.7 Historic and Production Forecast of Deepwater, Oil Sands and Crude from Deepwater in kb/d, till 2024
- 4.8 Key Upstream Projects for Investment Purposes
- 4.9 Recent Trends and Developments
- 4.10 Government Policies and Regulations
- 4.11 Market Dynamics
- 4.11.1 Drivers
- 4.11.2 Restraints
- 4.12 Supply Chain Analysis
- 4.13 Porter's Five Forces Analysis
- 4.13.1 Bargaining Power of Suppliers
- 4.13.2 Bargaining Power of Consumers
- 4.13.3 Threat of New Entrants
- 4.13.4 Threat of Substitutes Products and Services
- 4.13.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 Type
- 5.1.1 Horizontal Tree
- 5.1.2 Vertical Tree
- 5.2 Location of Deployment
- 5.2.1 Onshore
- 5.2.2 Offshore
- 5.3 Geography
- 5.3.1 North America
- 188.8.131.52 United States
- 184.108.40.206 Canada
- 220.127.116.11 Rest of North America
- 5.3.2 Europe
- 18.104.22.168 United Kingdom
- 22.214.171.124 Norway
- 126.96.36.199 Russia
- 188.8.131.52 Rest of Europe
- 5.3.3 South America
- 184.108.40.206 Brazil
- 220.127.116.11 Argentina
- 18.104.22.168 Colombia
- 22.214.171.124 Rest of South America
- 5.3.4 Asia-Pacific
- 126.96.36.199 China
- 188.8.131.52 India
- 184.108.40.206 Indonesia
- 220.127.116.11 Rest of Asia-Pacific
- 5.3.5 Middle East & Africa
- 18.104.22.168 Saudi Arabia
- 22.214.171.124 United Arab Emirates
- 126.96.36.199 Iran
- 188.8.131.52 Nigeria
- 184.108.40.206 Rest of Middle East & Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
- 6.3 Company Profiles
- 6.3.1 Yantai Jereh Petroleum Equipment & Technologies Co. Ltd
- 6.3.2 Worldwide Oilfield Machine
- 6.3.3 TechnipFMC plc
- 6.3.4 Baker Hughes a GE Company
- 6.3.5 Schlumberger Limited
- 6.3.6 Aker Solutions
- 6.3.7 Dril-Quip Inc.
- 6.3.8 Shengji Group
- 6.3.9 INTERA Ltd
7 MARKET OPPORTUNITIES AND FUTURE TRENDS