Increasing Production Potential of Mature Oil and Gas Fields

The global well-intervention market is anticipating considerable growth with the rise in demand for maximising the production potential of mature oil and gas fields.

FREMONT, CA: The global well-intervention market is expecting radical growth in the near future, estimated to reach 9.3 billion USD by 2026. Upstream companies are increasing efforts to enhance production from the advanced fields that drive the well-intervention market. The increasing need to maximise the production potential of mature oil and gas fields is also fueling an increase in well-intervention.

Mature fields are a crucial driver in the well-intervention market, which accounts for about 70 per cent of global oil and gas production. The recovery rates–which are 70 per cent for gas and 35 per cent for oil–may decline further due to geological features, resource limitations, or operational inadequacy of old technologies. A mature field is defined by a decline in overall production after primary recovery efforts or recovering easily accessible hydrocarbons. Given that they will be able to meet the increased demand for energy in the future, these wells are far from being a depleting resource. However, the primary challenge with mature fields is that either their oil production is uneconomical or the operator faces technological constraints to recover oil reserves.

Mature fields are usually equipped with old equipment and infrastructure, which leads to potential environmental effects by producing more water than oil. Well-intervention methods enhance the recovery of mature fields and extend their high production periods. New well-intervention technologies allow the production of greater percentages of hydrocarbons economically in mature reservoirs.

Large oil and gas firms have shifted their focus toward developing novel techniques and tools needed to leverage bypassed pay zones in mature reserves rather than drilling new wells, which is costly. They emphasise increased recovery and prolonged life of mature fields and outperforming the natural production levels.

There is a rapid depletion of new fields as a result of the rise in oil and gas production. In due course, this has led to an increase in the number of mature fields. Upstream European companies demand the latest technologies for well intervention operations as more than 60 per cent of the oilfields in Norway, and the UK have matured and need well intervention services to increase the hydrocarbon production in the reservoirs.

Government Regulations Concerning Exploration and Production Activities

Several government regulations and measures regarding oil and gas field development have become stricter and regulatory authorities have re-evaluated the drilling procedure intending to prevent future oil spill incidents. International, national, and state governments and agencies have implemented legislation and regulations to limit greenhouse gas (GHC) emissions and ensure compliance with climate action policies. Thus, changes in government regulations related to greenhouse gases, climate change, and alternative energy sources may impede the rise of oil and natural gas exploration and production companies and further adversely impact the demand for well-intervention services.