Oil & Gas Magnetic Ranging Market size is predicted to reach USD 3 Billion by the end of 2036, expanding around 8% CAGR during the forecast period i.e., 2024-2036. In the year 2023, the industry size of oil and gas magnetic ranging was over USD 234 Million. The growth of this market can be primarily driven by the increasing prices of oil across the globe. The demand for oil & gas magnetic ranging is significantly increasing along with growing need for higher efficiency and productivity in oil extraction fields. In the last three months, Brent crude oil prices have risen by more than 30% and are currently trading at around USD 93 per barrel, the highest level since November 2022.
Support for gravity drainage is expected to be required with a view to increasing the number of advanced fields which will lead to market growth. Market growth is projected to take place over the next few years as a result of high oil production and extensive oil fields in the region. The rise in demand in the oil and gas sector are predicted to boost the market growth of oil & gas magnetic ranging in the projected time period.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~8% |
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Base Year Market Size (2023) |
~USD 234 Million |
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Forecast Year Market Size (2036) |
~USD 3 Billion |
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Regional Scope |
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Application (Onshore, Offshore)
In terms of application, the onshore segment is poised to dominate the global oil & gas magnetic ranging market by registering a revenue share of 60% by the end of 2036. Magnetic ranging is used for a variety of oilfield applications, including blowout relief well positioning, steam-assisted gravity drainage, heavy oil applications, and planned well-to-well connections. Simple oil depletion is causing the oil and gas industry to switch to other options such as heavy oil and asphalt. Heavy hydrocarbon production requires dewatering assistance, increasing the need for magnetic ranging. Although global heavy oil production decreased to 11.6 million barrels per day in 2019 due to an increase in upcoming deepwater projects, horizontal drilling, and CBM projects, the magnetic ranging market is expected to grow significantly.
Technology (Rotating Magnetic Ranging, Active Magnetic Ranging, Passive Magnetic Ranging)
Based on technology, the active magnetic ranging segment in the oil & gas magnetic ranging market is set to hold the largest revenue share during the expected period. The growth can be ascribed to the account of increasing integration in oil & and recovery techniques. EOR techniques are being used to extract more oil from mature fields. These techniques often require the precise placement of injection and production wells that can be facilitated by AMR. Such as AMR is used in steam-assisted gravity drainage projects to ensure that the steam injector and producer wells are placed at the optimal distance from each other.
Our in-depth analysis of the global market includes the following segments:
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Technology |
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Application |
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North American Forecast
The oil & gas magnetic ranging market in the North America region is set to hold the largest revenue share of 35% by the end of 2036. The United States is one of the largest producers of crude oil and natural gas, accounting for approximately 18% and 23% of global production, respectively, in 2019. 8,390 uncompleted wells have already been drilled and new projects are expected to come online within the forecast period. Canada's oil reserves are the third largest in the world, 96% of which are oil sands reserves. The sand oil available here is a dense oil and has a high content of sand particles. Therefore, steam-assisted gravity drainage is increasing in such fields and requires efficient magnetic ranging results. In addition, North America is dominant in the magnetic range oil and gas market due to its huge amounts of recoverable shale gas as well as tight oil reserves worldwide. In the forecast period, this trend is projected to be maintained and further drive the market growth in this region.
European Market Statistics
The oil & gas magnetic ranging market in the Europe region is anticipated to grow substantially by the end of the prediction period. It can be explained by the presence of a high number of oil and gas production facilities in these regions. In view of its extensive pipeline network and its robust oil and gas exploration activities, the UK is a major market contributor. Furthermore, technological advancements are making magnetic ranging tools more accurate, reliable, and affordable. This is making the technology more attractive to oil and gas operators. The oil and gas sector in Europe is facing increasing scrutiny from environmental regulators. Magnetic ranging technology can help to reduce the environmental impact of oil and gas operations by improving well placement and reducing the risk of spills and leaks.
Author Credits: Dhruv Bhatia
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