Offshore Drilling Driving Demand for Well Intervention Services

Offshore drilling activities have seen steady growth over the past few years as oil and gas companies focus on developing fields located in deeper waters. This has led to increased demand for well intervention services needed to maintain and repair offshore oil and gas wells. According to a recent market report, the offshore segment currently accounts for over 30% of the global well intervention market and is expected to continue its dominance in the coming years.

With offshore wells located miles away from land in some of the harshest environments, these Well Intervention require regular monitoring and workover jobs that can only be performed by well intervention vessels and ROVs. Factors such as corrosion, equipment failure, and wax and solid deposition over time often necessitate well intervention services in offshore locations. Several mature offshore oilfields are also undergoing enhanced oil recovery projects using techniques like infilling drilling, which is driving the need for well intervention support. Major offshore operators are signing numerous contracts with well intervention service providers to carry out maintenance on their offshore assets on an ongoing basis.

Challenges of Operating in Deeper Waters

Operating in ultra-deepwater geographies poses unique technical challenges for well intervention work. As drilling activity moves to water depths of over 10,000 feet, well intervention jobs require specialized heavy-duty construction modular intervention riser systems and subsea intervention lubricators that can withstand the high pressures at such depths. Providing intervention support also calls for dynamically positioned vessels and ROVs rated for deepwater operations.

Developing intervention solutions suitable for deepwater fields is an area of active research and development among service companies. Some of the new technologies being adopted include compact-designed intervention riser systems, battery-powered intervention packages for subsea wells, and rigless light well intervention systems deployed using ROVs. This technology advancement is important to help operators timely resolve downhole issues in deepwater reservoirs located far offshore.

Growing Requirement for Non-Drilling Intervention Methods

Traditionally, well intervention work mainly involved wireline operations, slickline operations or fishing and cleaning activities. However, the intervention needs of maturing oilfields are becoming more complex today. Operators are looking at non-drilling methods like frac packs, squeeze cementing, zonal isolation using swellable packers, and permanent monitoring systems to maximize production from existing wells over their lifetime.

Non-drilling well intervention techniques minimize health, safety and environmental risks compared to drilling options. They are also more cost-effective for intervening on a single zone versus drilling a new sidetrack well. Many service providers have substantially increased their offerings around non-drilling intervention methods in response to changing customer demands. This has led to the development of various modular intervention systems, deployment and retrieval tools suited for different intervening jobs. Such expansions in non-drilling well intervention services are a major factor contributing to the steady growth being seen across all segments of the industry.

Coiled Tubing Emerging as a Dominant Intervention Method

Within non-drilling intervention techniques, coiled tubing services have emerged as one of the dominant and fastest growing segments. Coiled tubing units can be deployed for a wide range of well intervention applications like fracturing, cleaning, zonal isolation, chemical treatments and pipe recovery. Their continuous-pipe deployment mechanism provides major time and cost advantages compared to jointed pipes. It also eliminates risks involved in running and pulling individual pipe joints.

With coiled tubing, multi-stage plug-and-perf operations or working across severe deviation curves can be accomplished in a single run. This makes them highly suitable for interventions needed in long horizontal wells. Additionally, constant technology upgrades are improving coiled tubing capabilities. New fracturing sleeves, composite coiled tubing, brittleness evaluation tools etc. are enabling coiled tubing to undertake more complex jobs annually. Leading coiled tubing operators are witnessing strong demand especially for their land and offshore light well intervention fleets. Considering the expanding applications and operational benefits, coiled tubing is undoubtedly a well intervention technique of the future.

On the geographical front, the well intervention market in the Americas, primarily North America, is expected to drive much of the future growth. After years of a downturn, drilling and production activities across major shale basins in the US and Canada have rebounded strongly since 2020. This upswing has jumpstarted demand for well interventions needed to maintain, repair and enhance production from existing shale well infrastructure.

Additionally, offshore production assets in the US Gulf of Mexico also require regular intervention work. Recent successes with infill and subsea development projects are adding to ongoing service requirements in the region. Initiatives to reduce offshore platform abandonment through well interventions further present long-term opportunities. Overall factors like increasing well counts, development of unconventional plays and investments in technologies like remote operations are supporting continued expansion of the American well intervention market in the coming years.

Despite volatility in oil prices over the past decade, the well intervention industry has shown resilience underpinned by steady growth drivers. The shift towards offshore and unconventional drilling is translating to long-term contractorships for intervention providers. Ongoing innovations are also expanding the intervention toolkit to address the demanding needs of more difficult assets. As global energy demand and production rise in the post-pandemic economy, the well intervention sector is positioned for sustainable growth led by trends in deepwater development, shale productivity and increasing scope of non-drilling intervention techniques.

Get More Insights - Well Intervention

Get This Report in Japanese Language -  井戸の介入

Get This Report in Korean Language -웰 인터벤션

About Author:

Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups.

(LinkedIn: https://www.linkedin.com/in/vaagisha-singh-8080b91)