NEW YORK, Oct. 15, 2024 /PRNewswire/ -- Report on how AI is driving market transformation - The Liner Hanger Systems Market size is estimated to grow by USD 561.2 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 3.27% during the forecast period. growth in liquid fuel consumption is driving market growth, with a trend towards increase in deepwater and ultra-deepwater exploration. However, cessation of world bank funding for E and P activities poses a challenge - Key market players include Allamon Tool Co Inc., Baker Hughes Co., BOTIL Oil Tools India Pvt. Ltd., DEW Wartungs und Reparatur GmbH, Dril Quip Inc., Halliburton Co., Innovex, Maximus Completion Systems, NCS Multistage Holdings Inc, NOV Inc., Packers Plus Energy Services Inc., Peak Completion Technologies Inc., Saga-PCE Pte. Ltd., SAZ Oilfield Services Pte. Ltd., Schlumberger Ltd., TANGENTOG EQUIPMENT AND SUPPLY PVT. Ltd., Tianjin Elegant Technology Co. Ltd., Weatherford International Plc, Well Innovation AS, and Wellcare Oil Tools Pvt. Ltd..

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Key Market Trends Fueling Growth

The global offshore oil and gas industry is witnessing a shift in focus towards deepwater and ultra-deepwater resources due to the presence of significant untapped reserves in these areas. According to the US Energy Information Administration (EIA), global offshore deepwater oil production is projected to increase by 2.7 mbpd between 2020 and 2040. This trend is driven by the recovery in global crude oil prices, which has made deepwater projects more economically viable. As a result, oil and gas companies are increasing their exploration and production (E&P) activities in regions such as the Gulf of Mexico and Brazil. In response to this growing demand, market vendors are introducing specialized liner hanger systems for deepwater and ultra-deepwater projects. For instance, Halliburton's XtremeGrip deepwater liner hanger system set a record for the longest installed expandable liner hanger system in the world, at a depth of 30,924 feet in the Gulf of Mexico. Similarly, Schlumberger's COLOSSUS liner hanger system supports well integrity enhancement and is designed for deepwater E&P activities. Well'aster, Weatherford's deepwater system containing a liner hanger, was deployed in the Black Sea at 16,213 feet. These advancements in liner hanger technology and the increasing number of deepwater and ultra-deepwater projects support the growth of the global liner hanger systems market during the forecast period. According to the International Energy Agency (IEA), Brazil is a primary location for offshore oil and gas investments, with annual capital expenditure expected to reach USD60 billion by 2040. Combined investments in the Gulf of Mexico are projected to increase to approximately USD20 billion per year by the mid-2020s and to more than USD30 billion by 2040. With crude oil prices stabilizing and companies gradually resuming offshore operations, the future of deepwater and ultra-deepwater projects is expected to be bright. 

The Liner Hanger Systems market encompasses mechanical components like slips, used in casing strings during drilling operations. These systems securely hold the liner in place within the wellbore. Liner hangers are essential for both onshore and offshore projects, including offshore exploration and production activities. Mechanical liner hangers and expandable liner hangers are popular types. Hydraulic fracturing and horizontal/directional drilling in reservoir formations have boosted demand. Liner hangers are used in rigs drilling for crude oil and liquid fuels. With the shift towards low-carbon and clean energy fuels, climate risk financing and insurance solutions are increasingly important. Deepwater and ultra-deepwater exploration continue driving market growth. Liner hangers are key production equipment in petroleum projects. They are used in various well types, such as three-high and three-low wells. Durable materials ensure longevity in harsh drilling conditions. Hydraulic liner hangers facilitate running tools and liners, while liners-top packers seal the wellbore. 

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Market Challenges

• The World Bank Group's decision to cease new investments in upstream oil and gas projects after 2019, except under special circumstances, is expected to impact the E&P activities and the global upstream oil and gas market, including the liner hanger systems market. This move aligns with the World Bank's goal to reduce CO2 emissions, as oil use contributes more to greenhouse gas emissions compared to renewable energy sources. To promote clean energy adoption, the World Bank plans to offer incentives and subsidies for low-carbon fuel projects. Additionally, the World Bank is collaborating with international institutions, countries, and the International Trade Union Confederation to establish the InsuResilience Global Partnership, focusing on climate risk finance and insurance solutions in developing countries. This shift towards clean energy may hinder the growth of the upstream oil and gas industry and the liner hanger systems market during the forecast period.
• The Liner Hanger Systems Market faces unique challenges in the offshore oil and gas industry. In upstream offshore exploration, producing petroleum products from three-high and three-low wells requires durable materials for liner hangers. Hangers, such as hydraulic liner hangers, must withstand the demands of horizontal, directional, and vertical wellbores. Offshore projects present challenges like fluid migration and multizone wells. Liner-top packers, polished bore receptacles, setting tools, and running tools must be resilient and compatible with high-strength materials like steel and aluminum, as well as advanced materials like high-strength alloys, composite materials, and polymers. Offshore activities, including well completions, interventions, and abandonment operations, require liner hangers that can resist wear and corrosion in shallow waters. These challenges necessitate continuous innovation and improvement in liner hanger systems to ensure safe, efficient, and cost-effective operations.

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Segment Overview

This liner hanger systems market report extensively covers market segmentation by

1. Application 
• 1.1 Onshore
• 1.2 Offshore
2. Geography 
• 2.1 North America
• 2.2 APAC
• 2.3 Middle East and Africa
• 2.4 Europe
• 2.5 South America

1.1 Onshore- The onshore oil and gas industry has seen significant growth due to advancements in technology and increasing energy demand. Major adopters of onshore oil and gas explorations include the US, Canada, Russia, and countries in the Middle East. APAC, Africa, and Europe are the largest contributors to onshore drilling, with China being the largest contributor in the APAC region. The increasing popularity of onshore projects is due to their lower costs compared to offshore projects. Volatility in crude oil prices and the rise of unconventional exploration and production activities, such as shale oil and gas, pose challenges and opportunities for the industry. In response, countries are investing in onshore crude oil exploration and production to increase production and ensure energy security. The redevelopment of mature oil wells and the adoption of hydraulic fracturing for shale gas production are key drivers for the liner hanger systems market in the onshore segment. For instance, Gazprom Neft is investing in a new hydrocracking plant as part of its refinery modernization, and Daelim RUS LLC will deliver the necessary services. The US, as the largest producer of shale oil and gas, is leading the trend towards unconventional production methods, which is expected to continue driving the onshore oil and gas equipment market and, subsequently, the global liner hanger systems market.

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Research Analysis

Liner hangers are essential components in oilfield drilling, used to support casing strings during drilling operations in both onshore and offshore environments. These systems consist of slips, running tools, setting tools, and various other components such as liner-top packers, polished bore receptacles, and high-strength materials like steel and aluminum. In drilling operations, the liner hanger system is lowered into the wellbore and engaged with the casing string. Once the liner is set, it provides support for the production activities that follow, including hydraulic fracturing and the extraction of crude oil and liquid fuels. Offshore exploration and deep-water projects require specialized liner hanger systems, including those for horizontal drilling and high-pressure reservoir formations. These systems must be reliable, able to withstand the unique challenges of offshore drilling and production. Liner hangers play a critical role in ensuring the integrity of the wellbore and the safety of drilling and production activities. They are an essential component of the oilfield drilling process, from the initial drilling operations to the final production of crude oil and liquid fuels.

Market Research Overview

Liner hangers are mechanical components used in drilling operations for securing casing strings in wellbores during both onshore and offshore exploration and production activities. They come in various types such as mechanical liner hangers, expandable liner hangers, and conventional liner hangers. Liner hangers play a crucial role in drilling operations, including horizontal drilling, directional drilling, and hydraulic fracturing, in reservoir formations like deep-water and ultra-deepwater exploration. These systems consist of slips, hanger, running tool, liner-top packer, polished bore receptacle, and setting tool, made of durable materials like steel, aluminum, rubber, and advanced materials such as high-strength alloys, composite materials, and polymers. They provide resistance to wear and fluid migration, ensuring wellbore integrity and efficient production of crude oil and liquid fuels. Liner hangers are essential in offshore projects, particularly in three-high wells and three-low wells, and are used in well completions, interventions, and abandonment operations. They are also employed in onshore drilling, cementing, and petroleum product upstream exploration. With the shift towards low-carbon fuels and clean energy fuels, the demand for liner hangers in climate risk financing and insurance solutions is increasing.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Onshore
• Offshore
• Geography
• North America
• APAC
• Middle East And Africa
• Europe
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio