The U.S. BOP testing services market was valued at US$ 261.4 Million in 2020 and is expected to surpass US$ 388.6 Million by 2028, registering a CAGR of 5.1% during the forecast period (2021-2028), according to the U.S. BOP Testing Services Market Report, by Services (Nipple-up Services, Nipple-down Services, Repair and Maintenance Services, BOP Winches and Others, and BOP Testing Services), by Application (Onshore and Offshore), and by Sub Region (Eastern U.S., Southern U.S., and Rest of U.S.), published by Coherent Market Insights.
In the oil and gas industry, nipple-down service is used to disassemble the well-control or pressure-control equipment, such as BOP systems, on the wellhead. Moroever, nipple-down is a process of removing pressure control equipment from the wellhead, which depends on the configuration of wellhead and casing strings. When the blowout preventer is nipple-down, there is only a fluid barrier in the casing annulus. The two-barrier system is not used if the blowout preventers are lifted up to install slips, and to cut off the casing.
Hence, key players are focusing on offering nipple-down services for the purpose of disassembling blowout preventers. For instance, RC Hydraulic Tools & Services Ltd., a North America-based hydraulic tool company, offers various tools such as the Hytorc’s Versa 4, for BOP nipple-down applications. Such factors are expected to facilitate growth of the nipple-down service segment in the U.S. BOP testing services market.
U.S. BOP Testing Services Market - Impact of Coronavirus (Covid-19) Pandemic
Globally, most of the countries are affected by COVID-19 pandemic and have announced lockdown. Due to this, most of the companies are offering work from home option and after office hours people can save most of their time. Due to COVID-19 pandemic, various industries witnessed significant negative shift in their business. Natural gas and crude oil gas are primary raw materials for the production of energy. Due to lockdown imposed by various countries, the demand and price of the crude oil has fallen. For instance, in March 2020, in the U.S., the price of the crude oil had decreased from US$ 61.06 to US$ 23.36. Additionally, all of the countries had banned international and domestic travel, due to this there was huge drop in the consumption of Aviation Turbine Fuel (ATF) across the U.S. All these activities had huge impact on the U.S. BOP testing services market.
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Key Trends and Analysis of the U.S. BOP Testing Services Market:
- Southern U.S. held dominant position in the U.S. BOP testing services market in 2020, and is expected to retain its dominance throughout the forecast period. Favorable business environment and technological advancements are driving growth of the oil and natural gas industry, which in turn is fueling growth of the Southern U.S. BOP testing services market. For instance, according to Houston Chronicle, one of the largest newspapers in the U.S., the oil and natural gas industry employed 880,681 people in 2018, which was a 5% increase in the employment figure since 2017, and Texas accounted for over 352,000 of these jobs (about 40%). Moreover, according to the same source, Texas experienced the largest industry gains in 2018, with the addition of over 27,000 jobs in the oil and natural gas industry, followed by Oklahoma (5,266) and New Mexico with 3,626 jobs. Furthermore, in February 2019, governing authorities of Texas stated that they will continue to work with independent oil and gas producers to strengthen the economy. As a result, government initiatives to support oil and gas producers is expected to boost growth of the Southern U.S. BOP testing services market in the future.
- Rest of U.S sub region is expected to show significant growth over the forecast period. With the help of advance technologies various companies such as Continental Resources, Inc., Whiting Petroleum Corporation, and Hess Corporation arrange activities such as drilling for extraction of oil and gas. In order to avoid overflow of the oil and gases during extraction, BOP testing services are employed.
- Among application, onshore segment held a dominant position in the market in 2020, and is expected to retain its dominance during the forecast period. Some of the main land drilling rig contractors who are involved in drilling operation for oil and gas production in the U.S. are Nabors Industries Ltd., Patterson-UTI Energy Inc., Helmerich & Payne Inc., Precision Drilling Corporation, and Pioneer Energy Services Corp. The onshore oil and gas production in the U.S. is growing steadily. Texas and North Dakota are the largest onshore oil-producing states in the U.S. Moreover, in 2018, the production in onshore formations in Texas was 35,000 bpd and North Dakota was 18,000 bpd.
- Among services, repair and maintenance services segment held a dominant position in the market in 2020, and is expected to retain its dominance during the forecast period. Blowout preventer testing is expensive and plays a vital role in oil and gas drilling operations. To ensure that tools are accurate and functioning as required and the system is in serviceable condition, repair and maintenance services are proven to be very effective. The scope and frequency of repairing, inspections and maintenance depends on various factors which include environmental conditions, equipment age, estimated dynamic loads, and load path component deterioration limits specified by the system manufacturer.
- Major players operating in the U.S. BOP testing services market include National Oilwell Varco, SAMOCO Oil Tools, AXON Energy Services, Baker Hughes (GE Oil & Gas), Schlumberger Limited (Cameron), Weatherford International Plc, B.O.P. Products, LLC, LinRich Solutions, M&M International, BHL INTERNATIONAL, Sunnda Corporation, Worldwide Oilfield Machine, Inc., Packard International, Inc., MidCentral Energy Services, Winch & Wrench, Inc., Pathfinder Pressure Testing, Allegiant Oil Field Service Professionals, Battle Energy Services, Trigger Energy Inc., XPAT, Integrated Equipment, Monahans Nipple-up Oilfield Service, and Greene's Energy Group.
