With the surge in the number of mature oilfields around the world, the demand for pump jacks is growing rapidly, especially in the petroleum industry. A majority of these oilfields have already reached their saturation points and therefore, produce very less oil. As these wells cannot be restarted economically once they are closed down, they are kept alive with the help of pump jacks. These devices enable the extraction of even the last few barrels of oil from these fields.
Moreover, the usage of pump jacks considerably extends the lifespan of these wells by enhancing the pumping efficiency, without augmenting the operational cost. Computer-based technologies are being adopted for monitoring and analyzing the pump systems in real-time rapidly with minimum human involvement. The adoption of these automated technologies for ensuring efficient and smooth oil extraction from mature oilfields is emerging as a major trend. The growing popularity of onshore oil drilling is also propelling the demand for pump jacks.
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As onshore oil drilling has higher cost-effectiveness than offshore oil drilling, it is being increasingly preferred by oil and gas exploration and production companies around the world. Additionally, a large number of aging oil wells are onshore, which is further boosting the requirement for pump jacks. North America is home to numerous mature onshore oil wells, where pump jacks can be utilized extensively for achieving higher operational efficiency and extracting the remaining oil from the wells.
Due to the above-mentioned factors, the sales of pump jacks are soaring all over the world. This is, in turn, fueling the expansion of the global pump jack market. Onshore and offshore oil wells are the major application areas of pump jacks. Between the two, the requirement for pump jacks will rise at a faster rate in onshore oil wells in the coming years, as per the estimates of P&S Intelligence, a market research company based in India.
North America held the largest share in the pump jack market in 2016, and it is also expected to witness the highest CAGR during the forecast period. This is because the region is home to the largest number of mature oil wells and numerous companies offering pump jacks. In addition, to cater to the rising demand for oil, the wells are being used for longer than before, for which utilizing pump jacks is important, as with time, the natural pressure of the well reduces. Apart from the U.S., E&P activities are increasing in Canada, which is driving the demand for pump jacks in the continent.
Hence, as more oil wells mature and the demand for the commodity increases, more pump jacks will be bought by E&P companies around the world.
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