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The oilfield degassers market size is forecast to increase by USD 2.66 thousand at a CAGR of 5.4% between 2023 and 2028. The market is experiencing significant growth due to several key drivers. The increase in active rig count and the expansion of deepwater and ultra-deepwater projects are primary factors fueling market growth. Additionally, environmental concerns related to drilling have led to the adoption of degassing technologies to reduce emissions and ensure regulatory compliance. Two main types of degassers, vacuum and atmospheric, are utilized in the oil and gas industry. Vacuum degassers are employed to remove dissolved gases from crude oil, while atmospheric degassers are used to remove free gases from produced fluids. Moreover, the integration of solids control equipment and gas detection systems in degasser units has become essential for safe and efficient operations. Digital technologies, including AI and IoT, are being integrated into mobile degassing devices to optimize operations and improve efficiency. These systems enable the detection and removal of hydrocarbon gases, ensuring the prevention of explosive conditions and maintaining a safe working environment. Furthermore, emergency shutdown and ventilation systems are crucial components of degasser units, ensuring a safe and timely response to potential hazards.
The oil and gas industry relies heavily on drilling fluids to facilitate the extraction process. However, these fluids can contain significant amounts of hydrocarbon gases, including methane, carbon dioxide, and hydrogen sulfide, which can pose safety risks during drilling operations. Oilfield degassers play a crucial role in mitigating these risks by removing these gases from drilling fluids. Hydrostatic pressure is a significant challenge in deep-water and ultra-deep-water drilling, as it can lead to gas bubbles forming in the drilling fluid. These bubbles can result in gas explosions, potentially causing catastrophic damage to equipment and personnel. Degassers are essential in preventing such incidents by removing dissolved gases from the drilling fluid before it is pumped down the wellbore. Methane, carbon dioxide, and hydrogen sulfide are common gases found in drilling fluids. Methane can lead to explosive conditions, while carbon dioxide and hydrogen sulfide can be harmful to human health. Degassers help ensure the safe removal of these gases, reducing the risk of gas explosions and ensuring the safety of drilling personnel. The oil and gas industry's focus on exploration and production activities in onshore and offshore locations has led to an increased demand for oilfield degassers.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD thousand" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The onshore segment is estimated to witness significant growth during the forecast period. The oil and gas industry's onshore exploration and production (E&P) activities have been a significant contributor to the sector's drilling activities due to their lower operational costs and less complex technologies compared to offshore E&P. The onshore segment's growth can be attributed to the increase in unconventional oil and gas production, driven by substantial investments from private players. Unconventional oil and gas production, including shale oil and gas extraction, has emerged as a viable alternative to conventional methods.
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The onshore segment was the largest segment and was valued at USD 6.89 thousand in 2018. This process employs hydraulic fracturing in conjunction with horizontal drilling. In the onshore oilfield, equipment such as solids control equipment and gas detection systems are essential for ensuring safety and efficiency. Vacuum degassers and atmospheric degassers are critical components of this equipment, used to remove dissolved gases from produced fluids. These degassers help prevent the risk of emergency shutdowns caused by gas accumulation and ensure proper ventilation. Hence, such factors are fuelling the growth of this segment during the forecast period.
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North America is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In the North American region, the market experiences significant growth due to the high level of drilling activity. The United States and Canada are major contributors to this market, with a strong focus on oil and gas exploration and production. Onshore drilling is prevalent in this region due to the abundance of oil and gas reserves and lower operational costs. The adoption of advanced technologies, such as horizontal drilling and hydraulic fracturing, has further boosted the market growth. Moreover, the increasing emphasis on well control and ecologically friendly degasser systems is driving the market.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
An increase in active rig count is notably driving market growth. The escalating crude oil prices have instigated oil and gas firms to augment their investments in oil and gas projects. The allure of heightened profits when global oil prices are favorable has encouraged this trend. The ensuing increase in drilling activities necessitates a corresponding rise in demand for drilling rigs.
These degassers are essential in the removal of dissolved gases from drilling mud, primarily Gas-cut mud, during drilling operations. The adoption of advanced drilling technologies has further accentuated the demand for these degassers. In summary, the oil and gas industry's reincreasence, fueled by rising crude oil prices, has led to an increase in drilling activities. Thus, such factors are driving the growth of the market during the forecast period.
Increase in upstream deepwater and ultra-deepwater projects is the key trend in the market. In the oil and gas industry, deepwater and ultra-deeperwater drilling have emerged as significant sources of crude oil and natural gas. However, the high costs and challenges associated with these projects have made them less attractive for exploration and production (E&P) companies, especially during periods of low crude oil prices.
The harsh weather conditions and hydrostatic pressures prevalent in offshore environments necessitate the use of degassers to mitigate the risks of gas explosions from methane, carbon dioxide, and hydrogen sulfide in drilling fluids. The importance of degassers in deep-water and ultra-deep-water drilling projects cannot be overstated, as these projects require an average crude oil price of over USD60/bbl to be profitable. Thus, such trends will shape the growth of the market during the forecast period.
Environmental concerns related to drilling is the major challenge that affects the growth of the market. Upset incidents in the exploration and production (E&P) sector of the oil and gas industry have raised significant concerns, with the Deepwater Horizon explosion and subsequent oil spill in 2010 being a notable example. The environmental repercussions of oil spills or any related hydrocarbon discharges can result in substantial penalties at both local and international levels.
Remote monitoring systems enable real-time tracking of critical parameters, enhancing safety and efficiency. The importance of adhering to stringent safety protocols cannot be overstated, given the potential consequences of non-compliance. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bomcobras: The company offers oilfield degassers in two models named ZLCQ240 with discharging centrifugal type and ZSCQ360 with discharging jet flow type.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The oil and gas industry faces significant challenges in managing hydrostatic pressure and the presence of methane, carbon dioxide, and hydrogen sulfide during drilling operations. These gases can lead to gas explosions, particularly in deep-water and ultra-deep-water drilling. Degassers play a crucial role in mitigating these risks by removing these gases from drilling fluids. Degassers are essential equipment in the oil and gas sector, used in both onshore and offshore drilling. They come in various forms, including vacuum degassers and atmospheric degassers. Vacuum degassers use vacuum pressure to remove gases, while atmospheric degassers rely on the difference in pressure between the fluid and the atmosphere. The oil and gas industry's increasing focus on unconventional resources, such as shale gas, coalbed methane, pre-salt reserves, and the Vaca Muerta formation, has led to an increased demand for degassers. These resources often contain high levels of volatile organic compounds and greenhouse gases, which require effective degassing to ensure safe and efficient drilling and production. Oil prices and natural gas prices have a significant impact on the market.
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Market Scope |
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Report Coverage |
Details |
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Page number |
169 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.4% |
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Market growth 2024-2028 |
USD 2.66 thousand |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.1 |
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Regional analysis |
North America, Middle East and Africa, APAC, Europe, and South America |
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Performing market contribution |
North America at 46% |
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Key countries |
US, China, Russia, Canada, Saudi Arabia, Japan, South Korea, Australia, France, and UAE |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Bomcobras, Derrick Corp., DFE, Elgin Power and Separation Solutions, Fluid Systems Inc., GN Solids Control, KES Energy Equipment Manufacturing Hebei Co. Ltd., NOV Inc., Petropath, Schlumberger Ltd., Shandong Jintan Machinery Equipment Co. Ltd, STEP OILTOOLS, TangShan Dachuan Mechanical Equipment Co. Ltd., The Weir Group Plc, Xi and KOSUN Machinery Co. Ltd., and XiAn TianRui Petroleum Machinery Equipment Co. Ltd. |
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Market dynamics |
Parent market analysis, market report , market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Application
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Opportunity/Restraints
12 Competitive Landscape
13 Competitive Analysis
14 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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