Wednesday, 23 September 2015

Heightened Safety Concerns Propel Global Blowout Preventer Market


The global blowout preventer market is growing at a CAGR of 4.22% from 2014 to 2022. The market was worth US$26.096 billion in 2013 and will be valued at US$38.5833 billion by 2022.Blowout preventers (or BOP) are large valve stacks that are installed over fluid lines. Their primary purpose is to control, monitor, and seal the leakage of fluids coming from wells. They are always designed for redundancy, because they are maintained as the last line of defense against well leakage.

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Safety is the Prime Cause of Global Blowout Preventer Market Growth

Over the past decade, there have occurred multiple oil spills, the most notable of which is the Deepwater-Horizon oil spill, followed by the Exxon Valdez spill. The Deepwater-Horizon oil spill, also known as the Macondo blowout, happened on April 20, 2010, in the Gulf of Mexico, on a project owned by BP. 210 million gallons of oil was lost in the world’s biggest blowout, which lasted for 87 days.

Accidents like these are the prime reason for the demand from the global blowout preventer market. A BOP needs to be stable and secure enough to handle any kind of blowout that occurs in its line. They are also required to control any irregular pressures from a well while drilling operations are in progress. A BOP is therefore a critical component of underwater drilling, as it can help prevent the loss of lives, loss of fuel, and environmental damage brought about by the nonbiodegradable petroleum spill.

Onshore Annular BOPs Lead Global Blowout Preventer Market

In terms of location, the demand for onshore BOPs far outstrips that for offshore BOPs. Nearly 67.6% of the 2013 global blowout preventer market was held by onshore BOPs.There are two types of configurations for BOPs: ram and annular. The former utilizes a steel plunger ram pair, which extends to the center of the wellbore in order to control and/or restrict the flow. Elastomeric components on the ram faces allow for a fast reaction time to close along with a heavy resisting force to the flow. Annular BOPs or spherical BOPs are useful for sealing the annular region between the drill pipes and the wellbore. An annular BOP is often employed above a ram BOP. Of these, ram BOPs dominated the global blowout preventer market, holding 68.2% of the market in 2013.



MEA Dominates Global Blowout Preventer Market

28.69% of the global blowout preventer market was held by the Middle East and Africa regional segment in 2013. The region is expected to retain its lead position till 2022. The second position was held by Asia in 2013, when it held 24.06% of the market. The U.S. ranked third in the global market for blowout preventers.

The top producers of hydrocarbons in 2013 were China (South China Sea), Australia, and Malaysia. Their growth will in turn add to the demand on the global blowout preventer market. The Asia Pacific region will, therefore, be one of the fastest growing regions in the world. Drilling activities in the Gulf of Mexico are set to increase the demand from the global blowout preventer market from the U.S.

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