Flow Assurance In Oil And Gas Market Size, Share, and Trends 2024 to 2034

The global flow assurance in oil and gas market is surging, with an overall revenue growth expectation of hundreds of millions of dollars during the forecast period from 2023 to 2032.

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Key Takeaways:

• North America is expected to dominate the market over the forecast period.
• By Type, the steady state simulation segment is expected to dominate the market during the forecast period.
• By Sector, the upstream segment is expected to capture the largest market share over the forecast period.
• By Operation, the offshore segment is expected to grow at the highest CAGR over the forecast period.
• By Application, scale management is expected to hold the largest market share over the forecast period.

Flow Assurance in Oil and Gas Market Overview:

Flow assurance is a critical aspect of the oil and gas industry and other industries involving the transportation of fluids through pipelines or different carriers. It refers to the set of measures and strategies implemented to ensure the safe, reliable, and efficient flow of fluids (usually hydrocarbons like oil and natural gas) from the reservoir to their destination, which can be a processing facility, storage tanks, or a point of export.

To avoid the development and deposition of undesirable solids (such as hydrates, wax, asphaltenes, and scales) during the production and transportation of crude oil, understanding fluid characteristics and operating conditions is essential. Methane gas hydrates may crystallize or asphaltenes may precipitate in pipelines under the condition of severe heat and pressure. The asphaltene, wax, or hydrate crystals might precipitate and clump together to the point of clogging the pipeline if they are not adequately regulated. It can be expensive and risky to remove an asphaltene or hydrate clog from a subsea pipeline.

Growth Factors:

• The market growth is driven by several factors including rising demand for energy, stringent environmental regulations, complex reservoirs and fields, growing automation and technological advancements.
• According to the US Energy Information Administration, worldwide output of liquid fuels will climb by 1.2 million b/d in 2023. 2024 will see a 1.7 million b/d rise in global output. The United States, Brazil, Canada, and Guyana are the top four countries leading non-OPEC production growth, which will increase by 2.0 million b/d in 2023 and 1.3 million b/d in 2024.
• According to the report published by BP “Review of World Energy 2022”, oil consumption rose by 5.3 million barrels per day (b/d) in 2021, although it still lagged behind 2019 levels by 3.7 million b/d. Gasoline (1.8 million b/d) and diesel/gasoil (1.3 million b/d) accounted for the majority of the consumption rise. Such rising demand for oil and other associated sources is observed to act as a major growth factor for the global flow assurance in oil and gas market.
• As oil and gas industries across the globe start emphasizing on the design and operation of the oil and gas system, the market is expected to accelerate in the upcoming years. In addition, the cost effective measure offered by flow assurance processes for oil and gas industry also highlights the market’s potential.

Flow Assurance in Oil and Gas Market Scope

Flow Assurance in Oil and Gas Market Dynamics

Driver

Rising energy demand

The global energy demand continues to grow, leading to the development of more remote and unconventional oil and gas reserves. Ensuring the reliable flow of hydrocarbons from these reserves to processing facilities and markets is essential to meet the growing energy needs. For instance, according to the European Commission, the consumption of oil products increased in the industry sector both for non-energy use (+6.3 pp) and for energy use (+2.7 pp), and in some cases, the increase was significant, such as in the services sector (+11.4 pp) and the transport sector, the largest user of oil products (+9.4 pp overall for different types of transports). Thus, the growing energy demand is expected to propel the market growth during the forecast period.

Restraint

Complexity and high cost

Flow assurance solutions often require a deep understanding of fluid behavior, thermodynamics, and fluid mechanics. The complexity of these systems can make them challenging to design, implement, and maintain effectively. Moreover, implementing flow assurance measures can be expensive, particularly in remote or challenging environments. The cost associated with chemical inhibitors, insulation, heating systems, monitoring equipment, and maintenance can strain operational budgets. Thus, this is expected to limit the market growth during the forecast period.

Opportunity

Offshore and deepwater exploration

The growing offshore and deepwater exploration is expected to offer a potential opportunity for market growth during the forecast period. As offshore and deepwater exploration activities continue to expand, the demand for flow assurance solutions in these challenging environments is expected to grow. Innovation in subsea technologies and equipment will be crucial to meeting this demand.

• For instance, in August 2022, ExxonMobil, a major American energy corporation, teamed up with the Oil & Natural Gas Corporation (ONGC), a government-owned business in India, to explore for hydrocarbons in deep waters off the coast of that nation. This will increase that nation's energy security. The Krishna Godavari and Cauvery basins in the eastern offshore, as well as the Kutch-Mumbai region in the western offshore, would be the focus of this partnership, according to ONGC. Therefore, such collaboration is expected to propel revenue growth in the flow assurance market.

Type Insights

Based on the type, the global flow assurance in the oil & gas market is segmented into steady state simulation and transient state simulation. The steady state simulation segment is expected to dominate the market during the forecast period. Steady state simulation is a crucial tool in flow assurance, as it helps engineers and operators model and analyze the behavior of fluids within pipelines and production systems under steady-state conditions. Steady state simulations are used to analyze the hydraulic behavior of pipelines and production systems.

Engineers can determine pressure drops, flow rates, and fluid velocities throughout the system. This information is essential for designing pipelines and facilities to ensure the desired flow conditions are maintained. Moreover, these simulations predict temperature distributions and identify potential areas where hydrate and wax formation might occur. This information guides the design of insulation and heating systems to prevent solid deposit formation. Thereby, driving the market growth over the forecast period.

Sector Insights

Based on the sector, the global flow assurance in oil & gas market is segmented into upstream, midstream and downstream. The upstream segment is expected to capture the largest market share over the forecast period. The wellbore, where hydrocarbons are first generated, is where managing flow assurance starts. There are several difficulties could occur, including the potential for wax and hydrate production. To avoid obstructions and sustain flow, procedures for flow assurance include the injection of chemical inhibitors and the use of heating systems. Thus, flow assurance in the upstream oil and gas industry is critical for ensuring the economic viability and safety of production operations.

Operation Insights

Based on the operation, the global flow assurance in oil & gas market is segmented into onshore and offshore. The offshore segment is expected to grow at the highest CAGR over the forecast period. Offshore environments often involve low temperatures and high pressures, which increase the risk of hydrate and wax formation. These deposits can block pipelines and equipment, causing flow disruptions, which in turn, drive the flow assurance industry. Moreover, the growing offshore oil & gas project investments further drive the market growth over the projection period.

• According to the US Energy Information Administration, in 2022, wells in the Federal Offshore Gulf of Mexico produced roughly 14.5% of the nation's crude oil, while those in the Federal Offshore Pacific (California) generated around 0.1%. Thus, the aforementioned facts support the market expansion during the projected period.

Application Insights

Based on the application, the global flow assurance in oil & gas market is segmented into scale management, asphaltene management, hydrate prevention and others. The scale management is expected to hold the largest market share over the forecast period. Flow assurance experts use analytical tools and modelling techniques to identify the potential for scale formation in pipelines and equipment. They predict when and where scaling is likely to occur based on factors such as fluid composition, temperature, pressure, and flow rate. Thus, this is expected to propel the segment's growth.

Regional Insights

North America is expected to dominate the market during the forecast period. The market growth in the region is attributed to the growing shale gas production. The region is known for its extensive shale oil and gas resources, particularly in the Permian Basin in Texas and New Mexico. Flow assurance is essential in these areas to manage the production of unconventional hydrocarbons and transport them efficiently. The overall technological innovation and rapid adoption of the same also promote the market’s growth.

• For instance, according to the US Energy Information Administration, Shale formations contributed roughly 28.5 trillion cubic feet (Tcf) or 80% of all dry natural gas produced in the United States in 2022.

Moreover, the increasing offshore production in the region is also the main contributor to the market expansion. The Gulf of Mexico is a major hub for offshore oil and gas production in North America. Deepwater and subsea operations in this region require specialized flow assurance measures to address the challenges posed by high pressures, low temperatures, and the risk of hydrate and wax formation.

• For instance, in June 2023, BP announced that oil production at its Argos offshore platform had begun smoothly, supplying extra energy at a crucial moment and enhancing its position as a major producer in the deepwater US Gulf of Mexico. Argos is BP's sixth platform in the Gulf of Mexico and the first newly constructed production facility the company has run in the area since 2008. It has a gross production capacity of up to 140,000 barrels of oil per day. Therefore, this kind of project in the region is expected to propel the growth of the market in the region.

Recent Developments

• In July 2022, Maximus® 7.3 modeling software was introduced by KBC (a Yokogawa Company). With historical matching and automated processes, this new edition improves engineers' modeling skills for the entire asset, from the reservoir to the facilities. Project managers and production and flow assurance engineers may then improve design and operational methods to maximize the potential of assets while lowering risks.

Flow Assurance in Oil and Gas Market Players

• Oceaneering International, Inc.
• Baker Hughes Company
• Intertek Group plc
• ROSEN Group
• SLB
• GATE Energy
• AMOG CONSULTING
• ESSS
• SGS
• Exxon Mobil Corporation
• METTLER TOLEDO

Segments Covered in the Report:

(Note*: We offer reports based on sub-segments as well. Kindly, let us know if you are interested)

By Type

• Steady State Simulation
• Transient State Simulation

By Sector

• Upstream
• Midstream
• Downstream

By Operation

• Onshore
• Offshore

By Application

• Scale Management
• Asphaltene Management
• Hydrate Prevention
• Others

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa