Reservoir Analysis Market Expected to Reach $11.8 Billion by 2030

According to a new report published by Allied Market Research, titled, " Reservoir Analysis Market by Reservoir Type, Service, and Application: Opportunity Analysis and Industry Forecast, 2020-2030," the global reservoir analysis market industry was valued at $8.1 billion in 2020, and global reservoir analysis market forecast projected to reach $11.8 billion by 2030, with global forecast expected at a CAGR of 3.8% from 2021 to 2030.

Reservoir analysis is used to predict the performance of a reservoir that will have over the production life of the field. Reservoir performance affects the economic viability of a play or prospect and is a function of reservoir system quality. Performance is expressed by initial production rate and the percentage of hydrocarbon recovered from the hydrocarbon originally in place (recovery factor). Interpretation of Petro-physical well logs plays a major role in the analysis of geothermal and hydrocarbon reservoirs. The interpretation encompasses determination of lithology, porosity, permeability, and hydrocarbon saturation of the drilled section. In addition, to satisfy the increasing demand for crude products, oil companies are seeking to unlock the full potential of remote oil & gas fields, which were once inaccessible, because of technological limitations. In addition, it has become increasingly important to maintain these fields at their optimum production levels and extract the maximum number of resources to sustain production. This growing demand has led to the increase in the supply of energy.

The reservoir analysis market share is segmented on the basis of type, service, application, and region. On the basis of service, it is classified as conventional and unconventional. By service, it is categorized as geo modeling & reservoir simulation, data acquisition & monitoring, and reservoir sampling. On the basis of application, it is classified as onshore and offshore. On the basis of region, the market is analyzed into North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in this report include Baker Hughes, Inc., Core Laboratories, Emerson Electric Co., Expro Group, Geokinetics, Inc., Halliburton, Johnson Matthey, Schlumberger Limited, Trican Well Service Limited, and Weatherford International Ltd. 

The global reservoir analysis market analysis is analyzed and estimated in accordance with the impacts of the drivers, restraints, and opportunities. The period studied in this report is 2020–2030. The report includes the study of the reservoir analysis market with respect to the growth prospects and restraints based on the regional analysis. The study includes Porter’s five forces analysis of the industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the market growth. 

Impact Of Covid-19 On Global Market

• The International Energy Agency projected that oil & gas revenues for a number of key producers fell between 50% and 85% in 2020, compared to 2019, yet the losses are expected to be larger, depending on future market developments. With overall calculation of oil & gas demand, the oil & gas industry witnessed significant decline, thereby impacting market, which is completely dependent on the oil & gas industry. 
• Furthermore, import and export activities were significantly impacted, which, in turn, adversely affected the oil & gas industry, which, in turn, impacted the reservoir analysis market growth
• According to the UNIDO, 30.0–70.0% of pre-COVID-19 workforce of various industries, such as construction and mills, migrated back to their hometown, due to uncertainties and loss of income during the lockdown. This unavailability or less availability of workforce is expected to directly affect the production activities, thereby declining the demand for raw materials used in drilling. This is expected to restrain the growth of the market during the forecast period. 
• U.S. shale oil & gas demand plummeted, prices collapsed, and bankruptcies were announced at exceptional rates due to the uncertainties in crude oil and natural gas prices, Break-Even (BE) prices for fracking operations, financial and technical constraints within the industry, global hydrocarbon demand development, political and regulatory factors in the US, and environmental and societal sustainability 
• The U.S. shale industry registered net negative free cash flows of $300 billion, impaired more than $450 billion of invested capital, and saw more than 190 bankruptcies since 2010. However, there is negative impact on global market.
• The emergence of COVID-19 has coincided with a core oil market management dispute, which mainly involves the market shares commanded by Saudi Arabia (the largest sovereign producer among the OPEC membership) and Russia, which along with Mexico and occasionally Norway, has cooperated with OPEC as “OPEC+”. Oil market management disputes inevitably result in lower prices, and so the global oil industry finds itself reeling from the combined effects of OPEC+ disarray and ultra-low global demand caused by the pandemic.
• The decline was widespread, with record declines in both OECD (-4.8%) and non-OECD (-3.9%) countries. The US (the world’s 2nd-largest energy producer), saw a decline of 5.3%, the largest decline in the world last year, and the largest domestic decline on record. Production of all fossil fuels, nuclear power, and biofuels declined.
• The price effects of the economic slowdown following the COVID-19 pandemic contributed to reductions in U.S. petroleum and natural gas reserves in 2020. Proved reserves of crude oil and lease condensate decreased by 9 billion barrels in 2020, a decline of 19%, and proved reserves of natural gas decreased by just over 22 trillion cubic feet (TCF), a decline of 4%.
• Globally, natural gas production also saw a record decline, falling by 3.3%.  Yet none of the global top ten producers suffered a record decline, rather, the decline of natural gas production was broadly-based, with 40 of the 50 countries named in bp’s production table seeing declining output last year. As noted above, natural gas, unlike oil and total energy, saw global production decline more rapidly than demand, even without coordinated producer action as we saw with oil.
• Petroleum demand, which was largely inelastic, changing by one to three percent annually, slumped by more than 30 MMbbl/d in April 2020. Lockdowns of several nations across the world caused drastic changes in the crude oil market. Oil prices decisively broke the new normal of $50–60/bbl, with West Texas Intermediate (WTI) May futures prices falling even below zero (-$37/ bbl) because of low liquidity and limited available storage. Although the sub-zero price was a temporary dislocation, this intense volatility highlights the fragile state of the industry.
• According to the Organization for Economic Co-operation and Development (OECD), a surge in the price of crude oil began during the lockdown, due to extensive supply and less demand which increased the production of electricity. However, there is no impact of COVID-19 on the market, due to the extensive production of oil.
• COVID-19 impacted almost all industries by hindering various industrial operations and disrupting the supply chain. Maximum companies halted their operation due to less workforce. However, there is a sluggish decline in the global market due to impact of COVID-19. 
• Furthermore, import and export activities were significantly impacted, which, in turn, adversely affected the industries using reservoir analysis and thereby affecting the global reservoir analysis market. 

Key Findings Of Study

• On the basis of reservoir type, the conventional segment emerged as the global leader in 2020 and is anticipated to be the largest market during the forecast period.
• On the basis of service, the data acquisition & monitoring segment emerged as the global leader in 2020 and is anticipated to be the largest markets during the forecast period.
• On the basis of application, the onshore segment emerged as the global leader in 2020 and is anticipated to be the largest markets during the forecast period.
• On the basis of region, the LAMEA region registered the highest market share and is projected to maintain the same during the forecast period.