Wellhead Equipment Industry in the age of Covid-19

Wellhead equipment has taken the center stage in the oil and gas industry. It plays an essential role in drawing oil and gas out of the ground and getting it to the surface. A wellhead is basically an element over the top of a well that provides the structural and pressure-containing edge for the drilling and production equipment. It offers suspension points and pressure seals for the drill strings forming an integral structure of the well.

The wellheads equipment are welded on the drill string, in the course of drilling operations. And they can be re-used and remodeled for other well and drilling tasks as well. The system serves multiple functions such as casing suspension, pressure monitoring, tubing suspension, and pumping access. Moreover, wellheads are a mode of attaching a good pump and consistent means of retrieving a well.

Wellhead systems are also utilized to regulate and limit oil flow rates by plummeting the pressure to guard equipment and monitor the refining process. In recent years, the global market has witnessed increased demand for wellheads owing to the increasing investments in oil & gas investigation activities and pipelines & refineries. Also, redevelopments of mature oil wells are fueling the demand for wellhead equipment. A report published by Allied Market Research reveals that the wellhead equipment market is anticipated to register a growth rate of 5.0% from 2019 to 2026. The rise in technological advancements is another factor leading to an increase in its adoption. However, the arrival unprecedented pandemic has interrupted the demand and affected the market in terms of revenue. Following are some of the impacts of the Covid-19 outbreak on the wellhead equipment manufacturing firms, globally.

The coronavirus outbreak has intensely impacted various industries and the wellhead equipment industry is no exception. The market has witnessed a drop in demand due to the curtailed end-use businesses including the oil and gas industry. The further investments for upcoming plans and projects have been halted, which impacted the market in terms of revenue. However, the government in several regions has given a nod to restart the businesses in order to maintain economic requirements. Owing to the relaxations, the key market players have initiated to continue their businesses following different strategies including company collaboration. Also, the companies have issued Coivd-19 statements, to assist the customers in informing their ways of working amid the lockdown measures.

Working ways of key market players amid Covid-19-

EthosEnergy, a leading market player of the industry has issued a Coivd-19 Statement, informing the state of continuation of their business with all due measures issued by the world health organization (WHO), local government, and center of disease control. The company further stated the employees are working with all precautionary measures. Also the operations & maintenance business has implemented strict rules to keep sites running. Moreover, along with maintaining employee’s health, the company also aims to assist the customers during this challenging phase of Covid-19.

Companies collaborating in order to enhance development-

Another leading market player, Jereh Group have made a strategic cooperation agreement with Yantai Port Group, a port operation services provider. According to the principals of the agreement, the collaborators have agreed to augment collaboration in various areas including export & import of heavy equipment and spare parts, Internet of Things, wastewater treatment, oil tank cleaning, oily waste disposal, port cleaning, visualization technology, and others. Moreover, the companies aim to integrate their advantages in resources, brand, and business, to promote high-quality development in new growth-driving industries.

Though the pandemic has curbed the growth and abilities to a certain extent. However, the relaxations on restrictions by the local governments have assisted the companies during the lockdowns. This has also resulted in the continuation of investments for further plans and projects. On the other hand, the key market players are initiating different strategies to continue their businesses along with concerning the measures to curb the spread. These factors would assist the industry to manage the economic growth during the pandemic. Moreover, the industry would grow significantly post-pandemic.

 

Reference:

https://www.ethosenergygroup.com/covid-19-statement/

https://www.jereh.com/en/news/press-release/news-detail-9511.htm

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