SOURCE: Lux Research

Lux Research

November 15, 2016 07:30 ET

Oil and Gas Industry Turning Towards 3D Printing to Cut Costs and Raise Efficiencies

In an era of low oil prices, 3D printing offers gains in a wide range of use cases, as leaders like Halliburton, Schlumberger, and Shell begin to use the technology, says Lux Research

BOSTON, MA--(Marketwired - November 15, 2016) - Under pressure to keep up profits in the face of low oil prices, the old-school oil and gas industry is turning to the new-school technology of 3D printing, according to Lux Research.

"3D printing holds promise for the oil and gas industry, but the industry needs to change its culture and learn to integrate 3D printing into its complex supply chain in order to fully benefit," said Harshit Sharma, Lux Research Associate and lead author of the report titled, "Assessing the Opportunity of Additive Manufacturing for the Oil and Gas Industry."

"It can take lessons from successful adopters, notably from GE's acquisitions and successful implementation of 3D printing for mass production," he added.

Lux Research analysts created value and suitability metrics for 12 specific use cases for 3D printing in the oil and gas industry. Among their findings:

  • Some use cases are lucrative. Profitable use cases include 3D printing chemical injection stick tools and nozzles for downhole cleanout tools. Two speculative use cases that also sit in the "forthcoming" quadrant are sand control screens and pipeline pigs.
  • Collaboration is key to technology hurdles. Partnerships are key to overcoming technological barriers in the short term. Oil and gas companies should engage with metal printing companies such as EnergyX and Arevo for developing new printing techniques for use cases like liner hanger spikes. For drill bits, candidate partners include Nanosteel and QuesTek Innovations.
  • Culture, conservatism are barriers. Oil and gas executives cite industry size and structure, risk aversion, and lack of infrastructure as key reasons for slow adoption of 3D printing. However, the success of 3D printing in the automotive and aerospace industries shows these factors are not insurmountable barriers, and the oil and gas industry's growing focus on operational efficiency is driving change.

The report, titled "Assessing the Opportunity of Additive Manufacturing for the Oil and Gas Industry," is part of the Lux Research Exploration and Production Intelligence and the Advanced Materials Intelligence services.

About Lux Research

Lux Research provides strategic advice and ongoing intelligence for emerging technologies. Leaders in business, finance and government rely on us to help them make informed strategic decisions. Through our unique research approach focused on primary research and our extensive global network, we deliver insight, connections and competitive advantage to our clients. Visit www.luxresearchinc.com for more information.

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