Cost & Price Analysis
Gas Lift systems represent a fairly low market share globally. Coupled with medium R&D costs and a small market, the pricing of Gas Lift equipment (valves, mandrels etc) has always been driven by an opportunistic approach and top-bottom pricing, with high premiums charged. In the long run, the prices for Gas Lift systems will not exhibit significant volatility and might be driven by commodity prices.
Since Gas Lift equipment consists of valves and mandrels, the major cost component is metals. Depending on the design and application, the costs of Gas lift valves and mandrels may vary 3x due to the selection of materials and processes, such as welding, brazing and fabrication techniques.
Selection of elastomers/fluoroelastomers (high-quality synthetic rubber for sealing) affects the cost as well, and will a significant element for high pressure and high H2S environment.
Acquisition for Gas Lift equipment is primarily influenced by two factors - Assembly / Manufacturing costs and R&D costs.