The directional drilling industry has seen striking improvements as of late, moved by the raising requirement for energy assets and the examination of undiscovered stores. Because of the rising trouble of getting to customary repositories, the business has taken on directional drilling as a possible other option. This strategy empowers administrators to infiltrate supplies arranged seaward or underneath troublesome geographical developments. The progression of innovation, especially concerning into opening instruments and gear, has yielded drilling apparatuses that are more multifaceted and exact, empowering administrators to navigate complex underground conditions with more prominent accuracy. Improved mechanization, correspondence frameworks, and sensors have expanded the productivity and achievement paces of directional drilling activities. With an end goal to boost hydrocarbon recuperation and creation, level penetrating strategies are gaining notoriety because of their upgraded well efficiency, expanded supply contact, and natural amicability. Directional drilling is encountering a flood in prominence as administrators endeavour to limit surface unsettling influence and diminish their natural effect, in this way tending to maintainability and ecological worries. By focusing on cost effectiveness through directional drilling, which lessens well access and surface framework, the oil and gas industry is expanding innovative work to work on its monetary practicality. The interest for directional drilling is expanding in areas enriched with significant amounts of eccentric gas and hydrocarbon holds. The development of directional drilling is basically seen in North America, though Asia-Pacific and the Centre East are logically embracing these refined penetrating advances. Industry principles and unofficial laws significantly affect the direction of the directional drilling business sector. The prioritization of natural and security contemplations has brought about the plan of thorough conventions that influence the determination of penetrating techniques and innovations inside the business. A period of critical change is in progress in the directional drilling area, set apart by headways in innovation, developing natural mindfulness, and an expanded accentuation on the examination of unpredictable assets. On the whole, these advances show the business' obligation to development, effectiveness, and manageability intending to the difficulties related with getting to and separating hydrocarbons in an arising energy scene.
Report Attribute/Metric | Details |
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Market Opportunities | Advancement in drilling technologies |
Market Dynamics | The growing production of shale gas and oil The need for oil and gas is increasing in developing nations |
Directional Drilling Market Size was valued at USD 12,568.92 million in 2023. The Directional Drilling Market industry is projected to grow from USD 13,762.97 million to USD 31,371.18 million by 2032, exhibiting a compound annual growth rate (CAGR) of 9.59% during the forecast period (2024 - 2032). The Directional Drilling Market is significantly growing due to the increasing demand for energy, especially in the oil & gas industry, as oil & gas is used across end-use industries.
Further, oil, gas, and hydrocarbons are some of the most dependable and efficient resources that are further attracting oil & gas companies, which are likely to present growth opportunities for the key players in the global market. Directional drilling complies with environmental regulations by minimizing surface disturbance and reducing the overall environmental impact of drilling operations. Also, this technique has found application in geothermal energy exploration and aid in the extraction of geothermal heat for renewable energy production.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
One of the main factors driving the growth of the directional drilling market is the continued rise in oil prices worldwide. With the increasing need for higher productivity and efficiency of the oil drilling process, there has been an increase in the demand for directional drilling. In addition, the maturation of offshore drilling sites has led to the exploration of many untapped marine resource sites. Oil & gas companies and drilling contractors seek to take advantage of directional drilling to gain greater control over the direction of the hole in these new locations. The price of oil is subject to the demand and supply of oil, which fluctuates greatly. For instance, crude oil prices have increased sharply in 2021Q3 and continued rising in October, driven by increased demand, weather-related supply disruptions, and restrained production by OPEC and its partners (OPEC+). Oil prices have also been supported by higher natural gas prices, which increased oil demand for heating and electricity generation. Crude oil prices are expected to average USD74/bbl in 2022, before declining to USD65/bbl in 2023 as global production recovers.
Using the horizontal digging method compared to digging a trench for underground works is much faster. When digging an underground trench to add a pipe system, this leads to more damage to the land and takes a long time to reassemble everything; However, using the directional drilling method requires a single pilot hole and a machine to replace the underground pipe. Directional drilling is more cost-effective than trenching to replace any underground pipes. As the whole process takes much less time and much less dirt to replace when the project is finished and uses less machinery compared to the normal method. Fewer machines mean lower costs.
The rising focus on discovering new oilfields will create a growth opportunity for directional drilling market. A few major discoveries included the discovery of deep-water offshore fields in Senegal, the Alpine highlands of West Texas, the United States, the Northern Kerio Valley in Kenya, Alaska in the United States, and Golan Heights in Israel, among others. Due to lower oil prices, oil field operators have lowered the cost of exploration resulting in the fewest number of new oil reserves and field discoveries in 2016 since 1947. However, by 2018, oil prices are expected to return to USD70 per barrel. This will encourage oil field operators and independent exploration companies to start investing in exploration activities to improve the reserve replacement ratio. For instance, China has discovered a new oil & gas area with a depth of 1 billion tons in the Tarim Basin in Northwest China's Xinjiang Uygur Autonomous Region, the largest discovery in the basin in nearly 10 years, the state-owned Chinese energy giant China National Petroleum Corporation. The discovered well is in the Fuman oil field area, a major crude oil production block in the Tarim oil field. The drilling depth was 8,470 meters, and the test oil column was 550 meters high, both of which set a new record for the deepest oil production and the highest oil column in the desert region of the Tarim Basin.
Another recent example is Kuwait's discovery of two new oil fields in addition to fresh reserves in the Great Burgan Oil Field. The Kuwaiti Minister of Oil and Minister of Electricity and Water, Muhammad Al-Faris, announced the discoveries in a statement via the official KUNA news agency. One of the discoveries was in the Homa oil field in Northwest Kuwait, with a production capacity of 1,452 barrels per day (b/d) of light oil. The second is in the Qashaniya field in the country's north, where light oil was discovered with a commercial quantity of 1,819 barrels per day and 2.78 million cubic feet of associated gas per day.
The Directional Drilling Market segmentation, based on Well Type has been segmented as Horizontal, Extended reach and Multilateral. Among these, the Horizontal segment is projected to dominate the Directional Drilling Market revenue through the projected period. Horizontal well drilling is a method of drilling out sideways and along with a certain layer of rock by deviating the well until it is at, or near to, a 90° angle from the vertical. A wellbore's trajectory begins vertically and then steers horizontally for thousands of feet deep. This increases the amount of contact between the well and the reservoir, which boosts productivity.
Based on Tool type, the Directional Drilling Market is segmented as Logging-while drilling (LWD) and Measurements-while drilling (MWD). Out of which the Measurements-while drilling (MWD) segment dominated base year market and is also projected to dominate the Directional Drilling Market revenue through the projected period. Measurement while drilling (MWD) tools are essential tools used in directional drilling to provide real-time data on wellbore trajectory, formation characteristics and drilling parameters. These tools are usually located in the drill string and transmit data to the surface while drilling. MWD technology enables drillers to make informed decisions and optimize the drilling process.
Based on Technology, the Directional Drilling Market is segmented as Rotary Steerable Systems and Downhole Motors. Out of which the Rotary Steerable Systems segment dominated base year market and is also projected to dominate the Directional Drilling Market revenue through the projected period. A rotary steerable system is a drilling technology used in directional drilling. It employs specialized downhole equipment to replace conventional directional tools such as mud motors. They are generally programmed by the measurement while drilling, directional driller who transmits commands using surface equipment which the tool responds to, and gradually steers into the desired direction. They are designed to drill directionally with continuous rotation from the surface, eliminating the need to "slide" a mud motor.
Based on Application, the Directional Drilling Market is segmented as Onshore and Offshore. Out of which the onshore segment dominated base year market and is also projected to dominate the Directional Drilling Market revenue through the projected period. Onshore development refers to the exploration and development of oil resources, gas reserves, and geothermal energy on land. The rigs are brought in by ground transportation, and numerous wells are frequently drilled from the same location in close proximity to one another by slightly adjusting the rig. Drilling underground deposits are required for onshore crude oil and geothermal energy production.
Based on Region, the Directional Drilling market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. The North America Directional Drilling market held the maximum market share and is also expected to account for a significant revenue share during the forecast period. The increasing per capita energy consumption, reduction in crude oil prices, and increasing exploration and production of oil and gas are likely to drive the growth of the directional drilling market in the region. Moreover, the development of strategic petroleum reserves and increased oil demand are expected to provide significant growth opportunities for the directional drilling market. As per the Annual Energy Outlook 2019 by the US Energy Information Administration (EIA), crude oil production in the country is likely to reach 14.0 million bpd by 2040. Thus, the increasing oil reserves and crude oil production in the US is expected to drive the growth of the directional drilling market in the country during the forecast period.
Key market players are emphasizing significantly on R&D for increasing their product offerings, which will further help the Directional Drilling Market to grow considerably. Market players are adopting several business development strategies such as acquisitions, mergers, collaborations, and partnerships to enhance their market presence and acquire a larger customer base. To survive in the competitive market, industry players must provide cost effective products.
The Directional Drilling market is very competitive with market players trying to develop unique and innovative products and solutions, which could render the competitors’ offerings obsolete. The competitive environment is likely to grow further owing to rising technological advancements. Some of the key players operating in the Directional Drilling Market are Baker Hughes Incorporated, National Oilwell Varco, Weatherford International Plc., Schlumberger, Nabors Industries Ltd, Cathedral Energy Services Ltd, Jindal Drilling & Industries Ltd, Gyrodata Incorporated, Halliburton Company. To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.
Nabors Industries Ltd: Nabors Industries Ltd is a leading provider of advanced technology for the energy industry. It has operations in 20 countries. It owns and operates one of the world's largest land-based drilling rig fleets and provides offshore platform rigs in the US and internationally. It also provides directional drilling services, performance tools, and innovative technologies for its own rig fleet and those of third parties. The company manufactures and sells top drives, catwalks, wrenches, draw works, and other drilling-related equipment installed on both onshore and offshore drilling rigs.is engaged in domestic marketing of petroleum products. The company operates various operators such as onshore smart rigs, offshore rigs, energy transition, directional automation, drilling automation, digital operations, managed pressure services, tubular running services, directional drilling services, and custom engineered rigs.
Weatherford International Plc.: Weatherford International Plc. is an international oilfield service company that provides the oil and gas sector with innovative solutions, technology, and services. The company specializes in Drilling, Evaluation, Completion, Production, and Intervention. The company has a network of over 700 locations in over 80 countries, including production, service, research and development, and training centers. Weatherford International Plc. has a global presence.
January 2022: NOV launched Fuego Reamer, a second-generation wellbore conditioning tool. The Fuego Reamer includes new design features, concepts, and materials proven to be highly effective when paired with our Fuego drill bits series. It can improve weight transfer to the bit, reduce string-generated torque while drilling, lower time spent reaming or back reaming during connections and trips, and even eliminate the need for dedicated clean-out runs. All these benefits result in time savings, reducing the overall drilling cost of your well.
December 2021: Baker Hughes Incorporated collaborated on geothermal projects and technology development designed to deliver low carbon heating and cooling for commercial and industrial facilities and processes. The companies' work will be initially focused on the Republic of Ireland and the UK.
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