Downhole Cables Market Trends

Key Emerging Trends in the Downhole Cables Market

Increasing Exploration and Production of Oil and Gas

More oil and gas are being produced globally, and this is happening for a few reasons. According to the BP Statistical Review of World Energy in 2019, the production of oil increased from 92,502 thousand barrels per day in 2017 to 94,718 thousand barrels per day in 2018. Natural gas production also grew from 3,677.7 billion cubic meters in 2017 to 3,867.9 billion cubic meters in 2018. This growth is because the world's economy is getting better.

People are using more natural gas to generate electricity because it produces more power and has fewer emissions than coal and diesel plants. In 2018, the use of natural gas for electricity generation increased from 5,952.8 Terawatt-hour in 2017 to 6,182.8 Terawatt-hour in 2018. This trend is expected to continue, leading to more production of oil and gas globally.

Many companies, like Schlumberger Limited and Halliburton, are focusing on exploring and producing oil and gas around the world. For example, Schlumberger partnered with Torxen Energy and Cenovus Energy Inc. in Canada for oil and gas exploration. Halliburton signed a contract with Woodside in Australia for drilling services in Senegal, Africa. These activities are increasing the demand for downhole cables used for data monitoring and powering equipment during drilling.

The number of drilling rigs worldwide also increased from 2029 in 2017 to 2211 in 2018, according to Baker Hughes. This indicates a rise in the use of downhole cables. More oil wells are being drilled globally, going from 41,560 in 2017 to 43,456 in 2018, according to the World Oil Report. All these developments contribute to a higher demand for downhole cables in the oil and gas industry.

Technical Developments in Drilling Activities

In the oil and gas industry, drilling activities are crucial for extracting oil and gas, monitoring wells, and analyzing reservoirs. Advanced technology in drilling brings benefits like lower drilling costs and increased extraction of oil and gas. Companies use technologies such as the Internet of Things (IoT), data analysis tools, and real-time well data for oil and gas processing. This data can now be accessed remotely in real-time, thanks to improvements in communication technology.

The hardware used in oil wells has also improved significantly, making the equipment last longer and be more versatile. For example, Schlumberger launched SpectraSphere, a fluid mapping drilling service, to reduce costs and risks during fluid analysis. Halliburton introduced 3D reservoir mapping for petrophysical analysis and reservoir fluid characterization during drilling.

These technological advancements increase the demand for downhole cables, which play a crucial role in drilling applications. Therefore, the technical developments in drilling activities are expected to contribute to the growth of the global downhole cables market in the coming years.