MENA Directional Drilling Market Research Report Information by Well Type (Horizontal, Extended Reach and Others) By Drilling Technique (Unconventional and Conventional) By Service Type (Logging-while drilling (LWD), Measurements-while drilling (RSS), Rotary Steerable System (RSS) and Others), By Application (Onshore and Offshore) and By Country -MENA Forecast to 2032

MENA Directional Drilling Market Overview

MENA Directional Drilling Market Size was valued at 2,394.8 USD Million in 2023. The Directional Drilling Market industry is projected to grow from USD 2,615.2 USD Million in 2024 to USD 3,679.7 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 4.4% during the forecast period (2024 - 2032). Drilling a well with a preferred deviation to reach the target location is referred to as directional drilling. This form of drilling is used to accurately place the wellbore to maximize recovery both on land and offshore. The major goal of this drilling method is to cover enormous areas with a single rig. Over the last few decades, maturing and aging onshore oilfields have prepared the way for more directional drilling in onshore locations, aided by offshore exploration and production activities in deep and ultra-deep regions. This is backed up by the addition of horizontal drilling services to increase the oil & gas well's production.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Directional Drilling Market Trends

Increasing Energy Demand from Various End Use Industries

The directional drilling market has been significantly impacted by the substantial increase in energy demand from a variety of end-use industries in the MENA (Middle East and North Africa) region. The primary cause of this increase in energy consumption is the collective escalation of the demand for reliable and efficient energy sources as a result of accelerated industrialization, urbanization, and economic growth. The petrochemical sector is one of the primary end-use industries that is propelling this demand. The MENA region is home to some of the world's largest petrochemical complexes, notably in countries such as the UAE, Saudi Arabia, and Qatar. These facilities necessitate a consistent supply of natural gas and oil, both of which can be more effectively accessed through directional drilling techniques. This drilling technique allows operators to access vast underground reservoirs, thereby optimizing the extraction process and guaranteeing a consistent energy supply to the petrochemical facilities.

The manufacturing sector is another substantial contributor to the increasing energy demand. There is a substantial investment in manufacturing sectors such as steel, aluminum, and cement as MENA countries diversify their economies to reduce dependence on oil exports. These industries necessitate substantial quantities of fuel and electricity, as they are energy intensive. This demand is met by directional drilling, which guarantees a consistent supply of energy required to maintain manufacturing operations by facilitating access to unconventional hydrocarbon reserves. In the MENA region, the construction sector is also a significant contributor to the growing energy demand. The demand for energy is at an all-time high due to the numerous infrastructure projects that are currently underway, such as the development of smart cities, transportation networks, and large-scale housing projects. Directional drilling provides a solution by facilitating the efficient exploitation of oil and gas reserves in environmentally sensitive or challenging areas, thereby satisfying the energy needs of these extensive construction projects.

Rising Advancements in Drilling Technologies

Significant advancements in drilling technologies have occurred in the MENA (Middle East and North Africa) region, which are currently propelling the expansion of the directional drilling market. The efficiency, accuracy, and cost-effectiveness of drilling operations are significantly improved by these technological advancements, rendering them highly appealing for oil and gas exploration and production in the region. One of the most significant technological advancements is the construction of rotary steerable systems (RSS). In contrast to traditional techniques, RSS enables the drill bit to be guided along a desired path while the drill string is continuously rotated. This technology substantially enhances the speed and precision of drilling, thereby reducing the time and cost associated with drilling operations. The capacity to precisely navigate intricate underground formations guarantees the optimal placement of wells, thereby increasing hydrocarbon recovery rates and maximizing the economic viability of oil and gas projects in the MENA region.

The integration of real-time data analytics and monitoring systems is another significant development. These technologies allow operators to continuously gather and analyze data from downhole sensors, thereby providing real-time insights into reservoir characteristics and drilling conditions. Drilling engineers can optimize the drilling process, minimize risks, and prevent potential issues such as wellbore instability or drilling fluid losses by making informed decisions on-the-fly by leveraging this information. The adoption of directional drilling in the region is further facilitated by the reduction of non-productive time and the enhancement of overall operational efficiency through the use of real-time data analytics. The directional drilling market has also experienced substantial growth as a result of advancements in logging-while-drilling (LWD) and measurement-while-drilling (MWD) technologies. During the drilling process, MWD and LWD instruments offer essential information regarding the wellbore trajectory and geological formations. This data is indispensable for precisely guiding the drill bit and guaranteeing that the well is drilled in the most advantageous location to access hydrocarbon reserves. Improved MWD and LWD technologies provide higher resolution data and increased reliability, which are essential for successful directional drilling operations. This enables more precise well placement and improved reservoir characterization.

Surging Demand for Smart Directional Drilling

In the MENA region, the directional drilling market is propelled by the imperative for regulatory compliance and environmental sustainability. The oil and gas industry is under increasing pressure to implement more sustainable practices as global awareness and concern for environmental protection continue to rise. Directional drilling is an appealing alternative for operators who wish to reduce their ecological footprint and comply with rigorous environmental regulations, as it provides numerous environmental benefits in comparison to conventional vertical drilling techniques.

One of the primary environmental advantages of directional drilling is its capacity to minimize surface disturbance. Traditional vertical drilling necessitates the use of numerous well sites and a substantial amount of land, which results in the destruction of habitats, soil erosion, and substantial visual and aural pollution. Conversely, directional drilling enables the drilling of multiple wells from a single surface location, thereby significantly reducing land disturbance. This consolidated imprint is especially advantageous in environmentally sensitive regions, such as protected wildlife habitats or regions with fragile ecosystems, where the preservation of the natural landscape is essential. An additional significant benefit is the diminished impact on water resources. In order to access offshore or underwater oil and gas reserves without the necessity of constructing large and intrusive platforms, directional drilling techniques are frequently implemented. The risk of water contamination and marine ecosystem disruption is significantly reduced by drilling from onshore locations or smaller, less invasive offshore structures. This is particularly critical in the MENA region, where the littoral and marine environments are essential for the local economies and biodiversity.

Additionally, the efficiency of resource extraction is improved by directional drilling, which results in the more sustainable utilization of hydrocarbon reserves. Directional drilling maximizes contact with the productive reservoir zones by facilitating precise well placement and extended reach, thereby increasing the amount of recoverable oil and gas. This enhanced efficiency results in a reduction in the overall environmental impact of drilling operations, as fewer wells are required to extract the same quantity of resources. It also assists in the more sustainable management of the reservoir, thereby reducing the necessity for new drilling projects and extending its productive life. Another substantial environmental advantage is the capacity to access reserves that were previously unattainable or economically unfeasible. Directional drilling is capable of extracting resources that are situated beneath urban areas, infrastructure, or protected regions without disrupting the surface. This preserves the natural and social environments by reducing the necessity for relocating communities or modifying landscapes. Furthermore, the ability to penetrate horizontally enables operators to circumvent obstacles and avoid environmentally sensitive areas entirely, thereby further reducing ecological disruption.

Directional Drilling Market Segment Insights:

Directional Drilling by Well Type Insights

The MENA Directional Drilling Market segmentation, based on Well Type has been segmented as Horizontal, Extended Reach and Others. Among these, the Horizontal segment is projected to dominate the MENA Directional Drilling market revenue through the projected period. Horizontal wells are a significant technological advancement in the field of directional drilling, representing a crucial innovation in contrast to traditional vertical wells. Horizontal drilling involves excavating the wellbore vertically to a specific depth, followed by a deviation to a horizontal or near-horizontal trajectory. This enables operators to access a broader area of the reservoir and optimize production from a single wellbore. Horizontal wells are anticipated to be instrumental in the expansion of the directional drilling market in the Middle East and North Africa (MENA) region. The MENA region is renowned for its extensive oil and gas reserves, and the development of these resources is becoming more dependent on sophisticated drilling technologies. In comparison to vertical wells, horizontal wells have the ability to access a greater portion of the reservoir.

Directional Drilling by Well Type, 2023, 2032 (USD Million)

Directional Drilling by Drilling Technique Insights

Based on Drilling Technique, the MENA Directional Drilling Market is segmented as Unconventional and Conventional. Out of which the Conventional segment dominated base year market and is also projected to dominate the MENA Directional Drilling market revenue through the projected period. Conventional drilling is the conventional method employed in the oil and gas industry to extract hydrocarbons from subterranean reservoirs. This technique entails the direct excavation of a vertical wellbore into a reservoir, which enables the extraction of oil or gas. It is distinguished by its uncomplicated methodology, which involves the use of conventional rotary drilling machinery to construct a well that typically follows a vertical trajectory. In regions with established oil fields, conventional drilling continues to play a critical role in the MENA (Middle East and North Africa) directional drilling market. The cost-effectiveness and simplicity of conventional drilling techniques are significant advantages for the MENA region, which is renowned for its extensive hydrocarbon reserves. In general, conventional drilling is less costly than more sophisticated methods, such as horizontal or directional drilling.

Directional Drilling by Drilling Technique, 2023, 2032 (USD Million)

Directional Drilling by Service Type Insights

Based on Service Type, the MENA Directional Drilling Market is segmented as Logging-while drilling (LWD), Measurements-while drilling (RSS), Rotary Steerable System (RSS) and others. Out of which the Rotary Steerable System (RSS) segment dominated base year market and is also projected to dominate the MENA Directional Drilling market revenue through the projected period. Rotary steerable systems (RSS) are pivotal technologies that considerably improve drilling operations in the MENA (Middle East and North Africa) directional drilling market. RSS is a sophisticated mechanism that is used to precisely guide the drill bit in directional drilling, a process that is essential for the efficient extraction of oil and gas reserves. RSS enables continuous steering while the drill is in motion, in contrast to conventional systems that depend on periodic adjustments to the drill's angle. A combination of sophisticated electronics, hydraulic components, and mechanical mechanisms that are integrated into the system is responsible for this capability.

Directional Drilling by Service Type, 2023, 2032 (USD Million)

Directional Drilling by Application Insights

The MENA Directional Drilling Market segmentation, based on Fuel has been segmented as Onshore and Offshore. Among these, the Onshore segment held the maximum market share and is also expected to account for the significant revenue share during the forecast period. The term "onshore" in the context of the MENA directional drilling market denotes drilling activities that are conducted on land rather than at sea. In a land-based environment, onshore drilling is the process of exploring and extracting oil and gas reserves that are situated beneath the earth's surface. This is in contrast to offshore drilling, which is conducted in expanses of water such as oceans or seas. The MENA (Middle East and North Africa) directional drilling market is significantly influenced by the onshore segment, which is characterized by the region's extensive and frequently accessible land-based hydrocarbon resources. Countries in this region, such as Kuwait, Iraq, the United Arab Emirates, and Saudi Arabia, are distinguished by their substantial oil and gas deposits, the majority of which are located onshore. Consequently, exploration and production activities prioritize onshore drilling.

Directional Drilling by Application, 2023, 2032 (USD Million)

Directional Drilling Regional Insights

Based on Region, the Directional Drilling market is segmented into UAE, Saudi Arabia, Algeria, Bahrain, Egypt, Morocco, Iraq, Iran, Israel, Kuwait, Oman, Qatar and Rest of Middle East & North Africa. The Saudi Arabia Directional Drilling market held the maximum market share and is also expected to account for the significant revenue share during the forecast period. The directional drilling market in Saudi Arabia is experiencing growth driven by the country's expansive oil and gas sector and its ongoing investment in advanced drilling technologies. Saudi Arabia's strategic focus on enhancing oil recovery and exploring new reserves has spurred increased adoption of directional drilling techniques, which allow for more precise and efficient drilling operations. These technologies enable access to complex reservoirs and optimize production, aligning with Saudi Arabia's vision to maintain its position as a leading global energy provider while improving operational efficiency and resource management.

Directional Drilling Regional Insights, 2023 (USD Million)

Directional Drilling Key Market Players & Competitive Insights

The MENA directional drilling market is projected to register a CAGR of 4.4% during the forecast period. The directional drilling market is driven by the increasing demand for efficient and cost-effective oil and gas extraction methods. Advances in technology, such as rotary steerable systems and measurement while drilling (MWD), enhance precision and reduce drilling time, making directional drilling more attractive. The growth in unconventional oil and gas exploration, such as shale and tight oil, further propels the market as these resources require advanced drilling techniques. Additionally, the need to minimize environmental impact and maximize reservoir recovery drives the adoption of directional drilling technologies, aligning with industry trends towards sustainable and optimized resource management.

The MENA directional drilling market is highly competitive, with key industry players adopting various strategies such as product launches as well as partnership to strengthen their market positions. Most companies in the sector put their primary attention into growing their operations across borders, improving their capabilities, and forming reliable alliances. Market conditions, government assistance, and industry development all influence market participants' ability to flourish.

Directional Drilling Industry Developments

August 2021: Schlumberger announced the introduction of Autonomous Directional Drilling, which includes solutions to steer autonomously through any section of the wellbore. Leveraging an intelligent and dynamic downhole automated control system that instantly interprets and acts on data, Schlumberger continues to advance its digital offering enhancing well construction performance.

January 2024: SLB and Nabors Industries announced a collaboration to scale the adoption of automated drilling solutions for oil and gas operators and drilling contractors. The agreement will enable customers to seamlessly integrate the companies’ drilling automation applications and rig operating systems to deliver improved well construction performance and efficiency.

Key Companies in the Directional Drilling Market includes.

• ADNOC Drilling Company


• Gulf Energy SAOC


• Nabors Industries


• National Energy Services Reunited Corp


• Weatherford International


• OILSERV


• Baker Hughes Company


• ERIELL Group


• Catalana de Perforacions, S.A


• TAQA 

Directional Drilling Market Segmentation:

Directional Drilling Well Type Outlook

• Horizontal


• Extended Reach


• Others

Directional Drilling Rated Drilling Technique Outlook

• Unconventional


• Conventional

Directional Drilling Service Type Outlook

• Logging-while drilling (LWD)


• Tripple Combo


• Non-Tripple Combo


• Measurements-while drilling (RSS)


• Rotary Steerable System (RSS)


• Others

Directional Drilling Application Outlook

• Onshore


• Offshore

Directional Drilling Country Outlook

• UAE


• Saudi Arabia


• Algeria


• Bahrain


• Egypt


• Morocco


• Iraq


• Iran


• Israel


• Kuwait


• Oman


• Qatar


• Rest of Middle East & North Africa