The “Directional Drilling Services Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” report has been added to ResearchAndMarkets.com’s offering.
The directional drilling services market is expected to grow at a CAGR of approximately 6% during the forecast period 2022-2027.
The COVID-19 outbreak witnessed a severe impact on the market due to stringent lockdown protocols implemented by respective governments. Factors such as drilling in unconventional reserve, which involves directional or horizontal drilling to increase contact with the pay zone, as well as increase the production significantly are expected to drive the directional drilling services market during the forecast period.
Moreover, global crude oil demand is expected to grow by 1.2 mb/d in the next four years, further increasing pressure among the top oil and gas operating companies to increase their production is promulgating the market. However, the volatile crude oil prices and low investments in regions excluding North America is likely to hinder the growth of the market being studied.
Companies Mentioned
Schlumberger Ltd
Weatherford International PLC
Halliburton Company
Baker Hughes Company
Scientific Drilling International Inc. (SDI)
China Oilfield Services Limited
PHX Energy Services Corp.
Gyrodata Inc.
Nabors Industries Ltd
Leam Drilling Systems Inc.
Key Market Trends
Offshore Segment Expected to Witness Significant Growth
The offshore oil and gas industry accounts for about 30% of the global crude oil production. The Middle East, North Sea, Brazil, the Gulf of Mexico, and the Caspian Sea are the major offshore oil and gas producing regions.
Declining costs of oil production with more significant cost savings make deepwater the economical source of supply. The average breakeven price for all unofficial projects has come down to approximately USD 50 per barrel, declining close to 10% in the last years. This scenario is likely to raise the demand for directional drilling services in deepwater during the forecast timeline.
The deepwater oil production is majorly concentrated in four countries, Angola, Brazil, Nigeria, and the United States. Significant offshore reserves are likely to institute a favorable business scenario for the industry participants operating in the directional drilling services market in the near future.
The combined production from tight oil, oil sands, and deepwater is estimated to reach 21 mb/d by 2040 and is expected to account for almost a quarter of the global crude oil production. The changing economics and the exhaustion of some shallow offshore resources have compelled the producers to shift toward deepwater and ultra-deepwater resources.
Therefore, owing to the above points, offshore segment is expected to witness a significant growth in directional drilling services market during the forecast period.
North America Expected to Dominate the Market
Mainly owing to the demand from the United States and Canada, North America leads the directional drilling services market and is expected to be the largest market as of 2020.
The United States has one of the largest technically-recoverable shale gas reserves, and the second-largest tight oil reserves in the world. The technological development in the hydraulic fracturing and low breakeven prices have supported the oil and gas directional drilling activity in the region.
In the United States, the directional drilling services market is primarily driven by new offshore projects and redevelopment of matured fields. Due to the recovering drilling activity, the gas output is expected to reach an average of 47 billion cubic foot per day by 2020. The production from Marcellus/Utica shale and new oil wells is expected to account for most of the growth in gas production.
In Canada, the biggest increase in activity is expected from the country’s main crude oil and gas producing region, Alberta. Consequently, the directional drilling services market is estimated to grow at a moderate pace in Canada.
Therefore, rapid growth in the drilling activities and the increase in many horizontal wells in the region are expected to drive the directional drilling services market during the forecast period.
Key Topics Covered:
1 INTRODUCTION
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY
4 MARKET OVERVIEW
4.1 Introduction
4.2 Shale Reserve by Country
4.3 Technological Advancement in Directional Drilling
4.4 Market Size and Demand Forecast in USD billion, till 2027
4.5 Onshore CAPEX Forecast in USD billion, till 2027
4.6 Offshore CAPEX Forecast in USD billions, by Regions, 2019-2027
4.7 Key Upstream Projects
4.8 Recent Trends and Developments
4.9 Market Dynamics
4.9.1 Drivers
4.9.2 Restraints
4.10 Supply Chain Analysis
4.11 Porter’s Five Forces Analysis
5 MARKET SEGMENTATION
5.1 Location of Deployment
5.1.1 Onshore
5.1.2 Offshore
5.2 Type
5.2.1 Rotory Steerable System (RSS)
5.2.2 Conventional
5.3 Geography
5.3.1 North America
5.3.2 Asia-Pacific
5.3.3 Europe
5.3.4 South America
5.3.5 Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
Source: Business Wire
