Top Factors Driving the Adoption of Logging While Drilling (LWD) | Fortune Business Insights™

Logging while drilling is an expensive method used to analyze the geological formation of the borewell while drilling. It is used to obtain real-time data that helps to determine the production capabilities of the borewell. Physical properties such as conductivity, porosity, saturation, density, etc., are assessed to optimize the exploration process.

The COVID-19 outbreak has urged energy companies to reduce their drilling and exploration activities. Many companies have reduced their investments in exploration activities due to the disruptions caused by the pandemic. Loss of life, restrictions on travel, social distancing norms, etc., have led to a decline in oil demand. For instance, in December 2020, oil prices dropped by 3% as coronavirus strain gripped the world. However, logging while drilling is one of the essential services used by the oil and gas industry. Moreover, the ever-increasing demand for oil and gas worldwide can cause a remunerative opening for the LWD industry. The global market size for logging while drilling was USD 2.82 billion in 2018 and is projected to reach USD 5.05 billion by 2026, exhibiting a CAGR of 7.6% during the forecast period.

Fortune Business Insights™ identifies the following as the top factors driving the global market of logging while drilling:

1. Escalating Demand for Real-Time Formation Evaluation

LWD offers precise formation evaluation in real-time. Operators can accumulate, assess, and interpret the well using real-time formation evaluation and reduce the complications involved in drilling and production. The advancements in technology have increased the efficiency and precision of the process. The demand for modern and new technologically advanced logging while drilling logs, capable of measuring formation parameters with high accuracy is on the rise. Logging engineers can access boosted telemetry bandwidth and reduced data due to downhole processing in real-time. These factors further escalate the demand for real-time formation evaluation and are expected to drive the market in the upcoming years.

3. Swelling Need for Production Complexity Solutions will Cater to LWD Needs

Logging while drilling serves as a solution to the complexities encountered during production. With the help of LWD, drillers can drill at steep angles above 60˚. This increases the operational and economic advantages of the driller as steep well exploration activities tend to involve high exploration costs. Additionally, the recent technological advancements have massively improved the reliability of LWD data. The services can be deployed in onshore and offshore explorations during harsh conditions while offering precise data to the engineers for interpretation. LWD also assists in performing complex techniques for economically and viably extracting oil and gas from exploration sites. These factors are expected to foster market growth.

3. Rising Offshore Exploration Activities to Increase Scope of Deployment

Technological advancements in exploration and refining equipment and techniques have empowered the oil and gas operators to expand their exploration activities in untapped territory.  The unexplored areas with vast reserves of natural gas or crude oil stand as untapped opportunities for the oil and gas industry. This can lead to a prompt decrease in oil prices, ultimately benefiting the industry. Deep-sea explorations are highly dependent on real-time formation parameters. Logging while drilling assists in the smooth functioning of the wells. Deep-sea explorations involve high costs and high risks, which makes it imperative to use logging while drilling.

4. LWD Production for Industrial Applications May Skyrocket

With the increasing global population and rapid urbanization, energy consumption and production levels are at an all-time high. A majority of power generation is accomplished by burning oil and gas. Due to the growing global population and increasing migration of people from rural to urban areas, the demand for oil and gas is expected to swell to higher levels in the forthcoming years. According to a report by the United Nations, approximately 68% of the world’s total population is anticipated to reside in urban areas by 2050.  This will stimulate the necessity for enriched supply lines, transportation, and expanded production capacities.