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Directional Drilling Services Market
"Actionable Insights to Fuel Your Growth"
"Actionable Insights to Fuel Your Growth"
The global directional drilling services market size was valued at over USD 9 Billion in 2018 and is projected to reach more than USD 18 Billion by the end of 2026, exhibiting a CAGR of 9.52% in the forecast period.
Rising demand for various oil and gas products across the globe along with increasing discoveries of new bulk potential reservoirs is expected to propel the demand for directional drilling services and expand the market size. Different companies are thoroughly growing investments in the exploration & production activities to cater to the exponentially rising demand.
Directional drilling services involve methods to efficiently drill a well and maximize the output by laterally producing through the well. It includes numerous techniques that deliver power and directional inclination to the bit. A well drilled directionally usually has a hole geometry divided into three parts, including kick-off, hold, and drop. Kick-off denotes a point where the systems start to deflect the bit, hold consists of holding the bottom hole assembly in that azimuth to build up the angle, and drop finally includes dropping the bit to final angle to reach the pay zone.
The technology offers numerous benefits including flexibility, minimum site restoration, low soil contamination, low risk for geological abnormalities, and quicker installation with lower costs, which bodes well for the directional drilling services market.
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Increasing E&P activities at different locations coupled with advanced techniques adaptability to drill multiple wells from a single location to deliver maximum output with minimum downtime is set to further propel the industry outlook and elevate the need for directional drilling services.
Overall costs can be significantly reduced by dropping the maintenance and non-operational rig downtime, substantially boosting the directional drilling services market revenue. Large systems operate for longer durations and thereby needs different services to effectively drill and produce oil & gas over time.
Directional drilling services include measurement while drilling (MWD), logging while drilling (LWD), rotary steerable systems (RSS), mud motors, and various others. In MWD, different measurement tools are incorporated in the drill string to receive continuous information while maintaining the deflection angle for precise hole geometry.
Mud motor uses a stator/rotor arrangement to provide power to the bit and is generally operated on the basis of their length, fluid volume requirement, and output torque. These positive displacement motors typically use a set of deviation tools like bent housing or bent sub and maintain trajectory by deflecting the bit and thereby pointing it towards the target zone.
"Increasing Efforts to Gain Real-Time Monitoring Is Set to Boost LWD and MWD Segment Outlook"
Logging While Drilling (LWD) and Measurement While Drilling (MWD), critical components of directional drilling services, are the techniques utilized to gain dimensions of the wellbore during drilling operations and conveys the collected data to the surface using various logging tools. Rising attempts to effectively drill deep formations with minimal risks and simultaneously regularly monitor the downhole conditions for enhanced understandings is expected to propel the segment in the directional drilling services market landscape.
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These systems are situated in the bottom hole assembly (BHA) to transfer complete or partial information in terms of pulses to the surface where the collected data is interpreted for final uses. This assembly enables the operators to drill multiple directional wells from a single location as they successfully provide previous well data variation with accurate depth details in the current formation.
Rotary Steerable Systems (RSS) provides an extensive range of directional movement capability along with providing significant power to the bit. The global directional drilling market stands to gain as these systems considerably increase the wellbore ability to reach the desired target by significantly reducing stuck cuttings risks, nonproductive time (NPT), and enhancing the steering operations.
"Rising Inclination towards Producing from Complex Reserves Will Drive Rotary Steerable System Market Growth
Rotary Steerable Systems (RSS) type of directional drilling services is operated on both offshore and onshore wells to impart and maintain trajectory. Ability to drill long horizontal wells with a high angle of inclination even in complex formations is expected to substantially affect the market size. Different other services like MWD are readily deployed with RSS drilling method to enable operating personnel to provide the desired direction. It operates by using a geo-steering which rotates the drill pipe and thereby pushing & pointing the bit in particular azimuth. Pushing the bit is done to attain inclination, and after that, hydraulic or mechanical forces are used to point the bit to drill deeper formations.
While conventional directional drilling services deploy mud motors, whipstocks, specialized BHA components, specific drill bits, and various other equipment to deviate the wellbore. Drillers uses rotating speed and weight on bit to deflect the bit in the direction of the reservoir pay zone. Low operation cost, basic technical constraints, less complicated components, and efficient drilling of low angle wells in easy formations will cater to the conventional market growth across the globe.
"Onshore Location Is Likely to Dominate During the Forecast Period"
Easy drilling methods, low drilling cost, vast resource availability, low operating cost, and various other factors are anticipated to positively affect the onshore industry landscape, and, in turn, the directional drilling services market. Over the decades, bulk sized conventional and unconventional reservoirs have been discovered in the onshore assets. Development of new technologies like multi-pad drilling, which enables to drill wells in a pad like structure in a combination ranging between 2 to 24, will further enhance the market scenario for directional drilling services. Increasing focus to dig more wells from a single platform to curb the overall drilling and completion pricing and simultaneously increase output is projected to propel the offshore market demand. This method also allows to minimize the environmental impact and access multiple target zone by sidetracking various formation abnormalities, auguring well for the market.
"North America Is Projected to Hold Major Share During the Forecast Timeframe"
North America holds the lion's share in the market. Low drilling cost and advanced technological availability along with the presence of abundant reserves in onshore and offshore fields are set to positively affect the regional market share. The Asia Pacific is projected to account for a significant portion of the directional drilling services market share owing to increasing energy demand and rising E&P activities in the emerging countries to suffice the rapidly growing energy demand.
An increasing number of drilled wells in countries like India, Indonesia, and Thailand, along with bulk discoveries in different locations will positively shape the industry trend. Middle East and Africa are expected to witness substantial growth over the forecast period owing to large offshore assets, low E&P costs, less depth oil & gas presence, and bulk production operations due to favorable organizational policies.
North America Directional Drilling Services Market Share (US$ Mn), 2018
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In October 2018, the state-owned company, Qatar Petroleum, announced to develop existing capabilities to increase its production capacity to 6.5 from 4.8 million barrels of oil per day. Latin America is anticipated to hold second-largest growth rate among the regions in the market due to the presence of huge untapped potential of unconventional reserves along with lucrative opportunities for O&G exploration in various countries with bulk reservoirs.
The global market has various players across the globe, shaping the market trends. Schlumberger is working with long-standing experience in providing various services for efficient directional drilling and completion operations. Other major players in the global market are Baker Hughes, a GE company, Weatherford, Nabors Industries, Halliburton, National Oilwell Varco, Leam Drilling Systems LLC, Jindal Drilling & Industries Limited, Gyrodata, China Oilfield Services Limited, Phoenix Technology Services, Scientific Drilling, AlMansoori Specialized Engineering, NewTech Services, and Integra.
Directional drilling is a technique to laterally or horizontally drill an oil or gas well using various tools and equipment to increase fossil fuel production with less geological constraints. Abundantly present onshore reserves and increasing offshore discoveries along with a continuous focus to drill deeper and complex is set to positively contribute to the market potential. It is an integral part of the O&G industry and consists of drilling at multiple angles to reach and penetrate the pay zone at an efficient location. The technology allows developing multiple wells from a single platform or location to maximize the output with minimum environmental influence, augmenting the directional drilling services market growth. This method requires different services to monitor and comprehend accurate real-time data to overcome numerous challenges and efficiently drill the number of wells in the same formation. The services majorly include LWD, MWD, RSS, mud motors, and many more, which enable the platforms to drill extended reach wells with steep angles and more difficulties. The non-vertical wells are drilled majorly to produce through multiple targets and sidetrack the abnormal pressure zones like salt domes or geological faults, and sometimes to drill a relief well to kill the abrupt pressured well.
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The report provides qualitative and quantitative insights on the market and detailed analysis of market size & growth rate for all possible segments in the market. The market is segmented by location, type, services, and geography. On the basis of location, the market is segmented into Onshore and Offshore. Based on the type, the global market has been bifurcated into Conventional and Rotary Steerable Systems (RSS). On the basis of services, the global market is further divided into Measurement While Drilling (MWD), Logging While Drilling (LWD), Rotary Steerable Systems (RSS), Mud Motors, and Others. Geographically, the global market is segmented into five major regions, namely, North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The regions are further categorized into countries.
Along with this, the report provides elaborative analysis of the dynamics and competitive landscape of the directional drilling services industry. Various key insights presented in the report are the recent industry developments such as mergers & acquisitions, the regulatory scenario in key countries, investment scenario, technological advancement, and key industry trends.
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Fortune Business Insights says that the directional drilling services market was valued at USD 9 billion in 2018
The directional drilling services market is projected to reach USD 18 billion by 2026.
Growing at a CAGR of 9.52%, the directional drilling services market will exhibit significant growth over the forecast period.
North America directional drilling services market was valued over USD 3.7 billion in 2018.
Onshore location is anticipated to be the leading segment in the directional drilling services market during the forecast timeframe.
New discoveries of large O&G reserves along with rising demand for petroleum products will be the key market drivers. However, adoption of alternate energy generation technologies may affect industry growth.
Weatherford, Schlumberger, Baker Hughes, Halliburton, National Oilwell Varco are among the top players in the directional drilling services market.
The technology delivers improved oil & gas production over time with low risks & cost-effective operations to feasibly suffice petroleum products needs. Hence, increasing energy demand will boost the adoption of directional drilling services.
