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The global managed pressure drilling market size was at USD 3.47 billion in 2018 and is projected to reach USD 4.97 billion by 2026, exhibiting a CAGR of 4.6% during the forecast period.
Contractors are seeking new ways to improve health, safety, and minimize environmental damage while drilling. Managed pressure drilling (MPD) is a reliable and innovative method to enhance safety and keep personnel out of harm’s way. Operators and oilfield service companies are working together to extract hydrocarbons at an economical cost through technological advancement. Increasing concern over safety and growing demand for oil & gas is inflating the demand for the MPD technique.
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Growing Demand for Economical Production to Aid the Market
The complexities involved in drilling, increasing losses, and uncertainty in international crude oil prices are negatively impacting the hydrocarbon industry. Operators and oilfield service companies are discovering innovative and advanced solutions to tackle the various problems arising during a drilling operation. MPD is a highly precise technology used to control wellbore pressure and enhance stability of the well. This ensures flawless production of oil and gas at an economical cost and maximizes the profit ratio.
Surging Demand for Advanced Drilling Techniques to Overcome Wellbore Problems to Fuel the Market
In conventional drilling, several challenges are faced such as complex drilling operations, nearly drained wellbore, and increased nonproductive time, which ultimately increase the overall production cost. Drilling using this drilling method significantly reduces downhole problems, unproductive time, and accurately controls annular wellbore pressure. Thus, oilfield services companies are largely using this technique to mitigate the challenges in drilling, which is projected to drive the managed pressure drilling market trends.
Discovery of New Wells to Impart Positive Market Outlook
Many countries and national oil companies are increasing their capital expenditure (CAPEX) for exploring new wells to increase domestic production. Emerging economies such as India and China are extensively investing in exploring new wells to reduce dependence on oil and gas imports. This type of drilling offers a unique solution to drill a well at an economical cost with high output. Thus, oilfield service companies are using this technique to drill wells to extract and produce enormous volumes of hydrocarbons. Growing popularity of the MPD technique owing to its superior advantages over conventional drilling method is accelerating the managed pressure drilling market growth.
Increasing Investment in E&P Activities to Drive Market Growth
The hydrocarbon industry plays a crucial role in shaping the economic dynamics of the world. Diesel, petrol, and other petroleum products are widely used in manufacturing, chemicals, pharmaceuticals, shipping and aviation, and other industries. Operators are enormously investing in E&P activities to meet the growing demand for oil and gas, which are expected to encourage the drilling of new wells and accelerate the market revenue.
Frequent Fluctuation in Hydrocarbon Prices and Challenging Techniques to Retard Growth
The uncertainly over international crude oil prices and unstable nature of the market are pulling down the expansion of the MPD market demand. Many investors and oil & gas companies are cautious about investing in new projects to avoid significant losses, which is limiting new drillings. Also, there are several challenges involved in implementing a managed pressure drilling method. These challenges include the precise integration of different methodologies such as mechanical, electrical, hydraulics, online monitoring systems, and others. Any failure in these may hamper the overall production and is likely to damage the well. Moreover, a high level of precautionary measures needs to be taken to avoid accidents, blowouts, and environmental damage. All these factors are impeding the growth of the market.
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Constant Bottom Hole Pressure (CBHP) Projected to Lead the Market
The MPD technique has a wide range of applications including high-pressure high-temperature wells, deepwater drilling with lost circulation and narrow drilling window. CBHP ensures a higher level of safety while drilling. It maintains bottom hole pressure consistently above pore pressure and below fractures pressure by applying surface backpressure at the surface. The technique is also used to drill tight margins, which require precise surface backpressure application to maintain bottom hole pressure. Similarly, other managed pressure drilling techniques such as pressurized mud cap drilling (PMCD) and dual gradient drilling are also used to drill fractured carbonates and deep well drilling, the MPD market research suggests.
Stellar Investment in Offshore E&P Activities to Stimulate Offshore Segment
Abundant deepwater reserves hold a wealth of opportunity for oil and gas recovery. For instance, MPD can be used in conjunction with the continuous circulating devices to control wellbore pressure, which enabled the drilling of a difficult section of a deepwater exploration well in Ghana in 2012. Also, growing Capex in recovering untapped hydrocarbon reserves is likely to stimulate the growth in the offshore segment. This type of drilling is successfully used for oil discoveries from offshore high pressure and high-temperature wells in many countries. However, the onshore segment also offers significant growth owing to increase drilling in North America and Asia-Pacific, according to the managed pressure drilling market analysis.
North America Managed Pressure Drilling Market Size, 2018 (USD Billion)
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The market is divided into five regions i.e. North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. Industry leaders are using advanced technologies to reduce the nonproductive time (NPT) and other costs associated with loss circulation. Managed pressure drilling is widely used across the world to precisely control wellbore pressure and enhance wellbore stability. North America is projected to lead the market on account of many companies in the United States are practicing MPD to minimize NPT, which include stuck pipe, wellbore instability, and well control incidents. Moreover, the U.S. is expanding its production capacity to meet its production targets and export oil and gas to surrounding regions. Besides, the recent shell gas revolution and the increasing trend of drilling deepest well will aid North America to dominate the market share for managed pressure drilling. Latin America is also experiencing positive growth on account of growing deep drilling activities in Brazil and Mexico. For instance, Brazilian conglomerate Petrobras set a record for exploratory drilling by attaining water depth at circa 3,000 meters. On the other side, Europe is expected to exhibit reasonable growth owing to the concentration of drilling activities in Norway, the UK, and Russia. These countries contribute considerably to Europe’s MPD market.
Asia-Pacific is one of the promising markets with a positive outlook of the market. Hydrocarbon demand is continuously increasing due to massive demand from infrastructure, population explosion, expansion of aviation and shipping industry among others. To accommodate such a huge amount of demand for oil and gas, India and China are immensely investing in discovering oil and gas reserves. Also, year on year growth in drilling to meet the exponential demand for hydrocarbons is likely to boost the market. The Middle East and Africa region are anticipated to display slight growth in the near future. Saudi Arabia, Angola, UAE, and Nigeria are the key contributors to the expansion of this market.
Rising Deep & Ultra-Deep Drilling Activities to Open New Opportunities for Market Players
Key market players are working on strategies to gain a substantial amount of hydrocarbons at an economical cost. Increasing depth of drilling in several parts of the world is likely to provide lucrative opportunities for oilfield services companies. Managed pressure drilling is one of the reliable and innovative technologies that ensure a high level of safety during deep drilling. Moreover, companies are investing in the development of technologies to offer superior services for economical production of oil and gas. Nabors Industries, Schlumberger, Halliburton, and Weatherford are some of the recognized players in the market who are continuously striving to reduce the cost of production. The inflating demand for conventional fuel on account of tremendous economic growth is set to offer multiple opportunities for industry players.
The oil and gas industry is continuously advancing towards deep wells, complex wells, and high pressure and high temperature (HTHP) wells. Managed pressure drilling is one of the frontier technologies present in the modern era to ease the narrow drilling windows problem. The exponential growth in varied industry verticals is increasing the demand for oil and gas. The precise managed pressure drilling method integrates mechanical, electrical, hydraulics, and gas systems as well as online intelligent equipment monitoring systems to recover substantial amounts of hydrocarbons. On the contrary, conventional drilling is not able to drill at deeper levels, which limits the production of hydrocarbon, whereas managed pressure drilling enhances the overall production of oil and gas. The operators and oil field service companies are reviving their strategies to maximize the profits by deploying highly efficient drilling technology.
The managed pressure drilling market report offers an elaborative analysis of numerous factors affecting the market. These include opportunities, growth drivers, threats, key developments, and restraints. In addition to this, it further helps in analyzing, segmenting, and defining the market based on different segments such as casing type and application. It strategically analyzes several strategies such as product innovations, mergers, alliances, joint ventures, and acquisitions adopted by players in the industry.
An Infographic Representation of Managed Pressure Drilling Market
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Besides this, the report provides a comprehensive analysis of market dynamics, emerging trends, and the competitive landscape of this market. Key insights offered in the report are the adoption trends of residential industry analysis by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, and key industry trends.
Value (USD Billion)
As per Fortune Business Insights study, the market is forecasted to reach USD 4.97 billion by 2026 at a CAGR of 4.6% (2019 -2026).
In 2018, the market size was at USD 3.47 billion and anticipated to reach USD 4.97 billion by 2026 growing at a steady CAGR of 4.6% during the forecast period (2019 -2026).
Offshore segment is likely to lead the market on account of growing investment in deepwater and ultra-deepwater exploration.
The market size in North America stood at USD 1.08 billion in 2018.
Surging demand for advanced drilling technologies to reduce the production cost is a key factor driving the market.
Some of the top players in the market are Nabors Industries, Schlumberger, Halliburton, and Weatherford.
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