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  • Published On : Dec 2021
  • Code : CMI4823
  • Industry : Energy
  • Pages : 120
  • Formats :

Drill bits are used in the oil &gas industry in the drilling application to create holes or crush or cut rocks in order to extract hydrocarbon resources, by applying hydraulic pressure and high-frequency vibration. Drill bits are basically produced from Tungsten, Carbide, and Diamond. Moreover, the drill bits are classified into fixed cutter bits and roller cone cutter bits.

The global drill bits for oil and gas industry application market is estimated to be valued at US$ 14,218.2 million in 2021 and is expected to exhibit a CAGR of 5.5% over the forecast period (2021-2028).

Recent Developments:

  • In July 2021, Halliburton and Schlumberger secure drilling contract with ADNOC with $ 763.7 million investment to support capacity expansion.
  • Iraq has launched a new project aimed at extracting the gas that normally ignites when producing oil in two oil fields in the southern part of the country.
  • In November 2019, abu dhabi national oil energy company launches rig fleet expansion program for increase drilling for conventional oil and gas and significantly increase the number of non-conventional wells as we increase our oil production capacity

Figure 1. Global Drill Bits For Oil and Gas Industry Application Market Value (US$ Mn), by Region, 2020

Drill Bits for Oil & Gas Industry Application  | Coherent Market Insights

North America (Region) held dominant position in the global drill bits for oil and gas industry application market in 2020, accounting for 38.06% share in terms of volume, followed by RoW and Europe, respectively.

The increased demand for natural gas has as well as increased oil and gas exploration and production led to an increase in shale gas exploration efforts all over the world. They're being done to help the environment by reducing carbon emissions. The majority of shale gas activity is centred in North America.

Global Drill Bits for Oil and Gas Industry Application Market: Drivers

Ongoing technological advancement in the oil &gas industry is projected to augment the market growth of the drill bits for oil and gas industry applications. Horizontal drilling and hydraulic fracturing (a type of drilling used for shale gas are some of the types of advanced technology used in the oil &gas industry. These advanced techniques help in increasing the output of crude oil and other liquid hydrocarbons. Thus advancement in the technology is projected to foster the market growth of the drill bits.

Increasing production of crude oil due to the growing demand for petroleum products is expected to drive the market growth. According to the U.S. Energy Information Administration, global consumption of petroleum and liquid fuels averaged 94.3 million b/d in August 2020. Moreover, it expects that global liquid fuels production will rise to an annual average of 99.3 million b/d in 2021. Thus growing demand for petroleum products is projected to fuel market growth.

Global Drill Bits for Oil and Gas Industry Application Market: Opportunities

New oilfield discoveries is expected to create enormous market opportunities over the forecast period. According to the French Institute of Petroleum, in total, 140 discoveries were made globally in 2018, and gas resources accounted for about 40% of the volumes found. Offshore discoveries predominated, with 70% of the new volumes found over the year. Only four discoveries were of unconventional hydrocarbons. They accounted for 7% of the resources discovered in 2018.

Increasing onshore drilling activities across developing regions is projected to serve major market opportunities. In 2018, 67,000 wells were drilled onshore and 2,300 offshore. In 2018, in the United States, there were 15,000 horizontal wells drilled for gas and shale oil, representing more than 20% of global drilling activity. Thus, growing onshore drilling activities is projected to favor the market growth of the drill bits for oil and gas industry applications over the forecast period. 

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Drill Bits for Oil and Gas Industry Application Market Report Coverage

Report Coverage Details
Base Year: 2020 Market Size in 2021: US$ 14,218.2 Mn
Historical Data for: 2017 to 2020 Forecast Period: 2021 to 2028
Forecast Period 2021 to 2028 CAGR: 5.5% 2028 Value Projection: US$ 22,680.7 Mn
Geographies covered:
  • Region: North America, Europe, Asia-PacificRoW 
Segments covered:
  • By Product: Roller cone bits, Milled-tooth bits, Tungsten carbide inserts (insert bits), Fixed cutter bits, Polycrystalline diamond bits (PDC) and Natural diamond bits
Companies covered:

Atlas Copco, Varel International Inc., Baker Hughes, Inc., Smith International, Inc. , National Oil-well Varco Inc., Halliburton Inc., Scientific Drilling International Inc., Torquato Drilling Accessories Inc., Kingdream Public Limited Company, Tercel oilfield Product

Growth Drivers:
  • Ongoing technological advancement in the oil & gas industry
  • Increasing production of crude oil due to the growing demand for petroleum products
Restraints & Challenges:
  • Gap in supply and demand due to fluctuating price of raw materials used in the creation of drill bits
  • High maintenance cost and transition time of the drilling tool

Market Trends:

Continuous product innovation by key manufacturers is a growing trend in the market. For instance, in September 2017, Halliburton announced the launch of GeoTech HE™, a robust drill bit that incorporates new features and materials to deliver enhanced performance and increased reliability in high-energy drilling systems characterized by very high weight-on-bit and drilling torque.

The growing number of crude oil production projects is one of the major trends in the market. Also, increasing export and import of crude oil is further anticipated to augment the market growth. In 2019, the Canadian supply and demand of crude oil slightly increased from 2018 with the production of 4.7 MMb/d. The market was the values of imports and exports of 0.8 MMb/d and 3.8 MMb/d respectively. Thus growing export and import of the crude oil is projected to drive the market to grow

Figure 2. Global Drill Bits for Oil and Gas Industry Application Market Share, By Product, 2020

Drill Bits for Oil & Gas Industry Application  | Coherent Market Insights

Key Takeaways of the Graph:

  • Among By Product, the fixed cutters bits held dominant position in the market and accounted for 29.69% share in the global drill bits for oil and gas industry application market in 2020.

Fixed cutters bits work well in shale formations, especially when combined with oil-based muds and cutter to shale rock with a continuous scraping motion.

Global Drill Bits for Oil and Gas Industry Application Market: Restraints

The fluctuating price of raw materials used in the creation of drill bits is leading to the gap in supply and demand. This is a factor that is projected to hinder the market growth of the drill bits for oil and gas industry applications.

High maintenance cost and transition time of the drilling tool are expected to limit the adoption across end-user which is expected to hamper the market growth over the forecast period. Also, increasing focus on renewable energy sources is expected to hamper the market growth of the drill bits for oil and gas industry applications.

Global Drill Bits for Oil and Gas Industry Application Market: Competitive Landscape

Major players operating in the global drill bits for oil and gas industry application market include, Atlas Copco, Varel International Inc., Baker Hughes, Inc., Smith International, Inc., National Oil-well Varco, Inc., Halliburton Inc., Scientific Drilling International Inc., Torquato Drilling Accessories Inc., Atlas Copco., and Kingdream Public Limited Company.

Competitive Section:

  • Company Names
    • Atlas Copco
    • Varel International Inc.
    • Baker Hughes, Inc.
    • Smith International, Inc.
    • National Oil-well Varco Inc.
    • Halliburton Inc.
    • Scientific Drilling International Inc.
    • Torquato Drilling Accessories Inc.
    • Kingdream Public Limited Company
    • Tercel oilfield Product

A drilling bit is used in petroleum exploration to drill a wellbore through various layers of rock formations to access oil or natural gas resources. It penetrates the subsurface rock formations. In recent years, oilfield drilling has turned out to be an intricate part of the overall oil industry strategy. Today, exploration and extraction of crude oil from the ground is crucial for any company involved in oil and gas business.

Market Dynamics:

Increasing number of gas processing units is expected to propel growth of the global drill bits for oil and gas industry application market. For instance, in October 2021, PJSC LUKOIL, a crude petroleum and natural gas extraction company, announced to add a second gas processing unit that will enable increased production of petrochemicals from northern Caspian Sea natural gas at subsidiary Stavrolen LLC’s petrochemical complex in Budennovsk, Stavropol Region, and Russia.

Moreover, increasing demand for drilling is also expected to aid in growth of the market. For instance, in October 2021, Equinor Energy AS, an energy company, amounted a contract to COSL Offshore Management AS, a drilling services provider, to drill four wells on Statfjord Øst, in the Tampen area in the North Sea, starting in spring 2023.

Key features of the study:

  • This report provides in-depth analysis of the global drill bits for oil and gas industry application market, and provides market size (US$ Million ) and compound annual growth rate (CAGR%) for the forecast period (2021–2028), considering 2020 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends,  regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global drill bits for oil and gas industry application market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies
  • Key companies covered as a part of this study include Atlas Copco, Varel International Inc., Baker Hughes, Inc., Smith International, Inc., National Oil-well Varco, Inc., Halliburton Inc., Scientific Drilling International Inc., Torquato Drilling Accessories Inc., and Kingdream Public Limited Company
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
  • The global drill bits for oil and gas industry application market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global drill bits for oil and gas industry application market

Detailed Segmentation:

  • Global Drill Bits for Oil and Gas Industry Application Market, By Product Type:
    • Roller cone bits
    • Milled-tooth bits
    • Tungsten carbide inserts (insert bits)
    • Fixed cutter bits
    • Polycrystalline diamond bits (PDC)
    • Natural diamond bits
  • Global Drill Bits for Oil and Gas Industry Application Market, By Region Type:
    • North America
      • By Product:
        • Roller cone bits
        • Milled-tooth bits
        • Tungsten carbide inserts (insert bits)
        • Fixed cutter bits
        • Polycrystalline diamond bits (PDC)
        • Natural diamond bits
      • By Sub region
        • Canada
        • U.S.
    • Europe
      • By Product:
        • Roller cone bits
        • Milled-tooth bits
        • Tungsten carbide inserts (insert bits)
        • Fixed cutter bits
        • Polycrystalline diamond bits (PDC)
        • Natural diamond bits
      • By Sub region
        • U.K.
        • Germany
        • Italy
        • France
        • Spain
        • Russia
        • Rest of Europe
    • Asia-Pacific
      • By Product:
        • Roller cone bits
        • Milled-tooth bits
        • Tungsten carbide inserts (insert bits)
        • Fixed cutter bits
        • Polycrystalline diamond bits (PDC)
        • Natural diamond bits
      • By Sub region
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • RoW
      • By Product:
        • Roller cone bits
        • Milled-tooth bits
        • Tungsten carbide inserts (insert bits)
        • Fixed cutter bits
        • Polycrystalline diamond bits (PDC)
        • Natural diamond bits
  • Company Profiles
    • Atlas Copco
    • Varel International Inc.
    • Baker Hughes, Inc.
    • Smith International, Inc.
    • National Oil-well Varco Inc.
    • Halliburton Inc.
    • Scientific Drilling International Inc.
    • Torquato Drilling Accessories Inc.

Frequently Asked Questions

Ongoing technological advancement in the oil & gas industry and increasing production of crude oil due to the growing demand for petroleum products are factors boosting adoption of drill bits for oil and gas industry application.
Gap in supply and demand due to fluctuating price of raw materials used in the creation of drill bits and high maintenance cost and transition time of the drilling tool are factors hindering growth of the market.
The market was valued at US$ 13,377.6 million in 2020.
Fixed cutters bits (sub segment) held dominant position in the market in 2020.
Launch of new products and growing number of crude oil production projects are major trends in the market.
International Inc., Torquato Drilling Accessories Inc., and Kingdream Public Limited International, Inc., National Oil-well Varco, Inc., Halliburton Inc., Scientific Drillin market include, Atlas Copco, Varel International Inc., Baker Hughes, Inc., Smith Major players operating in the global drill bits for oil and gas industry application.

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