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  • Published On : Nov 2022
  • Code : CMI999
  • Industry : Energy
  • Pages : 130
  • Formats :

Drill bits are essential tools that are utilized in the oil and gas industry to drill cylindrical boreholes for E&P activities in the production of crude and gas. Drill bits produce drill cuttings when used in for the formation of boreholes. The cuttings that are formed by the bit are usually removed from the wellbore and brought to the surface through circulation.

Global oilfield drill bits market was valued at US$ 8.23 Bn in 2021 in terms of revenue, exhibiting a CAGR of 5.57 % during the forecast period (2022 to 2030).

Drivers

The increasing dependence on crude oil and natural gas, especially in emerging economies has resulted in an increase in E&P activities globally. The type of drill bit to be used for drilling depends on the nature of the formation. The drill bit has a typical rotary motion and is situated at the tip of the drill string, underneath the drill pipe and collar. It is usually made up of 2 or 3 cones with materials having a higher degree of hardness, such as tungsten carbide, steel and natural or artificial diamonds and have sharp teeth that can easily penetrate into the required structure.

The decrease in crude oil prices coupled with the increasing pollution due to these fossil fuels is a major restraint for the growth of the global oilfield drill bits market. The increasing regulations being adopted by nations in order to reduce their carbon footprint is expected to hamper the growth of the global oilfield drill bits market.

Globally expanding energy consumption has resulted in a rapid expansion in offshore drilling activities to meet that demand, which has given the drilling bits industry a considerable boost. Furthermore, fresh oil reserve finds will increase Drilling Bits Market Growth and Drilling Bits Market Value. The drilling bit market is predicted to benefit from increased initiatives and funding for effective product development processes to reduce replacement cost and time, as well as a longer life cycle. Drilling bits are predicted to rise significantly throughout the projection period, because of increased oil and gas exploration activity in recent years.

The COVID-19 outbreak has had detrimental effects on the global economy as many industries have been affected by the current circumstances, and operations of various sectors have come to a standstill. In the oil & gas industry, companies are dealing with several challenges due to a decline in oil prices post the COVID-19 outbreak. In the U.S., the consumption of petroleum products has fallen to its lowest level in decades because of measures that limit traveling and the general economic slowdown induced by mitigation efforts for the COVID-19. The U.S. EIA estimates the decline in petroleum product demand by examining the changes in the total products supplied. In the week ending April 3rd, 2020, the total U.S. product supplied of petroleum products fell by 3.4 million barrels per day, the largest weekly decline in EIA’s data series. This would affect the operations of drilling equipment as this equipment are useful for oil and gas extraction processes and further transform crude oil into useful petroleum products.

Figure 1. Global Oilfield Drill Bits Market Value Share (%), By Region, 2021

Oilfield Drill Bits  | Coherent Market Insights

Market Restraints

Environmental dangers and rigorous government drilling regulations, as well as a growing focus on renewable energy, may restraint the industry Drilling Bits Market Size. The Drilling Bits Market Size is projected to be restrained by strict government rules governing onshore drilling activity. High manufacturing costs, combined with variable raw material prices, are a major stumbling block to the global oilfield Drilling Bits Market Share. Other factors expected to stifle expansion of the worldwide oilfield drilling bits market over the forecast period include a drop in crude oil prices and strict government restrictions aimed at reducing carbon emissions.

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Oilfield Drill Bits Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 8.23 Bn
Historical Data for: 2017-2020 Estimated Year: 2022
Forecast Period 2022 to 2030 CAGR: 5.57 % Forecast Period: 2022-2030
Geographies covered:
  • Region: North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Segments covered:
  • By Drill Bit Type:  Roller Cone Bits and Fixed Cutter Bits
  • By Application: Onshore and Offshore 
Companies covered:

Baker Hughes Inc., Drill Master Inc, Ulterra Drilling Technologies, National Oilwell Varco Inc., Halliburton Inc., Schlumberger, Atlas Copco AB and Scientific Drilling International Inc. 

Growth Drivers:
  • Increasing demand for energy
  • New oil reserve discoveries increase
Restraints & Challenges:
  • Environmental dangers and rigorous government drilling regulations, as well as a growing focus on renewable energy, may restraint the industry drilling bits market size

Market Trends

  • North America comprises emerging economies with substantial oil and gas resources. The U.S. is one of the largest crude oil and natural gas producers, which accounted for more than 18% and 23% of global oil and gas production, respectively, in 2020. The production has surged after 2017, mainly due to robust drilling in its shale reserves, led by the Permian Basin.
  • As the demand for drill bits is directly related to the upstream oil & gas activities, increased oil and gas exploration and production has resulted in higher demand for drill bits in the United States.

Figure 2. Global Oilfield Drill Bits Market value Share (%), By Drill Bit Type, 2021

Oilfield Drill Bits  | Coherent Market Insights

Recent Developments

  • In January 2022, the Chinese state-owned national oil company CNOOC Ltd planned to drill 227 offshore exploration wells and 132 onshore unconventional exploration wells and acquire about 17,000 sq km of 3D seismic data. In China, thirteen new projects are expected to come online in 2022, including the Bozhong 29-6 oil field development, Kenli 6-1 oilfield Block 5-1, 5-2, 6-1 development, Enping 15-1/10-2/15-2/20-4 joint development, and Shenfu South gas field development. Other projects include Liza Phase II in Guyana and 3M (MDA, MBH, MAC) in Indonesia. CNOOC's total capital expenditure for 2022 is budgeted to be around CNY 90-100 billion. The capital expenditures for exploration, development, production, and others will account for about 20%, 57%, 21%, and 2% of total capital expenditures, respectively.
  • In March 2021, Saudi Aramco planned to increase its capital expenditure in the upstream sector to around US$ 35 billion in 2021 from US$ 27 billion in 2020. Such a scenario in 2021 had a positive impact on the market studied.

Competitive Section

Major players operating in the global oilfield drill bits market include Baker Hughes Inc., Drill Master Inc, Ulterra Drilling Technologies, National Oilwell Varco Inc., Halliburton Inc., Schlumberger, Atlas Copco AB and Scientific Drilling International Inc., among others.

Oilfield drill bits are important tools used in the drilling of boreholes in the exploration of oil and gas activities. The drill bits are selected depending on the type of formation that is being drilled. Drill bits produce drill cuttings which can be removed later using drilling mud. Irrespective of type of drill bit, these bits need to suffice two main conditions that include maximizing the formations rate of penetration (ROP) while providing a long and sturdy service life.

Market Dynamics

Growing demand for oil and is, in turn, fuelling growth of global oilfield drill bits market. The rising demand for crude oil to be used as fuel, coupled with the recovering oil and gas industry globally is expected to propel demand for oilfield drill bits globally.

Key features of the study:

  • This report provides in-depth analysis of the global oilfield drill bits market, market size (US$ Billion), and Cumulative Annual Growth Rate (CAGR %) for the forecast period (2022– 2030).
  • It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market. It provides valuable insights about market drivers, restraints, opportunities, new product launches or approval, pipeline products, regional outlook, and competitive strategy adopted by the leading players.
  • It profiles leading players in the global oilfield drill bits market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, key developments, and future plans.
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions with respect to their future product launch, market expansion, and marketing tactics.
  • The global oilfield drill bits market report caters to various stakeholders in this industry, including investors, product developers, distributors, oil and gas companies and service provider companies.
  • Stakeholders would greatly benefit in decision-making through the various strategy matrices used in analyzing the global oilfield drill bits market.

Detailed Segmentation:

  • Global Oilfield Drill Bits Market, By Drill Bit Type
    • Roller Cone Bits
    • Tungsten Carbide Insert Bits
    • Milled Tooth Bits
    • Fixed Cutter Bits
    • Polycrystalline Diamond Compact (PDC) Drill Bits
    • Impregnated Bits
    • Diamond Bits
  • Global Oilfield Drill Bits Market, By Application:
    • Onshore
    • Offshore
  • Global Oilfield Drill Bits Market, By Geography:
    • North America
      • U.S.
      • Canada
    • Europe
      • U.K.
      • Germany
      • Italy
      • Denmark
      • Norway
      • Russia
      • Rest of Europe
    • Asia-Pacific
      • China
      • India
      • Japan
      • ASEAN
      • Australia
      • South Korea
      • Rest of Asia Pacific
    • Latin America
      • Brazil
      • Mexico
      • Argentina
      • Rest of Latin America
    • Africa
      • Nigeria
      • Angola
      • Algeria
      • Libya
      • Gabon
      • Rest of Africa
    • Middle East
      • Saudi Arabia
      • Israel
      • UAE
      • Rest of Middle East
  • Company Profiles
    • Baker Hughes Inc.*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Drill Master Inc.
    • Schlumberger
    • Halliburton Inc.
    • National Oilwell Varco Inc
    • Ulterra Drilling Technologies
    • Atlas Copco AB.
    • Scientific Drilling International Inc.

Frequently Asked Questions

Global oilfield drill bits market was valued at around US$ 8.23 Bn in 2021.
The market was valued at US$ 8.23 Bn in 2021 in terms of revenue, exhibiting a CAGR of 5.57 % during the forecast period (2022 to 2030).
The unique extended-reach horizontal shale drilling application has created a new set of specific challenges.
Increasing demand for crude oil and natural gas globally is one of the major factors that is expected to propel growth of the market over the forecast period.
Major players operating in the market include Baker Hughes Inc., Drill Master Inc, Ulterra Drilling Technologies, National Oilwell Varco Inc., Halliburton Inc., Schlumberger, Atlas Copco AB and Scientific Drilling International Inc., among others.
The market is estimated to grow at around 5.57 % CAGR in the forecast period (2022-2030).

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