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
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.
| 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: |
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| Segments covered: |
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| 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. |
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| Restraints & Challenges: |
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Market Trends
Figure 2. Global Oilfield Drill Bits Market value Share (%), By Drill Bit Type, 2021
Recent Developments
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:
Detailed Segmentation:
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