Directional Drilling Solutions & Services Market to Surpass US$ 18.3 Billion by 2026

Published On : Mar 20, 2019

The global directional drilling solutions & services market was valued at US$ 8.5 billion in 2017, and is projected to reach US$ 18.3 billion by 2026, registering a CAGR of 8.6% over the forecast period (2018-2026), according to Directional Drilling Solutions & Services Market Report, by Solution (New Purchase and Rentals), by Services (Measurement-while-drilling (MWD) Services, Logging-while-drilling (LWD) Services, Rotary Steerable System (RSS) Services, Repair & Maintenance Services, and Consulting & Other Services), by Application (Onshore and Offshore), and by Region (North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa) published by Coherent Market Insights.

Increasing population is leading to high demand for energy, which in turn is propelling demand for new oil fields in the market. Several companies are investing in exploration of new oil fields to increase their profit margins, sustain in the competitive market, and gain a competitive advantage in the market. For instance, in March 2017, Repsol S.A. — a Spain-based oil producer— along with its privately-held partner— Armstrong Energy, Inc.— announced new oilfield discovery of conventional oil in Alaska's North Slope. Moreover, in July 2018, China National Petroleum Corporation (CNPC) and Sinopec— as part of a government initiative to boost domestic energy supply— are raising investments to increase local oil and gas production and are also accelerating drilling at tight oil and gas formations in western China. Therefore, increasing oilfield discoveries are expected to fuel demand for directional drilling services, thereby boosting the market growth.

Directional drilling industry has experienced a rapid paradigm shift in the recent past, due to technological advancements in directional drilling. Drilling technique has gained significant traction in the oilfields worldwide, owing to its use in drilling inaccessible surface locations and multiple wells from single location and in hitting multiple target zones. For instance, in September 2018, the Ditch Witch Organization launched JT20XP directional drill package that is featured with JT20XP drill and XP44 mixing system. This system offers a productive solution for larger jobs, while retaining a small, compact footprint and offers superior productivity for larger utility-installation jobs.

Technological advancements in directional drilling such as measurement while drilling (MWD) and logging-while-drilling (LWD) are increasing being preferred by service providers and are expected to contribute to the market growth. For instance, in June 2017, Motive Drilling Technologies, Inc. designed an automated decision-making through the directional drilling bit guidance system and applied it to 2 million feet drillings for oil and gas drilling companies in North America to offer better efficiency and accuracy in time.

However, stringent regulatory policies and increasing environmental concerns are expected to restrain the market growth over the forecast period. Increasing use of directional drilling has led to growing concerns about its potential impacts on public health and the environment, including impacts arising from improper management of oil waste from offshore exploration and production activities. For instance, in October 2016, the Environmental Protection Agency (EPA) finalized an air pollution standards for natural-gas drilling to reduce harmful air pollution from the oil and natural gas industry. Stringent government regulatory policies such as for protecting the environment (including air and water quality), cultural resources, and workers’ and the public’s health and safety, and for reducing wastage of resources are expected to hamper the market growth.

To know the latest trends and insights prevalent in this market, click the link below:

https://www.coherentmarketinsights.com/market-insight/directional-drilling-solutions-and-services-market-2558

Browse 306 market data tables* and 50 figures* on "Directional Drilling Solutions & Services Market” - Global forecast to 2026.

Key Takeaways of the Market:

  • Asia Pacific is expected to be the fastest growing market for directional drilling solutions and services, with China and India poised to be the growth engines of the market. Asia Pacific directional drilling solutions & services market is projected to witness the highest growth rate of 10.2% during the forecast period. The market growth in China is attributed to increasing crude oil production in the country. According to Coherent Market Insight’s analysis, crude oil production in China reached to 11.95 million barrels per day in July 2017. Furthermore, fuel consumption in Asia Pacific increased to 6.0% in 2018 from 2017. According to the U.S. EIA data of 2018, China is the second largest country in oil consumption worldwide. Moreover, construction sector in China is expected to witness a CAGR of 5.8% during the forecast period, which is expected to further drive demand for directional drilling services.
  • Among applications, onshore segment accounted for a major market share in the global direction drilling solutions and services market in 2017. Onshore directional drilling applications include, drilling deep holes under the earth’s surface to design well and to extract oil and natural gases. Directional drilling is proven to be the most efficient way of oil and natural gas extraction. According to the U.S. Energy Information Administration, over 70% of the world’s oil production is from onshore and is further estimated to remain dominant over offshore oil production. Moreover, the onshore oil rig production is increasing on year-on-year basis. This in turn is expected to increase demand for onshore directional drilling operations over the forecast period.
  • Major players operating in the global directional drilling solutions & services market include, Schlumberger Limited, Halliburton Company, Downhole Drilling Services, LLC, Segofs Energy Services Limited, General Electric Company, KAMBI Enterprises Inc., Tolteq Group, LLC (National Oilwell Varco, Inc.), APS Technology, Inc., Shanghai Oilfield Equipment Co., Limited (SOECO), Beijing Geoshine Oilfield Technology Services Co., Ltd., Compass Directional Guidance, Inc., Scientific Drilling International, CBG Corp, China Oilfield Services Limited (COSL), Weatherford, Bench Tree, and Newsco International Energy Services Inc..
  • Rental services providers included in the report are Hunting Energy Services Inc., Calmena Energy Services Inc., Oilwell Solutions, LLC, W-Technology Inc., Micro-Smart Systems Inc., MICROTESLA, Ranger Directional Rentals, WORLD HDD, KWIPPED, Inc., Beijing Hailan Science & Technology Development Co., Limited, Bench Tree (Rentals), Vertex Downhole (Rentals), Weatherford (Rentals), National Oilwell Varco, MWD Supply, Geoglide Australia Pty Ltd., Parker Drilling, and Nabors Industries Ltd.

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