Drill bits are primarily used in the oil and gas industry for extracting oil &gas from the earth's crust. Drill bits are majorly categorized into roller cone cutter bits and fixed cutter bits. Out of which roller cone drills bit are the most popular type of drill bits and are used for drilling of conventional wells. Fixed cutter bits are used in the unconventional shale gas reserves as they have an enhanced rate of production (ROP).
The global drill bits for oil and gas industry application market is expected to surpass US$ 22,680.7 Mn in terms of value by the end of 2028.
Global Drill Bits for Oil and Gas Industry Application Market: Drivers
Growing exploration activities around the globe is a prime factor propelling the market growth of the drill bits for oil and gas industry application. The increasing price of crude oil and natural gas is driving demand for offshore drilling. Growing offshore exploration & production (E&P) activities across developing regions are projected to foster the market growth of the drill bits. Also, increasing deepwater explorations is again propelling the market growth of the drill bits for oil and gas industry applications.
Global Drill Bits for Oil and Gas Industry Application Market: Opportunities
The growing use of hybrid drill bits is projected to offer profitable market opportunities in the market. Hybrid drill bits have to combine characteristics of roller cone bits and PDC bit technology. Moreover, the hybrid drill bit can be used for inter-bedded formations and drilling hard. Properties such as continuous shearing action and cutting superiority of diamond drill bits and stability and rock-crushing strength of roller cone bits is projected to drive the demand for hybrid drill bits thereby fueling the market growth of the oil and gas industry application.
Global Drill Bits for Oil and Gas Industry Application Market: Recent Developments
Global Drill Bits for Oil and Gas Industry Application Market: Restraints
The oil and gas industry is highly regulated by government organizations worldwide and largely dependent on financing provided by governments. Moreover, the oil &gas industry requires high capital investments and continuous funding for developing innovative products and the price of such a technologically advanced PDC drill bit is very high. This factor is expected to hinder the market growth of the drill bits for oil and gas industry applications.
Global Drill Bits for Oil and Gas Industry Application Market - Impact of Coronavirus (Covid-19) Pandemic
Globally, as of 5:52pm CEST, 11 October 2021, there have been 237,383,711 confirmed cases of COVID-19, including 4,842,716 deaths, reported to WHO. As of 10 October 2021, a total of 6,364,021,792 vaccine doses have been administered. Emergence of Covid-19 has led to significant decline in the oil and gas sector. For instance, according to Fitch Ratings Inc., the U.S.-based credit rating agency, the oil and gas sector is expected to lose US$1.8 trillion in 2020. Such scenario is expected to limit growth of the global drill bits for oil and gas industry application market.
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Fixed cutter drill bits are gaining traction in the market as they are implanted with diamonds. Moreover, they have high resilience to extremely hard surfaces. Increasing investment in the development of the crude oil industry coupled with the growing populations and surging exploratory activities especially across the Asia Pacific region is again expected to support the market growth of the drill bits for oil and gas industry application over the forecast timeframe.
Growing strategic mergers and acquisitions among key manufacturers in the market is an emerging trend and this trend is projected to bolster the market growth. For instance, in October 2018, Blackstone Energy Partners announced that it has acquired a controlling, majority interest in Fort Worth Ulterra Drilling Technologies, a producer of drill bits and downhole tools for the oil and gas industry. Ulterra is the largest pure-play, independent supplier of polycrystalline diamond compact drill bits to the oil and gas industry.
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., and Kingdream Public Limited Company.