Directional Drilling Service Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 – 2025
Directional drilling
controls the trajectory and deviation of the well during drilling
operations. It deviates a wellbore and explore the oilfields from a
targeted location. Rise in energy demand due to the shale gas
revolution, urbanization & industrialization, and oilfield
discoveries in onshore as well as offshore locations are major
factors driving the directional drilling service market. Horizontal
directional drilling (HDD) or directional boring is a steerable
trenchless method of installing conduits, cables, and underground
pipes with minimum effect to the contiguous area. HDD is primarily
used for utility installation, cable laying, and underground
construction.
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Directional drilling
services have transformed the oil and gas industry. Oil and gas can
be extracted economically from the deep ocean floor using directional
drilling. It is also used to deplete and formerly abandoned oil
wells. Directional drilling technology increases the area covered by
a single rig, saving capital expenditure. Increase in demand for
chemical and petrochemicals products and rise in exploration and
production activities in distant locations and deep waters are
boosting the oil & gas segment of the market. Volatility of the
crude oil market and environmental concerns during drilling operation
are restraining the directional drilling services market.
The direction
drilling services market can be segmented based on application, type,
services, and region. In terms of application, the market can be
bifurcated into onshore and offshore. Based on types, the market can
be split into conventional and rotary steerable system. The
conventional segment is expected to holds a major share of the market
in Asia Pacific due to rapid urbanization & industrialization in
the region. In terms of services, the direction drilling services
market can be divided into measurement while drilling (MWD) &
survey, logging while drilling (LWD), motors, rotary steerable system
(RSS), and others (automated drilling systems, well bore positioning,
side tracking, hydraulics, well planning, drag analysis, and torque).
The rotary steerable system (RSS) segment is expected to account for
a major share of the directional drilling services market due to the
increase in use of directional and horizontal drilling activities in
exploration and production (E&P) of shale gas.
Based on region, the
directional drillings services market can be segmented into North
America, Latin America, Asia Pacific, Europe, and Middle East &
Africa. North America is a dominating market for directional drilling
services as most of the directional and horizontal wells are drilled
in the region. In North America, the evolution of the directional
drilling services market can be ascribed to factors such as drilling
activity for shale gas in countries like U.S. and Canada. The U.S. is
the dominant player in this region owing to the increase in E&P
activities for shale gas in the Gulf of Mexico. The market in North
America is followed by Asia Pacific, which is also driven by E&P
activities in China and India. China is one of the major consumers of
oil & gas, was planned to increase natural gas consumption as it
seems to be replace coal as a chief energy source due to stringent
government regulation. Middle East and Africa is also key market
player for E&P of crude oil. This is expected to increase in near
future due to the increase in production of onshore and offshore
exploration activities. However, uncertainty of the upstream oil
market and low crude oil prices increases the focus on renewable
energy, which can restrain the directional drilling services market.
Key players
operating in the global directional drilling services market include,
Halliburton Company, Baker Hughes Incorporated, National Oil well
Varco, Inc., Weatherford International plc, Jindal Drilling &
Industries Limited, Cathedral Energy Services Ltd., and Schlumberger
Limited.
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