The global Directional Drilling Services Market is estimated to be valued at US$ 8.31 Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Directional drilling services involve drilling boreholes in an intentional deviated path between two points and is used majorly in oil & gas exploration and production activities. Directional drilling offers advantages such as drilling multiple drain holes from a single wellbore, extending the reach of wellbores to access reservoirs located farther from the rig site, drilling wells with multiple drain holes from a single surface location.
Market Overview:
Directional drilling involves controlling the direction and deviation of wellbores to predefined target locations while drilling. It is used to obtain maximum drainage from oil and gas reservoirs with minimum surface location disturbance. Directional drilling enables drilling of long reach boreholes from offshore platforms to tap reservoirs located farther from drilling rigs.
Market key trends:
One of the key trends in the directional drilling services market is the increasing complexity of hydrocarbon reservoirs. With conventional oil and gas reserves depleting rapidly, exploration & production companies are increasingly focusing on tapping unconventional resources located in deepwater, ultra-deepwater & Arctic regions which are technically challenging. This is driving demand for advanced directional drilling technologies and services that can drill long reach, extended reach and high angle wells to access such reservoirs safely and economically.
SWOT Analysis
Strength: Directional drilling services offer advantages of drilling multiple boreholes from a single surface location. They help in efficiently extracting hydrocarbons from reservoirs.
Weakness: Directional drilling requires specialized equipment and skilled labor, making it a costly drilling technique. Complex drilling operations pose challenges of controlling drill path within hydrocarbon formations.
Opportunity: Increasing demand for energy along with depleting shale reserves is prompting oil & gas companies to explore unconventional reservoirs. This drives the need for advanced directional drilling services to maximize oil/gas recovery.
Threats: Stringent government regulations to curb environmental impacts of drilling activities could restrict expansion plans of service providers. Volatility in crude oil prices poses risks of delays/cancellations of upstream projects.
Key Takeaways
The global directional drilling services market share is expected to witness high growth, exhibiting a CAGR of 13% over the forecast period, due to increasing need to extract oil and gas reserves from remote and deep-water locations. North America currently dominates the market owing to rise in shale gas production along with maturing oilfields calling for advanced drilling services in the region.
Regional analysis
North America is the largest as well as fastest growing market for directional drilling services driven by increasing complexity of shale oil & gas fields. The Middle East & Africa is another major regional market banked on abundant oil reserves requiring directional drilling techniques. Asia Pacific is also anticipated to showcase substantial growth in coming years supported by offshore projects in countries like India and China.
Key players operating in the directional drilling services market include Baker Hughes, a GE company, Halliburton, Schlumberger Limited, and National Oilwell Varco, Inc. The industry is concentrated among top players who continue consolidating through mergers and acquisitions to expand global footprints. Meanwhile, local players in regions like Middle East also contribute to intensifying competition.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
