PUBLISHER: The Business Research Company | PRODUCT CODE: 1425406
PUBLISHER: The Business Research Company | PRODUCT CODE: 1425406
Directional Drilling Services Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on directional drilling services market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for directional drilling services? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The directional drilling services market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Directional drilling services involve the management of a wellbore's direction and deviation to reach a predetermined subsurface target or location. These services are essential for precisely locating the most lucrative zone within a reservoir, regardless of the reservoir environment. The effective use of directional drilling services can reduce construction costs and enhance output in various ways.
The main types of directional drilling services include logging-while-drilling, rotary steerable systems, measurement while drilling and survey, drag analysis, wellbore positioning, and other related services. Logging-while-drilling (LWD) specifically involves incorporating wireline-quality formation parameters into the directional data. Wells can be of various types, such as horizontal, multilateral, and extended reach, and these services are applicable in both onshore and offshore drilling operations.
The directional drilling services market research report is one of a series of new reports from The Business Research Company that provides directional drilling services market statistics, including directional drilling services industry global market size, regional shares, competitors with a directional drilling services market share, detailed directional drilling services market segments, market trends and opportunities, and any further data you may need to thrive in the directional drilling services industry. This directional drilling services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The directional drilling services market size has grown strongly in recent years. It will grow from $14.69 billion in 2023 to $15.91 billion in 2024 at a compound annual growth rate (CAGR) of 8.3%. The growth observed in the historical period can be attributed to factors such as the boom in oil and gas exploration, a focus on offshore exploration and production, dealing with complex reservoir geology, the pursuit of cost-efficiency and time savings, the adoption of horizontal drilling techniques, considerations related to environmental and regulatory factors, and the challenges associated with deepwater exploration.
The directional drilling services market size is expected to see strong growth in the next few years. It will grow to $21.52 billion in 2028 at a compound annual growth rate (CAGR) of 7.8%. The anticipated growth in the forecast period can be attributed to the development of renewable energy infrastructure, the increasing demand for natural gas, geopolitical factors impacting energy security, the economic viability of unconventional resources, and a heightened focus on emissions reduction. Major trends in the forecast period encompass technological advancements in directional drilling, a focus on wellbore positioning and surveying, the integration of automation and robotics, collaborative partnerships, and advancements in geosteering and reservoir navigation.
Anticipated growth in the directional drilling services market is attributed to the increased production of oil and gas from unconventional reserves. This production process involves converting crude oil and natural gas extracted from wells into usable petroleum products. Directional drilling plays a crucial role in this process by enabling drilling not only vertically but also at various angles, enhancing access to and extraction of oil and gas reserves. In August 2022, the U.S. Energy Information Administration reported that global petroleum and other liquids production reached 98.33 million barrels per day in 2020 and increased to 95.68 million barrels per day in 2021. This surge in oil and gas production is a significant driver for the directional drilling services market.
The directional drilling services market is poised for growth due to the increasing demand for the distribution of natural gas. With natural gas primarily consisting of methane and being distributed through complex reservoirs, directional drilling services are instrumental in accessing remote and intricate natural gas reservoirs. In September 2023, the Ministry of Petroleum and Natural Gas in India reported an 8.2% year-on-year growth in the distribution of petroleum products. This rising demand for natural gas distribution is a key factor propelling the growth of the directional drilling services market.
A notable trend in the directional drilling services market is the emphasis on technological advancements by major industry players. Companies are dedicated to advancing technologies to sustain and strengthen their position in the market. For instance, Schlumberger, a prominent oilfield services company, introduced autonomous directional drilling (ADD) in August 2021. ADD incorporates solutions for autonomous steering throughout the wellbore, utilizing a downhole automated control system that is intelligent and dynamic. This system can instantaneously analyze and respond to data, allowing for self-steering through any section of the wellbore, including auto-vertical, auto-tangent, and auto-curve functions. The focus on technological innovation is a key driver for the directional drilling services market.
In June 2023, Nabors Industries Ltd., a UK-based company specializing in drilling oil and gas wells, entered into a partnership with Halliburton Company, a US-based oil service company. The collaboration aims to establish a dominant position in well construction automation solutions. Under this partnership, Halliburton and Nabors will integrate their technologies, incorporating Halliburton's Well Construction 4.0 digital surface and subsurface drilling technologies, the LOGIX Autonomous Drilling Platform, and Nabors' SmartROS universal rig controls and automation platform, along with the RigCLOUD high-performance digital infrastructure platform.
In September 2023, Legacy Directional Drilling, LLC, a US-based provider of directional drilling services, successfully acquired Renegade Oil Tools LLC for an undisclosed amount. With this acquisition, Renegade Oil Tools LLC will maintain its focus on producing high-performance drilling motors and drilling motor components. The acquisition positions Renegade as a key component in Legacy's next phase of growth. Renegade Oil Tools LLC is recognized for its expertise as a US-based manufacturer of high-performance drilling motors and related components. This strategic move aligns with Legacy Directional Drilling's growth strategy and reinforces its commitment to delivering top-quality directional drilling services in the industry.
Major companies operating in the directional drilling services market report are Baker Hughes Incorporated, Cathedral Energy Services Limited, Crescent Directional Drilling LP, Halliburton Company, Jindal Drilling and Industries Limited, Leam Drilling Systems Inc., Nabors Industries Limited, National Energy Services Reunited Corporation, NewTech Services Holding Limited, NOV Inc., Phoenix Technology Services Corp., PHX Energy Services Corporation, Schlumberger Limited, Scientific Drilling International Inc., Weatherford International PLC, Boart Longyear Group Ltd., Ensign Energy Services Inc., Foraco International SA, Gyrodata Inc., Noble Corporation PLC, Patterson-UTI Energy Inc., AKITA Drilling Ltd., Archer Limited, Baker Hughes Company, Helmerich & Payne Inc., Horizon Drilling Inc., Independence Contract Drilling Inc., Odfjell Drilling Ltd., Parker Drilling Company, Precision Drilling Corporation, Savanna Energy Services Corp., Trinidad Drilling Ltd., Western Energy Services Corp., and Xtreme Drilling Corp.
North America was the largest region in the directional drilling services market in 2023. Asia-Pacific was the second-largest region in the directional drilling services market report. The regions covered in the directional drilling services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the directional drilling services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The directional drilling services market includes revenues earned by entities by providing directional drilling, and geo steering services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.