Directional Drilling Services Market is Estimated to Witness High Growth Owing to Increasing Shale Gas Exploration Activities
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| Directional Drilling Services Market |
The directional drilling services market is estimated to be
valued at US$ 8.31 Billion 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.
Market Overview:
Directional drilling services are used to drill oil and gas wells in a specific
path or direct trajectory other than vertically. Directional drilling reduces
environmental impact, improves drilling safety, allows multiple wells to be
drilled from a single surface location, extends reach of wells, and provides
access to reservoirs that were previously inaccessible. Services provided
include rotary steerable systems, mud motors, and measurement-while-drilling
and logging-while-drilling instruments.
Market key trends:
Increasing shale gas exploration activities worldwide are expected to drive the
growth of the global directional drilling services market over the forecast
period. Numerous countries are investing in exploration and production of shale
gas reserves. For instance, China, Argentina, Australia and South Africa are allocating
resources to explore shale basins within their territories. Directional
drilling plays a crucial role in extracting shale gas as it allows horizontal
and diagonal drilling of wellbores to maximize resource extraction from shale
deposits. This is expected to significantly boost the demand for directional
drilling services during the forecast period.
Porter’s Analysis
Threat of new entrants: The high capital requirements for rig equipment and
technical expertise pose significant barriers for new companies. Bargaining
power of buyers: Oil and gas companies have moderate bargaining power as
directional drilling services are necessary for their operations. Bargaining
power of suppliers: Suppliers of drilling equipment and technology have some
bargaining power. Threat of new substitutes: There are limited substitutes for
directional drilling currently. Competitive rivalry: Competition is intense
among existing players to gain market share.
SWOT Analysis
Strengths: Companies have access to advanced directional drilling technologies
and equipment.
Weaknesses: Directional drilling requires high skill levels
and training for operators. Margins can compress during market downturns.
Opportunities: Increasing complexity of wells drives demand
for skilled directional drilling.
Threats: Fluctuations in oil prices affects demand and
capital spending by exploration and production companies.
The global directional drilling services market scope is expected to witness high growth, exhibiting CAGR of 13% over the forecast period, due to increasing complexity of oil and gas wells. North America currently dominates the market and is expected to remain the largest market during the forecast period. The growth in the region is driven by increasing shale gas production and developing offshore exploration activities in the Gulf of Mexico.
Regionally, North America is projected to continue to be the dominant as well as the fastest growing region owing to the increasing complex drilling activities in the exploration and production of shale oil and gas resources in the United States.
Key players operating in the directional drilling services market are Baker Hughes, a GE company, Halliburton, Schlumberger Limited, and National Oilwell Varco, Inc. These companies focus on providing innovative drilling technologies and equipment to address the increasing complexities in oil and gas exploration.
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