The anticipated growth in the investment cycle in the Oil and Gas industry, accelerating FIDs for offshore Drilling, continuing recovery of US Drilling, and an increasing number of projects in the Gulf of Mexico are contributing to the growth of the Global Directional Drilling Services market. A tightening supply, high oil and gas prices, steadily rising land rig activity around the world, Oil production outages in Libya, protests in Kazakhstan increasing the risks of a production outage, the Ukraine crisis all point to greater activity in the oil and gas sector.
First originated in the 1960s, Directional Drilling is the intentional deviation of a wellbore from its natural path. A well is drilled vertically to a point during directional Drilling and then deflected at an angle. An increasingly popular and effective form of directional Drilling is horizontal Drilling. Horizontal Drilling can reduce the number of wells required to drain a reservoir while increasing the amount of retrievable oil to between 50 percent and 75 percent of a reservoir's capacity. Moreover, horizontal Drilling allows additional wells to be drilled into a reservoir without interrupting the production of existing wells.
Directional Drilling is common in shale reservoirs because it allows drillers to place the borehole in contact with the most productive reservoir rock.
Based on the well structure, directional drilling results in 3 main types of wells:
Directional Drilling offers the following benefits:
Directional Drilling has the following applications:
As of February 2022, the United States DUC count has dropped 48% in two years. Unless top U.S. Shale producers start drilling new wells, oil production in the U.S. could be limited.
The EIA had estimated a fall in DUCs from 4830 in November to 4616 in December. January's DUC count has fallen much lower in a similar trend, decreasing by 191 to 4,466 DUCs. Hard times are predicted for oil markets as higher demand for oil is forecasted while oil and gas investments have failed to rebound at the same pace.
According to the EIA, gas production is estimated to grow in the long term, driven by end-user consumption and opportunities to sell natural gas internationally through LNG exports. Shale gas and associated natural gas from oil plays are the primary contributors to this long-term growth. More than half of the growth in shale gas production between 2020 and 2050 is expected to come from shale gas plays in the Appalachian Basin in the East region, and most of the remaining growth from plays in the Gulf Coast and Southwest regions. EIA projects associated with natural gas will return to 2019 levels in 2024 and then steadily increase at a modest rate through 2050, primarily driven by increased Drilling in the Permian Basin. In the long term, because of expected increases in international demand for natural gas, EIA expects US LNG exports to more than double between 2020 and 2029.
The Ukraine- Russia crisis invigorates the U.S. oil and gas industry as the E.U. searches for new crude energy sources. In January 2022 alone, the U.S. shipped way more natural gas than Russia supplied to the E.U. Despite growing concerns and conservative expectations of U.S. Oil companies' shareholders, limited supply, growing demand, and surging oil prices hint at an increase in drilling activity in the U.S. However, amidst recovery from the global pandemic and resurging air travel, this backdrop is bound to put more pressure on the oil supply. As a result, oil companies are planning on increasing production.
For example, Exxon Mobil declared that it would boost its production by 25% in the Permian basin in Texas, and Chevron plans to up its output there by 10%. Private companies have been boosting production, and they typically account for 20% of increased volume, but that number is forecasted to be 50% this year. Devon Energy announced in its earnings release a higher-than-expected production.
With plans to be a significant LNG Exporter and produce enough oil, the U.S. is bound to witness rising drilling activity in its numerous oil plays. According to the EIA, crude oil production is set to increase to 8.707 million barrels per day in March in the seven most prolific U.S. shale basins - marking a 109,000 bpd increase (1.3%)from February's 8.598 million bpd, and an increase of 271,000 bpd from January's production.
It is interesting to observe that, despite the collective goal of the E.U. to transition to green energy, the United Kingdom government has permitted more drilling activity in the North Sea. In contrast, the Danish Parliament has decided to cancel all future licensing for oil and gas extraction.
With its reinforced focus on Carbon control and its carbon emission scheme, Europe is highly reliant on Natural gas for its energy needs. Gas imports meet 60% of Europe's energy needs. Norway and Russia are among major suppliers of gas in Europe. Over-reliance on a few countries for its energy needs will prove to be a tricky situation for the European Union, especially with Russia's attack on Ukraine. Therefore, it stands to be seen if the energy crisis combined with the severe winter can move the European union to warm up to the idea of permitting Drilling and granting Exploration and Production licenses.
The study covers all the major underlying forces that help the market develop and grow and the factors that constrain the growth.
The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.
Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and functions as a guide for you to analyze the degree of impact.
Directional Drilling Services Market Analysis
This report discusses the overview of the market, latest updates, important commercial developments and structural trends, and government policies and regulations.
This section provides an assessment of COVID-19 impact on Directional Drilling Services demand.
Directional Drilling Services Market Size and Demand Forecast
The report provides Global Directional Drilling Services Market size and demand forecast until 2027, including year-on-year (YoY) market growth rates and CAGR.
The report examines the critical elements of Directional Drilling Services industry supply chain, its structure, and participants
Using Porter's five forces framework, the report covers the assessment of the Directional Drilling Services industry's state of competition and profitability.
The report dissects the Global Directional Drilling Services Market into various segments. A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.
Further, market size and demand forecasts will be presented along with various drivers and barriers for individual market segments.
Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for a "bespoke" market segmentation to better align the research report with your requirements.
The report covers detailed profiles of major countries across the world. Each country's analysis covers the current market scenario, market drivers, government policies & regulations, and market outlook.
In addition, market size, demand forecast, and growth rates will be provided for all regions.
Following are the notable countries covered under each region.
North America- United States, Canada, Mexico, and Rest of North America
Europe- Germany, France, United Kingdom (UK), Russia, and Rest of Europe
Asia Pacific- China, India, Japan, South Korea, Australia, Rest of APAC
Rest of the world- Middle East, Latin America, Nigeria, South Africa, and other countries
This report presents detailed profiles of Key companies in the Directional Drilling Services industry. In general, each company profile includes - company overview, relevant products and services, a financial overview, and recent developments.
The report provides a comprehensive list of notable companies in the global market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.
The study also discusses the strategies adopted by leading players in the industry.
Executive Summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.
The report begins with an Executive Summary chapter and ends with Conclusions and Recommendations.
Get a free sample copy of Directional Drilling Services Market report by clicking the "Download a Free Sample Now!" button at the top of the page.
1. Executive Summary
2. Research Scope and Methodology
3. Market Analysis
4. Industry Analysis
5. Market Segmentation & Forecast
6. Regional Market Analysis
7. Key Company Profiles
8. Competitive Landscape
9. Conclusions and Recommendations
List of Tables & Figures
Global Directional Drilling Services Market Revenue, in USD billion, 2018-2025
Global Directional Drilling Services Market Revenue Share, by Type, 2018
Global Directional Drilling Services Market Revenue Share, by Location, 2018
Global Directional Drilling Services Market Revenue Share, by Region, 2018
Rotary Steerable - Market Revenue, in USD billion, 2018-2025
Conventional - Market Revenue, in USD billion, 2018-2025
Onshore - Market Size and Demand Forecast, by Value, 2018-2025
Offshore - Market Size and Demand Forecast, by Value, 2018-2025
North America - Directional Drilling Services Market Revenue, in USD billion, 2018-2025
Europe - Directional Drilling Services Market Revenue, in USD billion, 2018-2025
South America - Directional Drilling Services Market Revenue, in USD billion, 2018-2025
Asia-Pacific - Directional Drilling Services Market Revenue, in USD billion, 2018-2025
Middle East & Africa - Directional Drilling Services Market Revenue, in USD billion, 2018-2025
Directional Drilling Services - Market Share of Key Companies in 2018
More than 70% of our clients seek customized reports. Reach us out to get yours today!