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The global directional drilling market is driven by the growing demand for horizontal and directional wells in North America and increased offshore drilling activity worldwide. Despite these drivers, the market is facing challenges from sluggish U.S. land drilling operations, largely due to low oil prices.

As a result, the global market, which was valued at USD 12.3 billion in 2024, is projected to fall slightly to USD 12.2 billion in 2025. While U.S. activity remains subdued, international markets are expected to perform better, leading to an overall flat market outlook compared to the previous year.

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:

1. Horizontal directional wells (a result of horizontal directional Drilling)

2. Extended reach wells

3. Multilateral wells 

Directional Drilling offers the following benefits:

1. Enables drilling multiple wells from the same vertical bore, minimizing the well's environmental impact. 

2. It is cost-effective to deliver high production rates by intersecting multiple targets with a single wellbore. 

Directional Drilling has the following applications: 

1. Drilling in inaccessible locations where oil deposits are located beneath difficult locations, such as rivers, buildings, mountains, and shorelines. Directional Drilling is also beneficial to contractors who install utility pipelines in areas where buildings, roads, and structures exist on the surface. 

2. Enable drilling multiple wells from the same vertical bore, minimizing the well's environmental impact. 

3. Directional Drilling also finds applications in side-tracking, fault drilling, Salt dome Drilling, and Relief well drilling.

Regional Analysis 

North America

The United States, as one of the world’s leading oil and gas producers, dominates the North American market. The country’s directional drilling market was valued at USD 3.56 billion in 2024. However, with crude oil prices remaining low, oil companies are exercising caution in their exploration and production spending. As a result, the market is projected to decline by around 10%, reaching approximately USD 3.2 billion in 2025.

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 2030.

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.

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.

Europe

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.

About the Report

What we cover in the report?

Directional Drilling Services Drivers & Restraints

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.

The section provides an assessment of geopolitics 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 2030, including year-on-year (YoY) market growth rates and CAGR.

Directional Drilling Services Market Industry Analysis

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.

Directional Drilling Services Market Segmentation & Forecast

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.

Regional Market Analysis

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

Key Company Profiles

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.

Competitive Landscape

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

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.

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