February 25, 2024

Rising Shale Oil And Gas Exploration Activities Expected To Boost The Growth Of Directional Drilling Services Market

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.

Market Overview:
Directional drilling refers to techniques in which the downhole drilling assembly is steered so that the wellbore is deviated from vertical to reach a target location. Such techniques allow operators to drill multiple drainholes or laterals from a single vertical starting point to efficiently develop reservoirs. Directional drilling services involve technical expertise to navigate complex geology and reduce surface footprints. Their application helps reduce environmental impacts, optimize reservoir recovery, and increase production rates.

Market key trends:
Increasing complex oil and gas deposits: With depleting conventional reserves globally, exploration and production firms are increasingly tapping unconventional reserves contained in shale formations, which require directional drilling techniques. Demand for lateral and horizontal drilling from active shale plays in North America isexpected to remain a key trigger for growth of directional drilling service providers over the forecast period. Advancements in measurement-while-drilling and logging-while-drilling technologies have enabled operators to drill longer lateral sections with improved accuracy.

Porter’s Analysis
Threat of new entrants: The high capital requirements for directional drilling equipment and expertise pose barriers to entry in this market.
Bargaining power of buyers: The presence of many service providers gives customers strong bargaining power in the directional drilling services market.
Bargaining power of suppliers: Major suppliers in this market include manufacturers of drill bits, mud motors, and measurement-while-drilling (MWD) tools. Their specialized products give them moderate bargaining power.
Threat of new substitutes: No significant substitutes exist for directional drilling at present, limiting the threat from new alternatives.
Competitive rivalry: The market features many global and regional players competing for market share, leading to high competition.

Key Takeaways
The global directional drilling services market growth is expected to witness high , exhibiting 13% CAGR over the forecast period, due to increasing complex drilling activities.

Regional analysis: North America currently dominates the market, followed by Europe and Middle East & Africa. However, Asia Pacific is expected to grow at the fastest pace during the forecast period due rising shale gas exploration activities and increasing oil & gas E&P projects.

Key players: Key players operating in the directional drilling services market are Baker Hughes, a GE company, Halliburton, Schlumberger Limited, and National Oilwell Varco, Inc. Baker Hughes and Halliburton dominate the global market, with Schlumberger and NOV capturing significant shares as well.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it