North America measurement while drilling market is
anticipated to grow robustly during the forecast period 2024-2028 due to the
rising oil and gas exploration operations. Rising energy consumption has led to
a heavy reliance on conventional fuels.
To build a borehole or well (also known as a wellbore)
in the earth's subsurface, such as for the extraction of natural resources,
including gas or oil, a drilling rig is employed. Data is collected from the
drilling rig sensors during such drilling for a variety of purposes, including
decision-support to monitor and manage drilling smoothly; to create detailed
records (or well logs) of the geologic formations penetrated by a borehole; to
produce operations statistics and performance benchmarks so that improvements
can be identified; and to give well planners accurate historical
operations-performance data with which to perform well planning.
Increasing Drilling Activity is Fueling the Growth of
the North America Measurement While Drilling Market
As oil and gas prices have risen, drilling activity
has grown throughout North America. The North American rig count climbed by 114
from the 974 rig counts recorded in the first week of May 2017 to 1118 rig
counts in the first week of May 2018. For MWD benefit suppliers, the rise in
penetrating action is considered as a great thing since it has started
certainty within the North American oil and gas industry. Furthermore, due to
the rapidly growing directional and horizontal drilling activities in the
region, North America is predicted to dominate the measurement while drilling
market during the forecast period.
In contrast to sandstone or carbonate reservoirs,
horizontal wells in shale reservoirs exclusively discharge into the wellbore
reservoir, which further increases their efficacy in the United States.
However, as more horizontal/lateral wells are drilled, drilling operations get
more technical, calling for the use of cutting-edge technologies such as MWD.
After the United States, Canada was the first country to witness the extensive
development of shale reserves. Canada owns 10% of the world's shale reserves.
The country wants to build the measurement while drilling market, promote its
economic recovery, and utilize its shale energy resources. As a result, some of
the key factors driving market expansion in North America, especially in the
United States, include rising oilfield exploration and the existence of various
businesses offering oilfield services.
Offshore Oil and Gas rigs helped the Market to grow in
The offshore discoveries made up about 82% of all the
discoveries in 2018. Additionally, the reserve replacement ratio significantly
increased from 11% in 2017 to around 15%. Producers have been forced to turn to
deepwater and ultra-deepwater resources due to shifting economics and the
depletion of some shallow offshore resources. Additionally, the cost of doing
business in offshore locations has significantly decreased over the past few
years, which is encouraging the sector to gradually increase spending in the
Baker Hughes Co., McDermott, and L&T Hydrocarbon
(LTHE) were given a contract worth USD 1.52 billion by the Oil and Gas Natural
Corporation (ONGC) in 2018 for the deep-water development project known as
KG-DWN-98/2 (Cluster-2) in the Krishna Godavari basin.
Additionally, directional drilling and hydraulic
fracturing are regarded as one of the best technological combinations to be
used in the past ten years. This has altered the oil & gas drilling
landscape throughout the world, particularly in North America.
The market for well logging techniques such as
measurement while drilling (MWD) is being driven over time as drilling grows
more sophisticated and horizontal and directional drills are used more
As long as crude oil prices remain well above USD 60
per barrel, the majority of new discoveries are anticipated to develop, which,
in turn, will fuel the growth of the measurement while drilling market in North
America during the forecast period.
Technology Developments Improve Drilling Efficiency
As the market for renting oilfield equipment grows, so
will the market for measuring while drilling. By renting tools and equipment,
significant industry companies can advance their drilling abilities without
raising monthly costs. Businesses sell drilling measuring equipment, such as
gamma-ray and mud pulse kits, to drilling operators so that they may afford to
access modern technology.
As money is invested in technological advancements to
increase drilling efficiency, measuring while drilling will increase. For
instance, in August 2018, Schlumberger launched a new gyrosphere MEMS,
gyro-while-drilling service, which enables the gyrosphere sensor to do gyro
surveys more quickly than traditional techniques. The precision of this
microelectromechanical system technology allows access to smaller reservoir
targets while drastically reducing drilling hazards.
Expanded market expansion will result from increased
investments in technology advancements meant to improve drilling efficiency. For
example, Schlumberger introduced a cutting-edge gyrosphere MEMS
gyro-while-drilling service in August 2018 that enables the gyrosphere sensor
to do gyro surveys more quickly than traditional techniques. This
microelectromechanical system technology, which also provides precise access to
smaller reservoir targets, significantly reduces the drilling risks.
Rising Trend of Horizontal Directional Drilling (HDD)
rigs & drilling tools
In comparison to other trenchless technologies used
for directional drilling services, it is anticipated that HDD rigs will be more
expensive. According to a government study, the average cost of a drilling rig
used for oil and gas exploration activities is over USD 650 million, and
businesses that specialize in oil and gas exploration are expected to spend a
lot of money on buying drilling rigs. One of these drilling rigs, which cost
roughly USD 1,000 per day, must be purchased by clients. Due to the significant
investments needed for a single project, end users opt to hire contractors or
rent these setups.
It is believed that the companies' continued
importance in their immediate economic and geographic environments stems from
the extent to which the major manufacturers of MWD drilling tools have
regionalized their client bases to maintain a presence in domestic markets. The
primary MWD instrument manufacturers are widely dispersed, especially in
countries that export gas and oil. Examples of companies that operate
internationally and offer their products and services to oil and gas
exploration companies are Halliburton and Honeywell International, Inc.
Rising drilling operations
The global oil and gas market has been experiencing a
considerable downturn since 2019, which has a negative effect on drilling
operations in various significant parts of the world. To lower their
operational expenses during the oil slump, certain oil-producing countries
reduced their supplies and ceased drilling from expensive wells. Additionally,
in 2016 compared to 2014, the average number of oil rigs globally decreased by
about 55% during the oil slump. However, the rise in oil prices that started in
2017 and 2018 respectively has helped the global oil and gas market. As a
result, the average number of oil rigs across the world increased by over 38%
by 2018 compared to the average number of oil rigs in 2016, thereby
significantly boosting drilling activity internationally.
The demand for oil has expanded dramatically as a
result of the expanding economies of the world. Oil corporations have been
pushed to drill unconventional wells and seek untapped oil resources to meet
the increased demand for oil by the rebound in oil prices. To meet the world's
rising energy needs, major E&P companies have changed their focus to
exploiting unconventional oil and gas sources, such as shale oil, shale gas,
tight oil, tight gas, and coal bed methane.
- In March 2020, Petronas Carigali granted a Pan
Malaysia umbrella contract for drilling services to Dagang Nexchange Bhd
(DNeX). The contract stipulates that DNeX will provide Petronas with the
necessary tools and services for directional drilling, measurement while
drilling, and logging while drilling.
- In October 2019, Weatherford approved a number of
contracts for drilling services for a combined USD 67.4 million with a big
Russian operator. Drilling, geo-data interpretation, rotary steerable
systems, logging while drilling (LWD), measurement while drilling (MWD),
and RSS will all be provided by the company.
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The North America measurement while drilling market is
divided into location and well type. Based on location, the market is segmented
into offshore and onshore. The offshore segmented in further divided into
shallow water, deepwater, and ultra-deepwater. Based on well type, the market
is split into horizontal, directional, and vertical.
Major players operating in the North America
Measurement While Drilling Market are Baker Hughes Co., Halliburton Company,
Nabors Industries Limited, National Oil Well Varco Inc., Schlumberger Ltd,
Weatherford International Ltd, Scientific Drilling International Inc., Gyrodata
Inc., and Calmena Energy Services Inc.
Revenue in USD Million, value, and CAGR for 2018 -2022 and 2023
forecast, Company Share, growth factors, and trends
United States, Canada, Mexico
Key companies profiled
Baker Hughes Co.,
Halliburton Company, Nabors Industries Limited, National Oil Well Varco Inc.,
Schlumberger Ltd, Weatherford International Ltd, Scientific Drilling
International Inc., Gyrodata Inc., Calmena Energy Services Inc
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In this report, the North America measurement while drilling market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
America Measurement While Drilling Market, By Location:
America Measurement While Drilling Market, By Well Type:
America Measurement While Drilling Market, By Country:
Company Profiles: Detailed analysis of the major companies present
in the North America measurement while drilling market
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according to a company's specific needs. The following customization options
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