Saudi Arabia Directional Drilling Market is anticipated to grow at
a steady pace in the forecast period, 2024-2028. The
market is robust, and as analyzed by trends, owing to the growing exploration
and production expenditures, as well as rising energy demand is expected to
grow in future as well. For instance, Saudi Aramco estimates that the cost of
developing the unconventional onshore gas project would exceed USD 100 billion,
and that the first stage of the Jafurah gas plant's development will probably
be completed by 2025.
Oil extraction companies use directional
drilling as a method to obtain oil from underground reserves. And although
directional drilling is unique since it entails drilling at an angle other than
vertical. Directional drilling (or slant
drilling) is the technique of drilling non-vertical bores. It can be divided
into four major categories such as: oilfield directional drilling, utility
installation directional drilling, directional boring (horizontal directional
drilling - HDD), and surface in seam (SIS). Major benefits of the technique,
such as flexibility, minimal site restoration, low soil contamination, low
danger of geological anomalies, quicker implementation at lower costs, and many
more, are encouraging the market growth in the forecast period.
Increasing Consumption of Oil and Gas in
Saudi Arabia
The
economy of Saudi Arabia is largely dependent on the oil sector. It is an
oil-rich nation. In December 2021, 3,595 barrels of oil were said to be
consumed daily in Saudi Arabia. In comparison to December 2020, this is an
increase of 3,552 barrels per day. Saudi Arabia's oil consumption data is
updated yearly, with an average of 1,190 barrels per day from December 1965 to
December 2021. Saudi oil and gas consumption would rise in the future because
of important factors such as a strong economy, population growth, and fuel
economy. Therefore, it is anticipated that Saudi Arabia's rising gas and oil
consumption Saudi Arabia propel the oil exploration and production capacity
which would drive future increase the country's directional drilling market
during the period of forecasting.
Rise in Investments in the Oil & Gas Sector to
Drive the Market
The oilfield sector in the area is anticipated to
exhibit strong fundamentals, a well-built growth, and increased activity during
the forecast period, as compared to any other geographic area in the world, because
of the increase in investment in upstream activities throughout the region. To
preserve its spare oil production capacity, strengthen its dominant position in
the oil and gas sector, and pursue exploration and production projects focused
on conventional and unconventional gas resources, Saudi Aramco announced an
expenditure for the more production. The corporate has stressed its aspirations
to increase natural gas production by double.
With
15% of the world's oil reserves as of 2021, the Saudi Arabian government is
increasing investments. It is the world's largest crude oil exporter, with a
crude oil production capacity of nearly 12 million barrels per day, including
capacity from the Neutral Zone shared with Kuwait. Saudi Arabia is the world's
second-largest producer of all petroleum liquids, after Russia. Increased oil
and gas investment in Saudi Arabia is expected to boost oil production and
exploration activities, driving the Saudi Arabia directional drilling market
during the forecast period.
Oilfield Discoveries are Driving the Market
To
take advantage of other nations' and international oil firms' resources and
skills in oil exploration, Saudi Arabia has developed partnerships and
cooperation agreements with them. Access to cutting-edge technology,
information sharing, and joint investment in exploratory operations are all
made possible via shared efforts. Discovering new oilfields is more likely when
there is regional collaboration. For instance, In the east of the country,
Saudi Arabia have many new oil and gas reserves. The two new oilfields are
Sadawi & Naqa, while the five new gas fields are Abu Ali, Faras, Amjad,
Badi, and Faris. Saudi Aramco oversees oil exploration in Saudi Arabia. Faskar,
Janab, and Maqam were three oilfields, and Edmee and Murooj were two
non-associated gas fields.
For directional drilling market players companies in the Saudi Arabia, these sub-surface
oil locations are anticipated to present business forecasts, which are expected
to create significant Saudi Arabia directional drilling market growth
opportunities over the course of the projection period.
Rising Demand of Natural Gas
In Saudi
Arabia, the main source
of energy is oil and natural gas. Saudi Arabia government is working to diversify their energy sources
and reduce their dependency on oil and gas. Due to the benefits of its low
carbon emissions, natural gas-based power generation is anticipated to have
large investments as more Saudi Arabia nations join the Paris Climate Accord.
The biggest investor in gas power production projects in the region is Saudi
Arabia. Due to increased attention being paid to the development of gas-based
power infrastructure and the increased number of gas-based power generation
projects planned in the Middle East, it is anticipated that domestic gas
production would increase significantly. This would fuel the demand for directional
drilling in the region.
Increasing Production &
Exploration Activities in Oil & Gas Industry to Favour Market Growth
Due to increased energy demand and profitable
investment prospects in the oil and gas sector, production and exploration
activities are expected to increase in the upcoming years. According to the
International Energy Agency, a sizable portion of the world's total oil
production will be conventional by onshore oil location. In 2022 DNV-GL
Energy-Transition observe that oil production raised by 83 (Mbpd) million
barrels per day. Moreover, by 2035, unconventional onshore rig oil production
will have doubled to around 22 Mbpd, accounting for close to 30% of world crude
oil production. Therefore, it is estimated and expected that rising
production and exploration activities in Saudi Arabia oil and gas production
will drive market expansion in the years to come.
Reduction in oil & gas capex
The oil and gas production observed a severe
impact with a decrease in crude oil demand due to lower consumption. In April
2020, the international crude oil price decreased to around USD 20 per barrel,
which created an unfavorable environment for all the exploration and production
companies. With such a crude oil price, upstream companies failed to recover
their expenses related to crude oil and natural gas production. In 2020, rig
operators witnessed losses in revenues. For instance, Shelf Drilling
incurred a loss of around USD 12.5 million. Similarly, Seadrill witnessed an
operating loss of around 32 million. The losses were due to several
contract terminations, globally including contract termination with Saudi
Aramco. Therefore, these termination in capex is limiting the market growth.
Recent Development
In 2023, the Government plans to list up to 5% of Saudi Aramco’s shares with foreign investors invited (FII) to participate in the listing. The proceeds of the Saudi Aramco listing would go to Open Investment Fund, a sovereign wealth fund that will hold the government’s remaining portion of Saudi Aramco’s shares.
In September 2022, Saudi Arabia awarded a long-term directional drilling contract to National Energy Services Reunited Corp. (NESR). Directional drilling (DD), measurement while drilling (MWD), performance drilling, well engineering, and logging while drilling (LWD) services are included in the contract's scope and will be provided for a maximum of four years.
June 2018- An oil and gas expertise and C3.ai's unique AI software suite will be combined by Baker Hughes and C3.ai to create digital transformation technologies, which will increase productivity for the oil and gas sector.
Schlumberger introduced its at-bit steerable system for drilling horizontal wells in a single run in October 2019.
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Market Segmentation
Saudi
Arabia Directional Drilling Market is divided into type, component, service, technology, location, and
region. Based on type, the market is segmented into conventional system and
rotary steerable system. Based on Component, the market is segmented into drilling
tool rental, rig rental, OCTG rental, consumables, and others. Based on
Service, the market is divided into drilling, logging-while-drilling, and
measurement-while-drilling & survey. Based on technology, the market is
segmented into wellbore positioning, side tracking, well planning, and others.
Based on location, the market is segmented into onshore and offshore. Based on
region, the market is segmented into northern & central region, western
region, eastern region, and southern region.
Market Players
Main market players in the Saudi
Arabia Directional Drilling Market are Schlumberger
Saudi Arabia Limited Company, Weatherford Energy Services Saudi Arabia Co. Ltd,
Halliburton Company, Baker Hughes Saudi Arabia Co, Nabors Industries Ltd,
National Oilwell Varco Inc, Valaris PLC, Noble Corporation PLC, Saipem SpA, and
Arabian Drilling Company
|
Attribute
|
Details
|
|
Base Year
|
2022
|
|
Historic Data
|
2018 –
2022
|
|
Estimated Year
|
2023
|
|
Forecast Period
|
2024
– 2028
|
|
Quantitative Units
|
Revenue in USD Million, and CAGR for 2018-2022 and 2023-2028
|
|
Report coverage
|
Revenue
forecast, company share, growth factors, and trends
|
|
Segments covered
|
Type
Component
Service
Technology
|
|
Regional scope
|
Eastern
Region, Northern & Central Region, Western
Region, Southern Region
|
|
Key companies profiled
|
Schlumberger Saudi Arabia Limited Company, Weatherford Energy
Services Saudi Arabia Co. Ltd, Halliburton Company, Baker Hughes Saudi Arabia
Co, Nabors Industries Ltd, National Oilwell Varco Inc, Valaris PLC, Noble
Corporation PLC, Saipem SpA, Arabian Drilling Company
|
|
Customization scope
|
10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
|
|
Pricing and purchase options
|
Avail customized purchase options to meet your exact research
needs. Explore purchase options
|
|
Delivery Format
|
PDF and Excel
through Email (We can also provide the editable version of the report in
PPT/Word format on special request)
|
Report Scope:
In this report, the Saudi Arabia Directional
Drilling Market has
been segmented into following categories, in addition to the industry trends
which have also been detailed below:
·
Saudi Arabia Directional Drilling Market, By Type:
o
Conventional System
o
Rotary Steerable System
·
Saudi Arabia Directional Drilling Market, By
Component:
o
Drilling Tool Rental
o
Rig Rental
o
OCTG Rental
o
Consumables
o
Others
·
Saudi Arabia Directional Drilling Market, By
Service:
o
Drilling
o
Logging-While-Drilling
o
Measurement-While-Drilling & Survey
·
Saudi Arabia Directional Drilling Market, By
Technology:
o Wellbore
Positioning
o Side
Tracking
o Well
Planning
o Others
·
Saudi Arabia Directional Drilling Market, By
Location:
o Offshore
o Onshore
·
Saudi Arabia Directional Drilling Market, By Region:
o
Eastern Region
o
Northern & Central Region
o
Western Region
o
Southern Region
Competitive Landscape
Company Profiles: Detailed analysis of the
major companies present in the Saudi Arabia Directional Drilling Market.
Available Customizations:
Saudi Arabia Directional Drilling Market report with the given market data,
Tech Sci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).
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soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected].