United States Directional Drilling Services Market is anticipated to grow at a good pace in the forecast period, 2024-2028. An increase in the discovery of new bulk potential reservoirs and rising demand for a variety of instruments and equipment such as Rotary Steerable Systems, Logging-While-Drilling, Measurement-While-Drilling & Survey, Motors, used in the oil and gas industry is anticipated to drive the market's demand. As of 2021, the United States is the world's top oil and gas producer. More than 900,000 oil and petrol wells are currently operational in the United States, and more than 130,000 have been created since 2010.
Oil extraction businesses employ directional drilling as a method to access oil in subsurface reservoirs. Another name for directional drilling is directional boring. Most oil wells must be accessed by drilling vertically from the surface down to the well below since they are typically located above the targeted reservoir. Yet directional drilling is distinct since it includes drilling at an angle other than vertical. (Drilling that does not descend vertically is referred to as directional drilling.)
The fundamental advantage of directional drilling is that it enables businesses to access various oil reserves with a single well, lowering overall drilling costs and minimizing drilling's negative effects on the environment.
Increasing Investment in Offshore Upstream Sector to Augment Market
Growing investment in subsea oil and gas assets is expected to propel the offshore sector of oilfield services to the fastest growth during the forecast period. To improve their productivity, reservoir performance, and overall, well life, numerous oil field service providers are making significant investments in offshore assets. Large upstream nations like the United States, China, Russia, and Norway are mainly concentrating on finding new reservoirs and improving recovery from existing wells, which raised the demand for oilfield services, such as drilling, completion, and workover services, globally.
With USD 214 billion in new project investments planned the offshore oil and gas (O&G) sector is expected to have its fastest growth in ten years during the next two years. According to Rystad Energy's study, annual greenfield capital expenditure (capex) will surpass USD 100 billion in 2023 and 2024, marking the first two years in a row since 2012 and 2013. Offshore is now again in the spotlight as countries search for carbon-friendly production sources and the demand for fossil fuels around the world remains high. In 2023 and 2024, offshore activity is anticipated to account for 68% of all conventional hydrocarbons that have been authorized, up from 40% between 2015 and 2018. Since it came before the Covid-19 outbreak and the ensuing drop in oil prices, it is wise to make comparisons to this time. Offshore initiatives would account for over half of all sanctioned projects in the following two years, up from just 29% from 2015 to 2018. With supply chain spending expected to increase 16% in 2023 and 2024 and reach a decade-high year-over-year increase of USD 21 billion, these new investments will be a windfall for the offshore services market. The use of offshore rigs, ships, and FPSOs (floating production storage and offloading) is expected to increase.
Discoveries in Oil & Gas Industry to Boost the Market Growth
The directional drilling services sector is being driven forward by the discovery of reserves and oilfields. The major discoveries include the Alpine High in West Texas, Alaska in the United States, the Golan Heights in Israel, the gas discoveries at Dinkov and Nyarmeyskoye in the Kara Sea off the Yamal Peninsula in West Siberia, the oil discoveries at Tilapia, Yellowtail, and Haimara in the Stabroek block, and the offshore gas discovery at Lang Lebah-1RDR2. According to projections, oil prices would rise in the upcoming years, encouraging independent exploration companies, gas producers, and oil field operators to invest in new oil and gas finds. The oil and gas exploration sector showed growth in 2022 despite a global decline in exploration drilling. This was due to discoveries and higher-quality prospects that generated USD 33 billion in value and full-cycle returns of 22%, based on USD 60/bbl Brent prices.
By 2030, the recent discoveries might produce 1 million barrels of oil per day and 0.5 million barrels of oil equivalent per day, producing USD 15 billion in free cash flow. In terms of net newly discovered resources in 2022, Total Energies, Qatar Energy, and Petrobras are in the lead with about three-quarters of the new resources discovered by either a national oil company (NOC) or a global major.
Growing Investment in Untapped Oil & Gas Reserves to Accelerate Market Growth
The need for energy in the United States has increased because of the growth of the oil and gas industry. Oil and petrol have been extensively employed over the years in a variety of end-use industries, including transportation, industry, and the production of electricity. Nonetheless, it is anticipated that the market expansion would be driven by the considerable demand for unconventional fuel, such as shale gas, tight gas, and coal bed methane, because of rising urbanization, globalization, and major economic development. To meet future energy demand, many nations are also boosting their capital expenditures (CAPEX). Offshore hydrocarbons, such as oil and gas, are among the most effective and trustworthy sources of energy, and as a result, they draw a lot of investors and oil and gas firms. The market size is therefore expected to be driven by growing interest in recovering undeveloped oil and gas. According to the U.S. Energy Information Administration, there are undiscovered proven oil reserves worth an estimated 38.2 billion barrels beneath American land. However, there is a significant barrier preventing the United States from using that oil It is frequently lighter and unlike the heavy imported oil we currently rely on.
Increasing Energy Demand Estimated to Propel Market Size Positively
To increase the grid's efficiency and reliability, which in turn stimulates the energy demand, power utilities planned to invest USD 295 billion in transmission and distribution infrastructure for the years 2021 to 2030, according to European Energy Industry Investments 2017. Furthermore, there would be an increase in power demand due to significant development projects to construct office buildings, business parks, and housing societies. The United States spent USD 1 trillion, or 4.8% of GDP, on energy in 2020 (GDP). The annual costs were USD 3,039 per person when distributed throughout the population. Global climate change, acid rain, hazardous air pollution, smog, radioactive waste, and habitat destruction are some of the environmental effects connected to the production and consumption of energy. Energy security is seriously threatened by the country's substantial reliance on fossil fuels (mainly imported crude oil). The rebound effect, a phenomenon that can occur in all industries, is a possibility that could prevent potential improvements in energy efficiency. The country consumes over 17% of the world's energy and produces 16% of the global GDP despite having fewer than 5% of the global population. In contrast, China has 18% of the world's population, consumes 25% of the energy, and accounts for 18% of the world's GDP, while the European Union has 6% of the world's people and uses 10.4% of the world's energy. 6,7. The average American uses 2.5 gallons of oil, 8.86 pounds of coal, and 246 cubic feet of natural gas every day.
Recent Development:
- In November 2021, Nabors Industries Ltd. and Chesapeake Energy Corporation entered into a deal designating Nabors as the company favored drilling projects for oil and gas in the United States.
- Schlumberger introduced its at-bit steerable system for drilling horizontal wells in a single run in October 2019.
- Baker Hughes and C3.ai announced their joint venture agreement in June 2018; it combines Baker Hughes' oil and gas expertise with C3.ai's distinctive AI software package to create digital transformation technologies that will increase productivity for the oil and gas sector in the coming years.
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Market Segmentation
The United States Directional Drilling Services Market is divided on the basis of type, service, technology, and application. Based on type, the market is divided into Conventional and Rotary Steerable System. Based on Service, the market is divided into Logging-While-Drilling (LWD), Measurement-While-Drilling (MWD) & Survey, Motors (MUD Motors), and Others. Based on technology, the market is divided into Wellbore Positioning, Side Tracking, Well Planning, and Others. Based on Application, the market is divided into Onshore and Offshore.
Market Players
Major market players in the United States Directional Drilling Services Market are Schlumberger Ltd, Weatherford International, Halliburton Company, Baker Hughes Company, Gyrodata, Leam Drilling Systems, and National Oilwell Varco.
Attribute | Details |
Base Year | 2022 |
Historic Data | 2018 – 2022 |
Estimated Year | 2023 |
Forecast Period | 2024 – 2028 |
Quantitative Units | Value (USD Million) and CAGR for 2018-2022 and 2023-2028 |
Report Coverage | Revenue forecast, company share, growth factors, and trends |
Segments Covered | By Type By Service By Technology By Application By Region |
Region scope | West, Midwest, Northeast, South |
Key companies profiled | Schlumberger Ltd, Weatherford International, Halliburton Company, Baker Hughes Company, Gyrodata, Leam Drilling Systems, National Oilwell Varco |
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 United States Directional Drilling Services Market
has been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- United
States Directional Drilling Services Market, By Type:
- Conventional
- Rotary
Steerable System
- United
States Directional Drilling Services Market, By Service:
- Logging-While-Drilling
(LWD)
- Measurement-While-Drilling
(MWD) & Survey
- Motors
(MUD Motors)
- Others
- United
States Directional Drilling Services Market, By Technology:
- Wellbore
Positioning
- Side
Tracking
- Well
Planning
- Others
- United
States Directional Drilling Services Market, By Application:
- United
States Directional Drilling Services Market, By Region:
- West
- Midwest
- Northeast
- South
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present
in the United States Directional Drilling Services Market.
Available Customizations:
United States Directional Drilling Services Market report with the given
market data, TechSci 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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