Report Description

United States Oilfield Equipment Rental Market is anticipated to grow at a good pace in the forecast period, 2024-2028. Longer laterals, minimal liner and casing, improved drilling rates, multi-pad drilling, and advances in surface operations, among other technological developments, are expected to drive the market through 2028. Additionally, real-time systems play a key role because there are few ways to monitor activities in unconventional regions; as a result, multilateral technologies are favored for heavy oil applications, propelling the market in the nation. Over the upcoming years, it is projected that all of these factors will strengthen the US oilfield equipment rental market. For instance,U.S. crude oil production was 11.7 million b/d in 2022 and 12.4 million b/d in 2023, which would surpass the record high set in 2019.

Primary oilfield equipment such a hoisting system, a derrick or draw works, and a driving group are used to construct oilfield drilling rigs. A drill string, return lines, pits, a top drive, and a circulating system of pumps are also included in oilfield equipment. Furthermore, well control components are included in oilfield equipment.

Growing Demand for Drilling Rigs

The offshore operators have made major field development investments, in terms of the volume of planned and pipelined projects. While there are fewer projects in the North American and South American markets, they are nonetheless situated in deepwater and ultra-deepwater. Consequently, despite having fewer projects, the United States is anticipated to hold a sizable market share for offshore drilling rig equipment rental.

The shale reservoir has a lower permeability than oil and gas wells in conventional fields, and it has a significantly smaller drainage area. In contrast to wells in conventional fields, which typically have a production life of more than ten years, wells dug in the shale reservoir typically have a production life of less than five years. Additionally, the shale operators now favour horizontal and directional wells in order to enhance the drainage area. These factors indicate that the onshore drilling activity will be significantly impacted by investments in shale oil and gas exploration.

Rise in Deep-Water Projects to offer Robust Opportunities

Over the course of the projected period, an increasing number of deep-water and ultra-deepwater drilling projects will present profitable opportunities for this industry. Since crude oil prices have stabilized, additional efforts have been undertaken, increasing the profit margin for drilling and production businesses. Even though the price of oil and gas has plateaued and dropped by 50% in the most recent years, deepwater development expenditure growth has been exceeding in the past three to four years. Many deepwater projects qualify as so-called "mega projects" because their capital expenditures (CAPEX) frequently exceed USD5 billion. It is challenging to deliver workable financial results in these conditions, especially for major operators and contractors with extensive project management processes and capacities.

The roughly 12 deepwater US Gulf discoveries made in 2021 may rise in the following year, and a few areas that have been patiently enduring price volatility for years may finally receive the green light. The US Gulf presently produces 1.769 million b/d of oil, according to the most recent Platts Analytics estimates. Early in 2022, the output is likely to rise by up to 125,000 b/d and reach 2 million b/d by the end of the year. The three main projects in the Gulf that were in service in 2022 were the Vito field by Shell, Mad Dog Phase 2 by BP, and the three fields managed by Murphy Oil, Khaleesi, Mormont, and Samurai.

Deepwater output is anticipated to increase by more than 60%, from 6% to 8% of total upstream production, between 2022 and 2030. With ultra-deepwater production growing at the fastest rate, by 2024 more than half of all deepwater production will be made at depths of 5,000 feet or deeper.

Increasing production & exploration activities in the oil & gas industry

One of the businesses with a high capital requirement is oil and gas production, which necessitates expensive machinery and highly skilled labor. When a company locates the oil or gas reserves, plans are made for drilling. Numerous oil and gas companies get into agreements with specialized drilling companies and pay for the labor of the crew in addition to the rig's daily rates. The length of the process can be influenced by the drilling depth, rock hardness, weather, and distance from the site. By delivering real-time information and trends, data tracking via smart technology can aid in drilling efficiency and well performance. Although every drilling rig has the same fundamental components, the drilling techniques differ based on the type of oil or gas and the local geology.