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.