Directional Drilling Services Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global Directional Drilling Services market reached a value of about USD 10.2 billion in 2021. The industry is projected to grow at a CAGR of around 4% in the forecast period of 2022-2027 to reach a value of about USD 12.9 billion by 2027.

The global Directional Drilling Services industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The rise in drilling activities is driving the industry. North America is the highest category spender by region, driving the demand for the Directional Drilling Services industry.

Industry Definition and Segmentation

Directional drilling or slant drilling is a method used by oil corporations to get access to subsurface sources of oil. Because most oil wells are above the target reservoir, getting to them requires drilling vertically from the surface to the well below. Oilfield directional drilling, utility installation directional drilling (horizontal directional drilling), directional boring, and surface in seam (SIS), which horizontally contacts a vertical bore target to recover coal bed methane, are the four primary groups. The Directional Drilling Services industry report comprises segments by product type (RSS and Down-Hole Motor), application (Onshore and Offshore) and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and Latin America).

North American Region is Driving the Growth of the Industry

North America holds a significant share in the industry as Tight oil and shale gas are becoming an important new energy source in the United States and Canada. The US contains one of the world's largest theoretically recoverable shale gas deposits and the world's second-largest tight oil reserves. Technological advancements have boosted the region's oil and gas directional drilling activity in hydraulic fracturing and low breakeven pricing.

The industry is being aided by the various advantages offered by the process, including flexibility, minor site restoration, low soil contamination, the intense danger of geological anomalies, faster installation at lower prices, reduced maintenance, and operating rig downtime. Furthermore, the service assists in discovering new oil fields, which is propelling the industry forward. Due to many mature areas in both onshore and offshore applications, directional drilling is required to access the maximum reserves and fulfil global demand, further the market's development. Other factors like population expansion and rising living standards in developing nations will result in a significant increase in energy consumption which is likely to impact the market positively.

Despite this, the strict regulatory policies by the government are likely to hamper the market's development.

Best Procurement Practices

The global Directional Drilling Services industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global Directional Drilling Services regions, such as engagement models, contract terms, and buyer and supplier negotiation levers.

Category Management Studies

Drilling a non-vertical well is as simple as directing the drill in the desired direction. A bend near the bit and a downhole steerable mud motor are used in a more complicated directional drilling method. When the drill string is not revolving, the arc sends the bit in a different direction from the wellbore axis, which is accomplished by pushing drilling fluid via the mud motor. After that, the drill string, including the bend, is spun to ensure the drill bit does not drill in a different direction than the wellbore axis. A horizontal well is any wellbore that surpasses 80 degrees and contains more than a 90-degree angle and is drilled across an oil and gas formation to improve output.

Rising Exploration Activities, Further Augmenting the Directional Drilling Services Market

The industry is witnessing growth as new oilfields and deposits are identified globally. In addition, the growing investments by oil field operators and independent exploration companies in exploratory activities to increase their reserve replacement ratio are further bolstering the industry. Furthermore, Deepwater is the most cost-effective source of supply because of falling oil production prices and more significant cost reductions, which are likely to boost demand in the segment. Significant offshore reserves are expected to create a favourable business environment for market directional drilling services, creating newer opportunities.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Directional Drilling Services Industry Report

• Schlumberger Limited
• Halliburton Company
• Baker Hughes Company
• Weatherford International plc
• Scientific Drilling International Inc.

Market Landscape

The top four worldwide vendors dominate the directional drilling industry, accounting for more than 60% of the total market share. Various regional and global firms are constantly trying to create innovative technology and services for drilling applications in the oil and gas sector. Significant oil production corporations focus on mergers and acquisitions, new product development, partnership, cooperation, and joint ventures to enhance their position.

Key Initiatives by Companies

• Nabors Industries Ltd and Chesapeake Energy Corporation signed a contract in November 2021 that named Nabors the preferred drilling contractor for oil and gas projects in the United States. The corporation will most likely be able to grow its business portfolio across the country due to this deal.
• Due to its unique cutting structure and steering mechanisms, Schlumberger debuted an at-bit steerable system for drilling horizontal wells in a single run in October 2019.