Directional drilling is technique where multiple holes are dug from same surface. This form of digging is used by oil companies for accessing the reservoir of oil which saves the operational cost and done with less damage to the environment. The directional drilling has been a part of oil industry for a longer period. The use of Directional Drilling has economic uses as well for the oil drilling companies because it has low maintenance and low equipment cost which is why it is preferred mainly. With the rising demand for sources of energy, companies are investing huge amount into advanced methods for drilling services. Use of advanced tools and technique for the discovery for finding new reservoirs with minimum expense and drilling them to bring out maximum output. The market will be driven by increasing demand for energy, rapid industrialization.
COVID-19 Impact analysis
- The COVID-19 outbreak has highly impacted the oil & gases market. With rise in cases day by day, countries have been under complete lockdown. This resulted in low sales of automobiles and halt in industries such as airlines, transportation, and oil production.
- The companies have to follow the lockdown protocol and shut down their production unit as per government rules and regulation. Also, because of shortage of labor and including their safety. Many ongoing projects have to be temporarily ceased with immediate effect. The oil & gas price and supply have been affected globally.
Top Impacting Factors
The population is growing rapidly and so the demand for energy. The demand is more from developing countries owing to increasing infrastructure and changing lifestyle of people. To cope up with the demand it has become important to discover new oil and gas fields, to meet the energy demand. Thus, the market has been expanding due to increasing investment. The fluctuating crude oil price in global market oil field operators are cutting down their expenses in field operations. Also, the government is now strict on the oil & gas mining. In several regions, government has applied some rules and regulation regarding the safety of workers and environment. The companies have to submit a rough plan to the government about their drilling plans and environment safety measures which they are taking. Apart from this, the list of equipment to be used and an evacuation plan in case of emergency if anything happens. Before drilling to get the permissions can take time and slower down the production and increase in production cost, which is expected to hamper the directional drilling services market. The increase in adoption of green energy sources will reduce dependency on oil & gas in the future is expected to affect the directional drilling services market.
- The growing investment in off-shore sector to find more reservoirs and increase the oil & gas production. This makes it the fastest growing segment into the market. Countries like China, America, and Russia have already invested, because the cost of offshore drilling has declined over the past few years.
- Currently the demand for coal, gases and fuels for transportation has been increasing due to globalization and urbanization, which needs the expansion of oil & gas industry and biggest market vendors such as China, Russia and the U.S. have increased their investment in search for oil fields.
- The increased use of energy has expanded the global oil & gas industry. They are mainly used for the purpose of transportation, power generation, and industrial use with many other industries.
- Technological advancement which helps drillers to go into more depth and advancement of drilling tools with better visibility under the water, America is dominating the market because of their better technology.
- Countries which are largest consumer of oil & gas are China and the U.S.; they are investing more into renewable source of energy power generation to reduce carbon emission and their dependency on fossil fuels. They are setting hydro, solar and wind power energy substation at a larger extent, which will affect the oil, gas and drilling market at a larger level.
Key Benefits of the Report
- This study presents the analytical depiction of the directional drilling services industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the directional drilling services market share.
- The current market is quantitatively analyzed to highlight the directional drilling services market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed directio
Directional Drilling Services Market Report Highlights
By Drilling Technique
By Service Type
Key Market Players
Nabors Industries Ltd, Weatherford International Plc, National Oilwell Varco, Jindal Drilling & Industries Limited., Cathedral Energy Services Ltd, Schlumberger Limited, Halliburton Company, Baker Hughes Incorporated, General Electric Oil & Gas