Geosteering technology is used in adjusting well placement during drilling to improve the overall performance of the well. This technology uses information from multiple equipment, geological insights, and other critical data to reposition or redirect the equipment during the drilling process. It is a process of drilling a borehole and adjusting the borehole position to help it reach one or more targets. With the advent of rotary steerable tools and an ever-expanding arsenal of geophysical tools, well placement can now be done with ever-increasing accuracy. The basic tool configuration includes direction & tilt sensors and gamma ray tools. The data transmitted to the surface is a carefully selected portion of what is available, especially due to the vast amount of data produced by imaging tools. When the tool returns to the surface, data is collected for a data dump in memory.
Market Scope and Structure Analysis
Description
The geosteering technology market includes logging while drilling, measurement while drilling, drive systems, and rotary steerable systems. Logging while drilling (LWD) is an oilfield technique that incorporates a tool within drill strings to aid in the transmission of real-time formation data. LWD ensures subsurface measurement in conditions where traditional wireline tools are unable to measure wellbores. These tools collect evaluation data, specific to oil & gas reserves and drilling and aids in timely decision-making and accurate well-placement of drilling equipment.
COVID-19 Impact analysis
- The COVID-19 pandemic halted the production of various products in the geosteering technology industry, which is attributed to the global lockdown. This hampered the growth of geosteering technology market in the last few months and is likely to continue through 2022.
- COVID-19 affected the sales of geosteering technology in the first quarter of 2021 and is anticipated to have a negative impact on the market growth throughout the year.
- The major demand for geosteering technology was previously noticed from giant manufacturing countries, such as North America, Europe, Asia-Pacific, and South America, which are negatively affected by the spread of the coronavirus, thereby declining the demand for yarders.
- Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on its cash reserves. Geosteering technology manufacturers can afford a full lockdown only for a few months, after which the players have to modify their investment plans. For instance, various players in the market halted their production activities for several weeks to reduce the expenses. On the contrary, few players adopted employee lay-offs to sustain themselves during the COVID-19 health crisis.
- Geosteering technology manufacturers are expected to focus on protecting their workforce, operations, and supply chains to respond toward immediate crises and find new ways of working after COVID-19. For instance, provision of sanitizers, maintaining social distance, and ensuring the vaccination of every employee in the company is expected assist in promoting the health and safety of the workforce.
Top Impacting Factors
Rise in demand for oil and gas is major driving factor for geosteering technology. Oil and gas companies use geosteering technology to increase efficiencies, reduce production costs, and optimize well placement. Another factor expected to support market growth is the increase in use of horizontal directional drilling techniques. Geosteering is used in mature oil and gas areas to keep the wellbore in a specific reservoir section, reducing gas or water breakthrough, and improving economic productivity. Geosteering drilling techniques aid in the resolution of issues such as deep and thin reservoirs and unstable structure margins.
- Rise in demand of oil & gas and petroleum is propelling the geosteering technology market growth forward. Various key players are providing integrated solutions to accelerate development of oil and gas reserve. For instance, in October 2021, Schlumberger offered a significant contract for the engineering, procurement, construction, and installation (EPCI) of end-to-end production solutions for the Sakarya gas field. The integrated project scope will include well completions, subsea production systems, and design & construction of wells.
- Increase in oil production in various countries such as the U.S. and Saudi Arabia. For instance, data according to the U.S. Energy Information Administration (EIA) shows that as of December 2021, U.S. oil productions was at 11.8 million barrels per day. Similarly, Saudi Arabia oil production is 9.90 million barrels per day.
- Key players are developing advanced and new generation geosteering technology software to strengthen their market position. For instance, in November 2021, Halliburton Company came up with iCruise X intelligent rotary steerable system. This next generation drilling system takes less time and is designed for tough application. It will deliver precise well placement and drilling system.
Key Benefits of the Report
- This study presents the analytical depiction of the geosteering technology industry along with the current trends and future estimations to determine the future investment pockets.
- The report presents information related to key drivers, restraints, opportunities, and geosteering technology market share.
- A quantitative analysis highlights the geosteering technology growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed geosteering technology analysis based on competitive intensity and how the competition will take shape in coming years.
Geosteering Technology Market Report Highlights
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