The managed pressure drilling market is witnessing significant growth and is anticipated to grow steadily throughout the forecast period. The oil and gas industry is one of the most important contributing factors in the formation of modern world. Oil and gas products are extensively used to fuel vehicles and industries. Furthermore, the by-products of oil refining industry are used for manufacturing products such as asphalt and tar. Thus, the necessity of oil and gas in modern world fuels the demand for processes such as managed pressure drilling. Managed pressure drilling is cost-effective and reduces losses. The managed pressure drilling processes, such as mud cap drilling, is especially suitable for use in drilling highly depleted and naturally fractured formations. Thus, managed pressure drilling techniques can be used for drilling difficult and previously un-drillable wells. Major players in the industry are focusing on extensive research to further enhance the effectiveness and cost-efficiency of managed pressure drilling.
Managed pressure drilling (MPD) is an adaptive drilling technique that is used to precisely control downhaul of an annular pressure profile. The primary objective of this process is to ascertain the downhaul pressure under environment limits and manage the annular hydraulic pressure profile according to the surrounding conditions. Managed pressure drilling creates a closed-loop circulation system in which pore pressure, formation fracture pressure, and bottom hole pressure are efficiently managed. Water is commonly used as a drilling fluid in managed pressure drilling.
COVID-19 Impact analysis
- The COVID-19 pandemic halted the production of various end users in the managed pressure drilling industry, attributed to global lockdown. This has hampered the growth of the market in the last few months and is likely to continue in 2021.
- Due to the steep decline in demand for oil and gas products, COVID-19 has already affected the sales of managed pressure drilling since second quarter of 2020. It is anticipated to cause a negative impact on the market growth throughout the 2021.
- The major demand for managed pressure drilling was previously noticed in giant manufacturing countries including the U.S., India, the UAE, and China, which were adversely affected by the spread of the coronavirus and reduced demand for managed pressure drilling.
- Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on their cash reserves. Managed pressure drilling companies can afford declining sales only for a few months, after which the players have to modify their investment strategies. 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.
- With the increasing number of vaccinations and leniency in restrictions laid by the government, the oil and gas industry has shown signs of recovery, which is a positive factory for the managed pressure drilling market.
Top Impacting Factors
Increase in number of vehicles and industries fuels the demand for various oil and gas products. To meet this rise in demand, many governments are increasing their expenditure on exploration of new oil and gas fields. For instance, the U.S. emerged as a leading producer of petroleum and natural gas in recent years, and the developing countries such as India and China have sustainably increased their expenditure on oil refining projects. Thus, increased exploration results in drilling of new wells, thereby boosting the managed pressure drilling market. Furthermore, managed pressure drilling reduces wastage and is a cost-effective process, which increases its use. However, frequent fluctuations in the prices of hydrocarbons and increase in environmental concerns are some of the restraints on the growth of managed pressure drilling industry. According to International Energy Agency (IEA), by 2024, the global oil consumption is expected to reach 104.1 mb/d, which will be an increase of 4.4 mb/d as compared to 2019 levels. Increase in oil demand will result in increased extraction activities, thereby providing lucrative growth opportunities for the market.
- Major players in the industry are focused on developing systems that provide enhanced control over the wellbore. For instance, in May 2019, Halliburton introduced Flex, which is a managed pressure drilling system that gives better circulating density control throughout the wellbore. The system can update mud properties in real-time by using the Baralogix density and rheology units.
- In March 2021, Enhanced Drilling partnered with Transocean to develop a new Enhanced Kick Detection system (EKD) that is capable of eliminating the external effects of rig and slip-joint motion. The new system provides an accurate measurement of return flow, enabling rapid detection of flow anomalies, thereby reducing flow verification time.
- A/S Norske Shell signed a contract amendment with Enhanced Drilling, which is a Norwegian oilfield services company for the use of EC-Drill, a controlled mud level (CML) system. The operation will utilize a combination riserless mud recovery (RMR) and CML system on the Ormen Lange Field.
Key Benefits of the Report
- This study presents the analytical depiction of the managed pressure drilling industry along with the current trends and future estimations to determine the future investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the managed pressure drilling market share.
- A quantitative analysis highlights the managed pressure drilling market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed managed pressure drilling market analysis based on competitive intensity and how the competition will take shape in coming years.
Managed Pressure Drilling Market Report Highlights
By End-user Industry
By Business Type
Key Market Players
Schlumberger, Expro Group, Baker Hughes, Weatherford International, AKITA Drilling, Atwell LLC, National Oilwell Varco, Superlative Oilfield Services, Halliburton, Compass Well Services