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. 

Market Trends

• 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 from 2020 to 2030.
• 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.