Oil and gas drilling automation Market Outlook - 2027
Drilling is a process in which drill bit is used to bore a hole so that it will create a well for the production of oil and natural gas. An equipment of oil and gas drilling consists of number of components such as mud tank, mud pump, motor, and hose. Companies in oil and gas drilling industry are using the equipment which are technologically advanced. It is providing better efficiency as compare to conventional equipment. Automated oil and gas drilling equipment requires less human interference, hence the errors which are caused by human can be reduced. Use of more automation is expected to drive the growth of oil and gas drilling market.
COVID-19 scenario analysis:
- The demand for oil and gas drilling equipment is expected to decrease in the year 2020 due to low demand from oil and gas industry.
- COVID-19 pandemic has shut-down the production of various products in the oil and gas drilling automation industry, mainly owing to the prolonged lockdown in major global countries. This has hampered the growth of oil and gas drilling automation market significantly from last few months, as is likely to continue during 2020.
- COVID-19 has already affected the sales of equipment and machinery in the first quarter of 2020 and is likely to cause a negative impact on the market growth throughout the year.
- The major demand for equipment and machinery was previously noticed from giant manufacturing countries including the U.S., Germany, Italy, the UK, and China, which is badly affected by the spread of corona virus, thereby halting the demand for equipment and machinery.
- Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on its cash reserves. Equipment and machinery companies can afford a full lockdown only for a few months, after which the players would have to modify their investment plans.
- Equipment and machinery manufacturers must focus on protecting their workforce, operations, and supply chains to respond toward immediate crises and find new ways of working after COVID-19 infection cases start to decrease.
Top impacting factors:
Drilling is one of the most important process in extraction of oil and natural gas from the earth’s ore. There is growing demand for fuel globally, because of which oil and gas drilling automation market is growing. New technologies have been introduced in oil and gas drilling equipment. Key players in drilling automation market such as Schlumberger Ltd, ABB ltd, and Siemens AG are working on the R&D of robotic drilling process. As, there are more number of reservoirs in gulf countries such as Saudi Arabia, it is expected that the drilling automation market will get a boost in this region. But, fluctuation in the price of crude oil and high cost associated with the automation could restrain the oil and gas drilling automation market.
Use of New technology:
In June 2018, Siemens AG developed Multi-axial drill floor robot, which company designed for handling pipes and drill heads. This multi axial drill floor robot can be used for onshore and offshore installation. Norway based Robotic Drilling Systems (RDS) and Siemens has developed a drill floor solution which consists of robotic technology. Robotic drill floor solution compromises of various components such as drill floor robots, elevators of different size, automated pipe handlers. This system is designed to reduce the task in which high risk is involved. Use of this system will have benefits like accuracy, efficiency, reliability, and time saving. Due to the Robotic drilling system, rig time per well can be reduced, accidents can be avoided. Also this system provides the benefits such as quick installation, lower noise and low energy consumption.
Also industry has adopted Internet of Things (IoT) system which is proved to be one of the driving factor for the growth of oil and gas automation market. Companies are using internet of things (IoT) system to get in depth information about the ongoing operation and. Rig operators and refineries are using IoT, because it allows them to measure key performance factors such as pressure and velocity. IoT also provides accurate and real time information about data at remote locations which are not easily accessible.
Restraining factors for the growth of oil and gas drilling automation market:
As drilling systems are evolving and becoming more advanced, the cost of the system is also increasing. The cost Robotic drilling system is high as compare to the manual drilling system. This could prove to be the factor which can restrain the growth of oil and gas drilling automation market. Also, prices of crude oil are not stable, this is making the investors to think before investing in the automation of drilling systems. Hence, this can affect the drilling automation market negatively.
Key benefits of the report:
- This study presents the analytical depiction of the oil and gas drilling automation market 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 market share.
- The current market is quantitatively analyzed to highlight the market growth scenario.
- The report provides a detailed oil and gas drilling automation market analysis based on competitive intensity and how the competition will take shape in coming years.
Questions answered in the oil and gas drilling automation market research report:
- What are the leading market players active in the oil and gas drilling automation market?
- What are the driving factors, restraints, and opportunities in the market?
- What are the different segments in the market?
- What are the applications of oil and gas drilling?
Oil and gas drilling automation Market Report Highlights
By End Users
Key Market Players
Honeywell International Inc., Akastor ASA, Kongsberg Gruppen ASA, ABB Ltd., Nabors Industries Ltd., Schlumberger Ltd., National Oilwell Varco Inc., Rockwell Automation Inc., Siemens AG, Ensign Energy Services Inc.