Sidetracking Market Outlook - 2027
Sidetracking is the advanced technique of drilling a secondary wellbore away from the original wellbore. It mainly helps to maximize hydrocarbon recovery by easy reach to untapped reserve. Oil and gas companies focus to increase drilling activities by exploring untapped reserves to meet the energy demand. Various applications of sidetracking include damage to the hole by junk, damage to the production zone in the original well, tap into another less depleted drainage area, and others. Moreover, the rise in demand for energy, urbanization, industrialization, growing exploration, and others are some of the factors, which fuel the market growth over the forecast period.
COVID-19 scenario analysis
The COVID-19 pandemic has disrupted the global economy. Global level travel bans along with grounding of international flights leads to heavy reduction in consumption of aviation turbine fuel across the globe. This has resulted in reduced overall demand for oil. Moreover, the pandemic has restricted all forms of mobility; therefore, fuel consumption by the transport sector is expected to fall sharply. The drilling sector is also facing difficulties due to lack of man power. The spread of the virus is expected to be more in drilling areas as there is large number of employees working in groups. These factors are expected to reduce the demand for sidetracking in the present scenario.
Market scenario analysis
The rise in population and economic development across the world has increased the global energy demand. The rise in global energy demand is a key factor that is expected to propel the market over the forecast period. Moreover, the requirement of production optimization across mature oil and gas fields also drives the market growth. Furthermore, the demand for natural gas has also increased due to its eco-friendly property. Therefore, oil and gas companies are expected to focus on increasing drilling activities by exploring untapped reserves to meet the growing energy demands across the globe. Additionally, rise in oil and gas drilling for more reserves is expected to witness many mechanical failures. This is expected to further increase the requirement for sidetracking drilling operations. However, government regulations for drilling operations and transportation activities in the oil and gas industry have made oil and gas operators to restrict themselves from making investment decisions. Therefore, this can hinder the growth of the global sidetracking market over the forecast period.
Market trends and drivers
Mature oil and gas fields have already attained their peak production, and are on the declining phase. The hydrocarbons present in these oilfields are recovered with the help of conventional methods such as natural reservoir pressure. However, this method can only recover a small percentage of hydrocarbons. As a result, oil and gas companies use advanced techniques, such sidetracking, to optimize oil and gas recovery and increase productivity. Sidetracking helps in easy reach to untapped reserves and attains maximum hydrocarbon recovery. Therefore, the adoption of this technique over the conventional methods is expected to drive the market growth over the forecast period. Oil and gas companies increasingly focus on automation in their oilfield activities to optimize processes with minimum human intervention. Directional drilling operations are also being automated to increase their productivity, efficiency, safety, and quality. Moreover, automation of directional drilling is expected to eliminate the need for continuous monitoring and help to overcome challenges such as varying geographic conditions and time lag between the drilling control systems. Therefore, automation of the directional drilling technique is expected to drive the growth of the sidetracking market over the forecast period.
The market leaders of the sidetracking market are present in Europe. The region is expected to offer several growth opportunities to the market players during the forecast period. Increase in investments and new oil and gas discoveries are anticipated to significantly boost the sidetracking market growth in this region. Therefore, the market growth rate in Europe is expected to be faster than the MEA, North America, and South America.
Key benefits of the report:
- This study presents the analytical depiction of the sidetracking 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 sidetracking market share.
- The current market is quantitatively analyzed to highlight the sidetracking market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed analysis based on competitive intensity and how the competition will take shape in coming years.
Sidetracking Market Report Highlights
Key Market Players
Nabors Industries Ltd., Weatherford International Plc, Equinor ASA, Odfjell Drilling Ltd., Yantai Jere Oilfield Services Group Co. Ltd., National Oilwell Varco Inc., Baker Hughes Co., Schlumberger Ltd., Eurasia Drilling Co. Ltd, Halliburton Energy Services, Inc.