Directional Drilling Services Market Intelligence

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With this purchase you will be subscribed for a 12-month PRO membership to the upcoming all new Beroe LiVE (launching in Q3, 2020)

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*These features will be unlocked on the new Beroe LiVE when it launches (Q3, 2020)

Are you looking for answers on Directional Drilling Services category?

Are you looking for answers on Directional Drilling Services category?

  • What are the key trends in Directional Drilling Services category?
  • Am I paying the right price?
  • Am I working with the right supplier?
  • What are the major challenges and risks in Directional Drilling Services industry?
  • How is Directional Drilling Services industry performing?

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Report Coverage

  • Market Trends
  • Technology & Innovation Trends
  • Global Supplier List and Capabilities
  • Mergers and Acquisitions

Table of contents

  1. Executive Summary
  2. Category Landscape
  3. Global Market Outlook
  1. Market Analysis
  2. Global Market Overview for Directional Drilling
  3. Classification of Directional Drilling
  4. Regional Market Outlook: North America
  5. Market Drivers and Constraints
  6. Porter’s Five Forces Analysis:Global
  1. Cost Analysis and Breakup
  2. Cost Analysis
  3. Cost Breakup
  1. Engagement and Contract Practices
  2. Types of Engagement
  3. Contract Practices
  1. Supply Analysis
  2. Supply Market Outlook
  3. Key Regional Suppliers’ Profiles
  4. Key Regional Supplier Portfolio

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Global Market Outlook Directional Drilling Services

  • The global directional drilling service market is estimated at $9.01 billion in 2018 and is expected to reach $10.77 billion by the end of 2021, with a CAGR of 6.13 percent
  • The directional drilling services market is highly consolidated by the top global players, such as Schlumberger, Baker Hughes, and Halliburton, constituting to more than 60 percent of the market share
  • North America and the Middle East regions are highly lucrative markets for directional drilling, due to most of the producingwells have reached to matured stage

 

trend-directional-drilling

  • Directional drilling is a technique of controlling trajectory and deviation of a wellbore, along a pre-planned path to tap the oil from targeted locations, which otherwise would have been left inaccessible
  • Directional drilling allows drilling of deviated/horizontal wells, wells with multiple angles, multilateral wells from the same horizontal wellbore, to reach multiple targets as well as multiple wells from the same location, thereby saving time and cost
  • The directional services market is anticipated to grow at a CAGR of 6.13 percent from 2018 to 2021 to reach $10.30 billion by 2021
  • The supply of complete directional drilling services is consolidated to major service providers. Schlumberger has been a leader in this segment over the years, with a market share of 30 percent globally
  • Globally, North America holds the largest market share, followed by the Middle East, and the demand from this region is expected to dominate in the forecasted period, as more projects are coming up in the near future

Market Drivers and Constraints

Drivers

  • Directional drilling has helped in new oil field discoveries, which otherwise would have been challenging to tap because of geographical location
  • Complex geological structures and Shale are the key drivers for directional drilling in North America and APAC
  • Nearly, 70 percent of the world's oil & gas production accounts from mature fields. This high number of maturing fields in onshore and offshore applications would demand directional drilling to tap the maximum reserves, in order to meet the increased demand globally
  • Ease of mobility in onshore regions allows multiple usages of directional drilling services. This can save a lot of lost time and cost by making the most efficient use of the equipment
  • Rebounding oil prices are driving the companies to carry out E&P activities

Constraints

  • Increasing focus on renewable energy, such as solar, wind, etc., globally is a major concern
  • Stringent regulatory policies and environmental concerns might hold back the market

Cost Analysis

  • Monthly rentals vary from $359,220 to $404,573 in the global market, depending on the suppliers
  • The North American market has the highest prevailing monthly rates, due to the increased number of E&P activities in the Gulf of Mexico and for shale gas
  • Long-term contracts with an assured number of jobs can provide better cost efficiency to the operator
  • Top-tier suppliers are the global suppliers, who charge a premium pricing
  • Low-tier suppliers are restricted to a particular state or a region in a country with limited operations
  • At times, supplier tends to cross-subsidize the personnel day rates with equipment rental to win contracts

Directional Drilling Market Overview

  • Stabilizing crude oil price pushes the supplier power to medium, even though criticality, complexity and technology involved in directional drilling services are high.
  • High switching and learning curve costs incurred would limit the buyer to switch among the suppliers, giving suppliers an added advantage.
  • The horizontal directional drilling market is consolidated by major four players globally, giving an upper hand to the suppliers.
  • Majority of equipment used in directional drilling services are patented to major service providers and are limited to certain providers. Hence, buyer power is less.
  • Complexity of equipment and service, the value it adds to the buyer in decision making make the buyer to rely on major suppliers.
  • Low-tier segments exhibit a power shift toward buyers, but high-tier segments are dominated by the major players in the market.
  • Following the crude oil price crash, many players have downsized their tools and equipment, resulting in a shortage of availability, which might cause a noticeable increase in prices in the near future.
  • Slumberger is a dominant player, in terms of directional drilling market share (more than 30 percent) and technology advancement.
  • The top companies provide lower or breakeven pricing, in order to protect its market share or a particular client.
  • Barrier to entry is high, due to huge capital expenditure.
  • Nearly, 80 percent of the directional drilling service cost is incurred by the equipment, which makes the entry of new players difficult.
  • Manufactures and service companies spend a significant amount of time and money on research and development to meet the challenges and to be competitive in the directional drilling market

Why You Should Buy This Report 

  • Information about directional drilling services market size, overview, drivers and constraints, etc.
  • Porter’s five force analysis of the global directional drilling market. 
  • Cost analysis and cost breakup.
  • directional drilling procurement intelligence, engagement models, contract practices.

 

Directional Drilling Services Market Frequently Asked Questions

  1. What is the anticipated market worth of the global directional drilling service market?
  2. According to Beroe’s directional drilling services market report, the market was estimated at $9.01 billion in 2018. By the end of 2021, it is expected to reach $10.77 billion growing at a CAGR of 6.13 percent.
  1. Who are the key players in the global directional drilling services market?
  2. Schlumberger, Baker Hughes, Halliburton, Weatherford, Scientific Drilling are the top global players contributing to more than 60 percent of the total directional drilling services market size. Over the years, Schlumberger has been the market leader with a global share of about 30 percent.
  1. Which markets are highly lucrative for the directional drilling market?
  2. As most of the producing wells have reached their matured stage, North America and the Middle East regions are highly lucrative markets for directional drilling.
  1. What are the major market drivers for directional drilling services?
  2. The following factors drive the growth of the drilling services market. · Discovery of new oil fields due to directional drilling · Complex geological oil field structures and Shale are the key drivers for the market in North America and APAC · High number of maturing oil fields in onshore and offshore applications · Ease of onshore mobility allowing multiple usages of directional drilling services · Recovering crude oil prices
  1. What are the major constraints for the drilling services market?
  2. The emerging renewable energy markets and the stringent government and environmental regulatory prices are turning out to be major constraints for the drilling services market.
  1. Which market region is expected to see significant demand in the near future?
  2. As per Beroe’s drilling services market outlook reports, North America holds the largest market share followed by the Middle East. As more projects come up in the near future, the demand from these regions will dominate the market.
  1. What are the factors responsible for giving an upper hand to the suppliers in the directional drilling services market?
  2. The supplier power is pushed to medium due to the stabilizing crude oil prices although the criticality, complexity, and technology that the services involved are high. Suppliers gain an added advantage because of the high costs involved in the switching and learning curve that limit buyers from switching among the suppliers. Moreover, the horizontal directional drilling market is consolidated by four major players globally.
  3.  
  1. Why do buyers have to rely on major suppliers?
  2. The first reason is, a majority of the equipment used in directional drilling services is patented to major service providers due to which buyer power is less. Secondly, the equipment and services are quite complex which makes the buyer rely on major suppliers.
  3.  
  1. How did the crude oil price crash affect the drilling services market?
  2. After the crude oil price crash, many players downsized their tools and equipment leading to a shortage of availability. Consequently, this might cause a noticeable rise in prices in the future.

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