Directional Drilling Services Market Intelligence

Directional Drilling Services Market Description

The global market for directional drilling services is estimated to reach $10.85 billion by the end of 2021 while growing at a continuous CAGR of 6.05 percent. The market is highly consolidated by top global players, such as Schlumberger, Baker Hughes, and Halliburton, which constitute more than 60 percent of the global market share. North America and the Middle East are highly lucrative markets for directional driving as most of the producing wells in these regions have reached market maturity.

The report also provides the regional market outlook of directional drilling services in North America, followed by drivers and constraints that directly impact the market. It also gives Porter’s five forces analysis on factors such as supplier power, buyer power, barriers to new entrants, the intensity of rivalry, and the threat of substitutes. The report also provides an overview of the engagement models and contract practices prevalent in the industry, along with a comprehensive analysis of supply trends and insights. It also explores profiles of key global suppliers, such as Baker Hughes, Schlumberger Ltd., Halliburton Company, Weatherford International, Nabors Industries, Precision Drilling Corporation, and Scientific Drilling International.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

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

Directional Drilling Services Market Trend, Analysis & Forecast

Category Intelligence on Directional Drilling Services covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

1. Executive Summary

1.1 Category Landscape

1.2 Global Market Outlook

2. Market Analysis

2.1 Global Market Overview for Directional Drilling

2.2 Classification of Directional Drilling

2.3 Regional Market Outlook: North America

2,4 Market Drivers and Constraints

2.5 Porter’s Five Forces Analysis:Global

5.3 Key Regional Supplier Portfolio

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