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
Table of contents
Global Market Outlook
Global Market Overview for Directional Drilling
Classification of Directional Drilling
Regional Market Outlook: North America
Market Drivers and Constraints
Porterâ€™s Five Forces Analysis:Global
Cost Analysis and Breakup
Engagement and Contract Practices
Types of Engagement
Supply Market Outlook
Key Regional Suppliersâ€™ Profiles
Key Regional Supplier Portfolio
Want a more detailed personalised report?
Industry Outlook & Drivers
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
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
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
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
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.