Impact of the COVID-19 Outbreak on the Directional Drilling Market
Directional drilling is the drilling of non-vertical wells. It is an essential practice that is carried out by crude oil producers to optimize the production from the resource land and reach the harshest wells. Directional drilling enables the drilling of oil wells at various angles other than the vertical angle and helps reach better reserves of oil & gas. The increasing shale resolution and surging number of projects, which include drilling operations across the world, are responsible for the growth of the directional drilling market. Besides, the growing demand for crude oil has increased drilling activities. However, the COVID-19 pandemic has drastically impacted the oil & gas industry. The world is facing an economic crisis owing to the epidemic. The demand and prices of crude oil have decreased rapidly during the pandemic, which has resulted in a halt in the directional drilling activities, which is hindering the growth of the market. Besides, the demand for energy due to the increasing population and rise in the standard of living is increasing rapidly. It is necessary to maintain production levels and extract optimal quantities of oil & gas to meet the global requirements. However, the pandemic has also impacted the energy sector, which is hampering the growth of the market.
Projected Change in The Global Demand For Oil Due To Covid-19 In 2020According to the MRFR analysis, regions such as North America and Europe are projected to dominate the market during the review period owing to the increasing oil exploration and drilling activities in the Gulf of Mexico and the North Sea. Besides, these regions have a large number of mature oil wells, which are likely to require drilling. The market is expected to face challenges post the lockdown period.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Source: Secondary Sources