ID: MRFR/E&P/1057-CR | February 2019 | Region: Global | 104 pages
The managed pressure drilling market is surging in the global market, and in the upcoming years, it will attain its optimum level. The estimation of market value from 2018 to 2023 will reach up to USD 4750.1 million, and the compound annual growth rate of managed pressure drilling market is expected to be 3.92 percent in the forecast period.
The most common application of managed pressure drilling is in the deep offshore gas and oil wells. The process of oil and gas extraction requires cautionary measures as these substances are extremely volatile. The managed pressure drilling market provides simulation programs in a properly monitored environment that allows companies to derive necessary conclusions. These systems are the most efficient and safe methods for drilling activities that fuel the managed pressure drilling market growth. Generally, offshore projects are difficult to drill and include many technical constraints.
There are many issues related to drilling activities like loss of circulation, twisting off, stuck off, kick, or loss scenarios which elevate the cost of several projects. The managed pressure drilling market is an effective way to curtail many aforementioned problems. It provides various advantages such as enhanced penetration rate, avoiding kick or loss, drilling with small pressure window, reduced casing numbers, precisely operated mud programs, wellbore ballooning early identification, enhanced efficiency, and less non-productive time. The advent of managed pressure drilling market trends allows access to industries for better exploration and extraction methods that are very difficult in nature. As the oil and gas industries are becoming more competitive, the adoption and implementation of managed pressure drilling market are going to stay strong in the forecast period.
The world crude oil production in 2017 increased by 0.6 million barrels approximately per day.
The existing wells are depleting day by day, and therefore, it requires new locations. These new locations are extremely critical to operating as they are mostly found in deep seas. The managed pressure drilling industry facilitates advanced extraction and drilling technologies that enable companies to execute difficult tasks.
The report highlights the overall scenario of the managed pressure drilling market and covers an analysis of the COVID19 impact on the managed pressure drilling industry. It provides deeper insights into market dynamics and describes the key players of the market that influence the managed pressure drilling market growth. The report includes different market segments of the global managed pressure drilling industry and provides details about different regions that will drive the market potential in the forecast period.
The managed pressure drilling market analysis is researched on different geographical regions such as North America, South America, Europe, Asia Pacific, Middle East, and Africa (MEA). The North American region holds the one-third majority of the managed pressure drilling market share. North America in 2017 had managed pressure drilling market revenue around USD 1801.9 million, and the estimated CAGR is 4.15% for the forecast period. Adoption of drilling technologies is rising with an increase in exploration in deep water in the region support the managed pressure drilling market growth. In the same year, Asia pacific held 27.65 percent of the market share, and Europe held 16.10 percent of the global managed pressure drilling market share.
Competitive Landscape for the market
The prime key players of the global managed pressure drilling market are:
The outbreak of the COVID19 pandemic has adversely affected the global economy and pushed financial growth to lower extremes. Industries and working fields were closed for an uncertain time period, which resulted in heavy financial losses during the lockdown. Every sector faced a crisis in both health as well as economic growth. The lockdown measures abruptly shut down the industrial works and disrupted the entire supply chain. The demand to supply gap kept widening, and companies witnessed a delay in several projects. The oil and gas exploration and drilling activities also hampered and encountered many operational challenges which required manual work. However, the managed pressure drilling market still maintained steady growth as the advanced technologies helped companies to continue their work with less technical difficulties and manual work.
The oil and gas extraction and exploration industries are the prime drivers of the managed pressure drilling market growth, which pushes the market growth to optimum limits over the years. The increasing drilling activities in deep seas and ultra-deep seas for oil and gas extraction and exploration result in expanding the managed pressure drilling market size. The managed pressure drilling industry enables exploration and extraction activities that are difficult to perform in nature and allows drilling offshore projects which have many technical constraints. The oil and gas drilling activities include certain cautionary measures as these substances are highly volatile and therefore require managed pressure drilling systems that are efficient and safe. These features encourage increasing the managed pressure drilling market value.
Another major driving force of managed pressure drilling market growth is the elevation of modern technological advancements for high-pressure, high-temperature (HPHT) drilling of wells. The drilling activities are extremely critical to perform as it raises a lot of problems such as loss of circulation, twisting off, stuck pipe, kick or loss scenarios, and many more. The managed pressure drilling market acts as a helping hand in resolving all these issues and advantages in improved penetration rate, narrow passage window drilling, avoid kick or loss, managing mud programs, wellbore ballooning early identification, less casing number, high efficiency, and less non-productive time. The increase in exploration and extraction activities of oil and gas industries is becoming competitive, which will escalate the managed pressure drilling market growth in the near future.
The managed pressure drilling market value is booming rapidly in the global economy, and the market potential is rising to a greater extent. Many industries have opted out of industrial 4.0 and taking different steps for its adoption and implementation. The lockdown measures led to the closure of industrial operations, and the companies faced challenges in performing manual work. So, a spurge of automation implementation for industrial operations is arising.
The outdated technologies were unable to drill in deep water and encountered many technical constraints, which increased the demand for modern technologically advanced systems. The automated systems allow easy monitoring, increases efficiency, helps in the early identification of problems, increases accuracy as well as production rate. The oil and gas industries' exploration and extraction activities are rising, which will eventually raise the adoption of managed pressure drilling systems and enhance the managed pressure drilling market growth in upcoming years.
The managed pressure drilling market value was affected during the COVID19 outbreak and acted as a major restraint for the managed pressure drilling market. Industrial works were put at a halt, and various projects were delayed during the lockdown. The decline of manual operations in companies led to an intense rise in automated systems. The demand for managed pressure drilling industry increased as the technological developments increased the performance of oil and gas extraction and exploration. The advancements in managed pressure drilling market will increase its value over the forecast period.
Market growth challenges
The lithium-ion batteries of managed pressure drilling systems are prone to overheat, which creates a major security concern. These concerns can hinder the managed pressure drilling market growth in the forecast years. The managed pressure drilling market analysis suggests that the upcoming managed pressure drilling market trends will overcome the current issues and drive the market potential to greater heights.
Value Chain Analysis
The managed pressure drilling market outlook represents that the market value will exceed its historical statistics in the upcoming years. The managed pressure drilling market revenue is rising at a faster rate, and within few years, the managed pressure drilling market value will reach its maximum potential. The demand for technological developments in drilling activities industries fuels the market growth and expands the managed pressure drilling market size.
The global managed pressure drilling market is segmented on the basis of tools, technology, application, and region. The managed pressure drilling market share segmentation on the basis of tools includes non-return valves (NRV), rotating control devices (RCD), and Choke manifold systems. The technology segment comprises mud cap drilling, constant bottom hole pressure, return flow control drilling, and dual gradient drilling. On the basis of application, the managed pressure drilling market share involves onshore and offshore activities. The region segmentation of managed pressure drilling market consists of different areas like North America, South America, Europe, Asia Pacific, Middle East, and Africa (MEA).
|Market Size||2023: USD 4,750.1 million|
|CAGR||3.92% CAGR (2020-2027)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Technology, Tool, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Schlumberger Limited, Air Drilling Associates, Inc., Beyond Energy, Weatherford International, Nabors Industries Ltd., Ensign Energy Services, AFGlobal, Halliburton Inc., Enhanced Drilling Services, National Oilwell Varco, Oilserv|
|Key Market Opportunities||Growing Shale Production|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The global managed pressure drilling market is predicted to grow at a 3.92% CAGR between 2017- 2023.
The managed pressure drilling market is predicted to reach USD 4,750.1 million by 2023.
North America will lead the global managed pressure drilling market.
Escalated technical advancements and industrialization are the key driving the global managed pressure drilling market growth.
Key contenders profiled in the global managed pressure drilling market include National Oilwell Varco (US), Air Drilling Associates (US), Ensign Energy Services (Canada), Schlumberger Limited (US), Halliburton Inc (US), Weatherford International (US), Oilserv (UAE), Enhanced Drilling Services (Norway), Nabors Industries Limited (Bermuda), AFGlobal (US) and Beyond Energy (US).
Global managed pressure drilling market is projected to witness 3.92% CAGR during the forecast period (2018-2023) and reach a valuation in excess of USD 4,700 Mn. Managed pressure drilling is commonly used in deep offshore oil and gas wells. It is one of the most safe and efficient system. Oil and gas extraction entails a certain degree of caution given the high volatility of such substances. Managed pressure drilling facilitates simulation programs in a controlled environment, which allows oil and gas companies to draw appropriate conclusions.
Globally, half of the offshore projects are un-drillable due to the technical constraints. Drilling-related problems raise the issue of loss of circulation, stuck pipe, twisting off, kick/loss scenarios, which increase the cost of drilling in various projects. This is where managed pressure drilling (MPD) plays an important role in overcoming many of the aforementioned obstacles. There are several benefits of MPD such as avoid kick loss, improved rate of penetration, drilling with narrow pressure window, accurately managed mud programs, reduced number of casing, early identification of wellbore ballooning, reduced nonproductive time and improved drilling efficiency.
The arrival of advanced MPD is allowing companies to perform exploration and extraction procedures that are extremely critical in nature. With oil and gas companies aiming to become more competitive, adoption of MPD systems is likely to remain strong during the forecast period.
The segmental analysis of the global managed pressure drilling market has been conducted on the basis of technology, application and region.
Based on the technology, the market is segmented into constant bottom hole pressure, mud cap drilling, dual gradient drilling, and return flow control drilling. The constant bottom hole pressure segment is expected to remain highly attractive during the assessment period. In 2017, the segment accounted for 57.53% market share and is set to exhibit a CAGR of 4.67% till 2023. The dual gradient segment currently accounts for the second largest market and is likely to grow at a steady pace over the next several years.
On the basis of tool, global managed pressure drilling market is segmented into rotating control device (RCD), non-return valves (NRV), and choke manifold systems. The rotating control device segment currently accounts for more than 40% share of the market and is projected to attain a valuation of over USD 2,000 Mn by the 2023. The non-return valve segment holds the second spot and is likely to post a CAGR of 3.94% during the forecast period.
On the basis of application, the market has been segmented into onshore and offshore. The later will continue to outperform the former throughout the assessment period. In 2017, the offshore segment accounted for 65.27% share of the market and is likely to post a CAGR of 4.02% till 2023.
On the basis of region, the market is segmented into North America, Asia Pacific, Europe, Latin America and the Middle East & Africa (MEA). North America currently accounts for more than one-third share of the global market in terms of revenue. The market in North America stood at a valuation of USD 1,801.9 Mn in 2017 and is projected to post a CAGR of 4.15% during the forecast period. According to BP statistical review, North America had crude oil production of 820,000 barrels per day in the year 2017. Faster adoption of drilling technologies coupled with increased exploration of wells in deepwater and ultra-deepwater in North America is supporting the growth of the market in the region. North America followed by Asia Pacific and Europe respectively. In 2017, Asia Pacific accounted for 27.65% market share while Europe accounted 16.10% market share.
Some top-notch companies operating in the global managed pressure drilling market include Ensign Energy Services, Air Drilling Associates, Inc., Enhanced Drilling Services, Schlumberger Limited, Halliburton Inc., Weatherford International, National Oilwell Varco, Nabors Industries Ltd., Oilserv, AFGlobal, and Beyond Energy.
Global Managed Pressure Drilling Market: Competitive Landscape
Schlumberger Limited (US), Halliburton Inc (US), Weatherford International (US), National Oilwell Varco (US), and Nabors Industries Limited (Bermuda) are the major five players operating in the global low-voltage circuit breakers market. Schlumberger Limited held the largest share among top five players with a share of 27.7% in 2017, followed by Halliburton Inc and Weatherford International with respective shares of 16.3% and 5.6% repectively. These companies are adopting strategies such as expansion and merger & acquisition to improve their position in the market. Companies are competing based on cost, product quality, and reliability and its vital for them to offer cost-effective and superior technology to succeed in the competitive market.
Schlumberger Limited is one of the largest oilfield service providers. Schlumberger operates in four segments, namely reservoir characterization group, drilling group, production group, and Cameron. The drilling segment of the company deals with technologies involved in the drilling and positioning of oil and gas wells. Mi SWACO, a subsidiary of Schlumberger, provides engineered MPD solutions to the company. Schlumberger offers a wide range of drilling services including directional drilling, drilling optimization, rhino integrated borewell enlargement system, MPD, coiled tubing directional drilling, casing-drilling, liner-drilling and seismic-guided drilling. The company also focuses on new contracts from the international clients to improve its financial position. It is continuously working on expanding its activities, globally and become a market leader in the highly competitive market.
Halliburton Inc. offers products for exploration, development, and production for different types of oilfields including deep-water, mature, and unconventional oilfields. It also offers a wide variety of oilfield drilling services that can be used by clients, some of them being coring, directional drilling, geosteering services, and measurement while drilling and optimized pressure drilling. MPD services offered by the company help exploration and production companies access bottomhole pressure, to help them increase their asset value by reducing uncertainties. For business development, Halliburton emphasizes on expansion to expand its geographical presence and improve operational efficiency. For instance, the company opened its new Indonesian headquarters in Jakarta. This facility serves as Halliburton’s headquarters for all of its business lines in Indonesia and offers services to support the oil and gas industry in the country.
Weatheford International operates through the following product and services segments: formation evaluation, drilling, completions, productions, abandonment, tubular running services, rigs, rig equipment and software. It offers a variety of drilling services including surface logging systems, closed-loop drilling, rental tools and services, drilling waste management, pressure control, liner system, cementing and drilling optimization. Weatherford offers MPD of two types, namely semi-automated and automated. The company has a wide operational portfolio, which is segmented regionally as western and eastern hemisphere, across the globe. Weatherford is focusing on expansions as its key growth strategy. The company operates in the key production areas of oil and gas, and markets its products globally, to gain a larger share in the Managed Pressure Drilling (MPD) market.
National Oilwell Varco is engaged in various operations including production, design, and supply of equipment for oil and natural gas exploration and production, transportation and recovery processes. It deals in three major segments including rig systems, wellbore technologies, and completion and production solution. National Oilwell Varco focuses on serving the oil and gas field developments that are cost-effective, efficient, safe, and environment-friendly. Its primary objective is to continuously expand and improve its position in the marketplace, as a leading provider of technology and equipment in the upstream oil and gas industry.
Nabors Industries Ltd. is one of world’s largest drilling rigs (offshore and onshore) fleet providers across the world. It offers directional drilling services, innovative technologies, and performance tools for its own and for the third parties. It is well positioned in the competition-driven environment with seamlessly integrated downhole hardware, equipment and software solutions, which are required in rig design. Nabors focuses on raising the value for shareholders and investors by achieving better operational performance and HSE. Additionally, it is enhancing its technology and advancing the drilling techniques.
The growth of the market vendors is dependent on market conditions, government support, and industry development. Players focus on strengthening their presence worldwide through expansions followed by mergers & acquisitions during the forecast period. These strategies are widely adopted to increase their presence and the customer base. The competitive environment in the market is likely to intensify further due to the increase in business expansions and research & development.