ID: MRFR/E&P/6613-HCR | February 2021 | Region: Global | 111 pages
Underbalanced drilling market size is projected to reach USD XX million by 2024 from an estimated USD XX million, with 5.24% CAGR during the forecast period.
The major factors driving the growth of the global underbalanced drilling market include rising demand for crude oil owing to rapid urbanization, increasing exploration and drilling activities, and discovery of new oil and gas deposits. Moreover, there are various oil and gas operators investing in the oil and gas industry due to improving crude oil prices. Moreover, the projected high growth of underbalanced drilling is due to the potential for higher penetration rates, increasing concern about formation damage, and the ability to reduce lost circulation in depleted reservoirs. Additionally, the current trend in drilling and completion activities also present a growth opportunity for the global underbalanced drilling market.
Additionally, the global underbalanced drilling market is projected to grow at a high rate during the forecast period owing to an immediate need to increase productivity and reducing drilling damage. Oil and gas companies are significantly investing in advanced techniques including underbalanced drilling, which increases the productivity of the drilling process and provides cost savings in the digital transformation of oil & gas industry. According to IEA, the demand for oil is estimated to grow by 6.9 million barrels a day by 2023. Thus, governments around the world have developed attractive investment plans to increase their refinery capacity that would further drive the growth of the global market. For instance, in 2018, Indian Oil Corporation announced its plans to invest around USD 24.83 billion to increase its refinery and drilling capacity, improve its petrochemical production, expand gas business, and extend its drilling process. Similarly, in May 2018, Abu Dhabi National Oil Company invested USD 45 billion to expand its facility into one of the world’s largest refining and petrochemical plants, which would boost its refining capacity by 65% to 1.5 billion barrels per day by 2025. These investments would in turn drive the need for efficient drilling techniques in a refinery, thereby boosting the market for underbalanced drilling.
Many players in the global underbalanced drilling market that are actively focusing on signing contracts and agreements with oil and gas operators to offer the best suitable underbalanced drilling systems. For instance, in April 2019, Northland Energy Corporation, a wholly owned subsidiary of Precision Drilling Corporation, entered into a contract with PEMEX for providing integrated multi-well contracts for underbalanced drilling and separation services in the southern region of Mexico. This would additionally also raise the need for proper underbalanced drilling, which is an integral part of exploration and drilling.
The global underbalanced drilling market has been segmented based on technique and application. On the basis of technique, the global market lightweight drilling fluids, gas injection, and foam injection. The foam injection segment is expected to dominate the global market as it provides efficiency during the well hole cleaning process. Due to this, it is considered as the most preferred underbalanced drilling technique. On the basis of application, the global market is divided into onshore and offshore segments. The offshore segment is expected to grow with the highest CAGR during the forecast period due to increasing exploration activities in deep and ultra-deep-sea regions.
The global underbalanced drilling market is expected to witness high growth during the forecast period owing to the increase in oil and gas exploration, rising concern about formation damage, substantial potential for higher penetration rates, and ability to reduce lost circulation in depleted reservoirs.
On the basis of region, the global underbalanced drilling market is segmented into Asia-Pacific, North America, Europe, the Middle East & Africa, and Latin America. North America holds the largest share in the underbalanced drilling market due to the discovery of shale gas reserves in the US and presence of significant number of private oil companies.
Underbalanced drilling is a type of drilling method that is used to drill oil and gas wells. In this method, pressure of the well in kept lower than the pressure of the formations that are being drilled. It differs from conventional overbalanced drilling as a fact that the bottom hole circulating pressure is lower than the formation pressure, thereby permitting the well to flow while the drilling proceeds. This method is considered suitable for minimizing formation invasion problems. Since the majority of hydrocarbons are found in existing fields with depleting pressures or in complex and low-quality reservoirs, the economical use of underbalanced drilling becomes more and more prevalent. The key underbalanced drilling equipment include rotating control heads, chokes, and non-return valves. Moreover, underbalanced drilling services include precise pressure control services, which help deliver high-performance drilling solutions.
|Market Size||2030: Significant Value|
|CAGR||5.24% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Technique and Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Air Drilling Associates Inc. (US), Ensign Energy Services (Canada), Schlumberger Limited (US), Halliburton Inc. (US), Weatherford International (US), National Oilwell Varco (US), Beyond Energy (Canada), STRATA Energy Services (Australia), Kinley Exploration LLC (US), Precision Air Drilling Services Inc. (US)|
|Key Market Opportunities||
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The segments of the underbalanced drilling market on the basis of onshore and offshore.
The underbalanced drilling market is presumed to mark 5.24% CAGR.
Ensign Energy Services (Canada), Air Drilling Associates Inc. (US), Schlumberger Limited (US), Halliburton Inc. (US), National Oilwell Varco (US), Weatherford International (US), Beyond Energy (Canada), Kinley Exploration LLC (US), STRATA Energy Services (Australia), and Precision Air Drilling Services Inc. (US).
North America is projected to hold the highest share.
By technique, the segments are gas injection, lightweight drilling fluids, and foam injection.