Directional Drilling Services Market

Directional Drilling Services Market is expected to witness a CAGR of approximately 4.1% during the forecast period, 2023-2030.

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Major Directional Drilling Services Market Drivers

Directional drilling services market is primarily driven by growing demand for energy, on-going investments in offshore upstream sector and increasing pressure on oil and gas companies to increase their output. Increasing population growth rate worldwide coupled with improvements in the living standards of people and growing urbanization, are propelling the global energy demand. As per United Nation’s report, world’s population reached around 8 billion in 2022, this figure is estimated to increase by 1.7 billion in coming 8 years. As the population growth rates increases, so will the demand for energy for supporting economic growth. Fossil fuels like oil and gas holds a major share in the global energy mix. Increasing energy demand will create the need to explore and produce oil and gas, which in turn will boost the adoption of directional drilling techniques of directional drilling as it increases the overall efficiency of oil and gas extraction by causing minimal impact to the environment, thus creating lucrative growth opportunities for directional drilling services market.

Directional drilling services include methods that help in effectively drilling the well and increases the output by producing through well. Moreover, the rising number of discoveries in the oil and gas sector is surging the demand for directional drilling services. For instance, new discoveries of 42 oil wells and 11 gas wells were made in the Western Desert, Suez Canal, in the Mediterranean sea in 2022. As per the European Energy Industry Investments, power utilities planned to invest USD 295 billion for 2021-2030 under new policy scenarios in the transmission and distribution infrastructure. The increasing number of construction activities related to commercial spaces, housing societies, and business parks is projected to increase the demand for power, which is accelerating directional drilling services market. However, various countries around the world are investing in renewable energy projects to combat climate change coupled with fluctuations in the oil prices are hampering the market growth.

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According to directional drilling services market report, Onshore segment is projected to hold the largest market share.

Onshore directional drilling services offers various benefits like lower operating cost, resource availability, easy drilling methods and lower drilling cost, which are boosting its demand in the directional drilling services market. Offshore applications segment is projected to grow at a robust CAGR. Fall in the cost of oil production, is boosting the deepwater oil production, which is augmenting the segment’s growth. United States, Angola, Brazil, and Nigeria are the major producer of deepwater oil. As per recent estimates, the total production of deepwater, oil sands and tight oil is forecast to reach 21 mb/d by 2040, which will represent 25% of the global crude oil production, which will boost the demand for offshore directional drilling in the future.

Based on Type Coverage, Rotary Steerable system segment is estimated to expand at fastest rate.

Growing need for remote sensing to reduce the drilling time, is accelerating the demand for rotary steerable systems. Conventional directional drilling services uses specialized BHA components, specific drill bits, mud motors, and other equipment to dig wellbore. Conventional directional drilling is gaining traction in the market as it is highly cost-effective and can efficiently drill low-angle wells with complex formations.

Service – Segment Analysis

Based on the service, the Measurement-While-Drilling (MWD) & Survey is projected to dominate the market over the coming years. This is mainly due to its ability to monitor wellbore and the real-time directional survey of downhole conditions.

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Based on Region, North American region is forecast to capture the largest market share.

North American directional drilling services market is driven by increasing oil exploration and production activities in the Gulf of Mexico, growing oil and gas discoveries, advancements in technology. U.S. has the highest number of shale gas reserves and the second-largest tight oil reserves. The increasing number of new offshore projects and the redevelopment of matured fields is boosting the regional market growth. North American region is projected to have 603 projects between 2021-2025. Furthermore, the rising activities for crude oil and gas production in Canada is further contributing to the regional market growth.

Top Market Players

Some of the leading players operating in the directional drilling services market are Baker Hughes Company, Halliburton Company, Schlumberger Limited, Weatherford, NOV Inc., GENERAL ELECTRIC, Nabors Industries Ltd., Cathedral Energy Services, Gyrodata, and Jindal Drilling & Industries Limited, among others.

Key Developments:

• • In September 2022, Saudi Aramco awarded directional drilling contract to National Energy Services Reunited Corporation (NESR), a major supplier of integrated energy services in the MENA region in Saudi Arabia. Scope of the agreement will include directional drilling, logging while drilling (LWD) services, measurement while drilling (MWD) and well engineering, for four years.
  • In September 2022, Abu Dhabi National Company (ADNOC), state-owned oil company of United Arab Emirates (UAE), awarded framework agreements worth USD 1.83 billion to Weatherford Bin Hamoodah Company LLC, Al Mansoori Directional Drilling Services, Schlumberger Middle East SA, Al Ghaith Oilfield Supplies and Services Company, and Halliburton Worldwide Limited Abu Dhabi, for directional drilling and logging-while-drilling (LWD) solutions, to expand oil production capacity in the country to 5 million B/D by 2030.
  • In August 2022, Baker Hughes, an oilfield supplier based out of United States, announced that it has received contract worth USD 510.13 million from Stato, for providing integrated drilling services for 25 oil fields in Norwegian continental shelf (NCS). As a part of the agreement, company is obliged to provide measurement-while-drilling, logging-while-drilling, 24*7 onshore support, mud logging, drilling engineering services, and directional drilling services during the project.
  • In October 2019, Schlumberger Limited, a major oilfield company based in France announced the launch of its steerable system for drilling horizontal wells. This steerable system will improve the overall horizontal well drilling performance with its high-dogleg capabilities.
  • In June 2019, Halliburton Company, an American multination company received contract from Kuwait Oil Company to integrate offshore drilling services for six high-performance exploration wells.

Segments covered in the Report:

The global directional drilling services market has been segmented on the basis of application, type, service, and regions. Based on application, the market is segmented into onshore applications and onshore applications. Based on type, the market is segmented into conventional and rotary steerable system. Based on service, the market is segmented into rotary steerable system, logging-while-drilling, measurement-while-drilling & survey, motors, and others. 

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Market Segmentation

Global Directional Drilling Services Market by Application

• • Onshore applications
  • Onshore Applications

Global Directional Drilling Services Market by Type

• • Conventional
  • Rotary Steerable System

Global Directional Drilling Services Market by Service

• • Rotary Steerable System (RSS)
  • Logging-While-Drilling (LWD)
  • Measurement-While-Drilling (MWD) & Survey
  • Motors (MUD Motors)
  • Others

Global Directional Drilling Services Market by Region

• • North America Directional Drilling Services Market (Option 1: As a part of the free 25% customization)

    • By Application
    • By Type
    • By Service
    • US Market All-Up
    • Canada Market All-Up

  • Europe Directional Drilling Services Market (Option 2: As a part of the free 25% customization)

    • By Application
    • By Type
    • By Service
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Directional Drilling Services Market (Option 3: As a part of the free 25% customization)

    • By Application
    • By Type
    • By Service
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Directional Drilling Services Market (Option 4: As a part of the free 25% customization)

    • By Application
    • By Type
    • By Service
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating in the Directional Drilling Services (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Baker Hughes Company
  • Halliburton Company
  • Schlumberger Limited
  • Weatherford
  • NOV Inc.
  • GENERAL ELECTRIC
  • Nabors Industries Ltd.
  • Cathedral Energy Services
  • Gyrodata
  • Jindal Drilling & Industries Limited