Global Downhole Drilling Tools Market 2017-2021
About Downhole Drilling Tools
Drilling involves boring a hole in the earth's surface for the extraction of petroleum and gas. Downhole drilling tools facilitate the drilling process and enable drillers to counter the challenges associated with drilling such as extreme depth, high-temperature, and pressure difference. These tools guide or steer wells through a small reservoir by changing the trajectory of the well. The process of extracting these valuable resources includes drilling through the surface till the depths where the resources occur are reached. There are many activities involved in the extraction of these reserves.
Technavio’s analysts forecast the global downhole drilling tools market to grow at a CAGR of 4.40% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global downhole drilling tools market for 2017-2021. To calculate the market size, the report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Downhole Drilling Tools Market 2017-2021
Technavio recognizes the following companies as the key players in the global downhole drilling tools market: Baker Hughes, Halliburton, National Oilwell Varco, Schlumberger, and Weatherford.
Other Prominent Vendors in the market are: American Oilfield Tools, Bilco Tools, Challenger Downhole Tools, Downhole Oil Tools, Logan International, Magnum Oil Tools, Oil Tools International Services, Schoeller-Bleckmann Oilfield Equipment, Tasman, Wenzel Downhole Tools, Western Drilling Tools, Carlisle Interconnect Technologies, Cougar Drilling Solutions, Stabiltec Downhole Tools, Olympus, Gearcon Drilling Tools, and Kennametal.
Commenting on the report, an analyst from Technavio’s team said: “One trend in market is supercritical carbon dioxide as a fracking fluid in shale gas fracking. Hydraulic fracturing is a process where large amounts of water, sand, and chemicals are injected into a well to break apart the rock and release the gas. Hydraulic fracturing, also known as ‘fracking’ uses water and chemicals to open the pores of the rock formation, which allows the oil and gas to flow to the well. Fracking is widely used and helps to increase productivity from the well.”
According to the report, one driver in market is shifting focus toward ultradeep offshore wells. The era of easy oil is over. Oil and gas companies worldwide are looking for new explorations for the extraction of crude oil and natural gas. Drilling in offshore locations is more challenging than drilling onshore due to harsh weather conditions. Oil and gas companies have been very successful in onshore locations for over a century now. Offshore locations have been popular sources of oil and gas for nearly the same time as onshore drilling. The world has mastered the art of shallow water drilling as well as deep water drilling of oil and gas resources. The focus has now shifted toward the exploration of ultradeep offshore resources, which are found at depths of 1,500 meters and deeper. Drilling at such depths is challenging and requires enhanced drilling tools. This has created an opportunity for drilling tools manufacturers to supply specialized products, which are specifically designed for offshore drilling activities.
Further, the report states that one challenges in market is decline in investments in upstream sector. As per the World Energy Investment report, 2016, published by the International Energy Agency (IEA), the upstream oil and gas industry witnessed a 25% decline in investments in 2015 from 2014. This was due to the cost reductions by various upstream companies worldwide, caused by the drop in crude oil prices. Crude oil prices, which hovered over $110/bbl. in June 2014, experienced a rapid decline to $50/bbl. in January 2015, a time span of just seven months. Crude oil prices continued to fall and touched a ten-year low of $28/bbl. in January 2016 and were around $48/bbl. in January 2017. This has greatly affected the profitability of the upstream companies.
Baker Hughes, Halliburton, National Oilwell Varco, Schlumberger, Weatherford, American Oilfield Tools, Bilco Tools, Challenger Downhole Tools, Downhole Oil Tools, Logan International, Magnum Oil Tools, Oil Tools International Services, Schoeller-Bleckmann Oilfield Equipment, Tasman, Wenzel Downhole Tools, Western Drilling Tools, Carlisle Interconnect Technologies, Cougar Drilling Solutions, Stabiltec Downhole Tools, Olympus, Gearcon Drilling Tools, and Kennametal.