Drill Bit Market - Segmented by Type, and Geography - Growth, Trends, and Forecast (2018 - 2023)
Drill Bit Market Growth
The drill bit market follows drilling activity across the globe. The drilling activity in 2017 improved with an increase of around 27% in quarterly active rig count compared to 2016. In 2018, the drilling activity is at its peak in the past three years supported by increasing crude oil price, which has already touched USD 70 per barrel market in April 2018. The United Kingdom Continental Shelf witnessed the end of the sharp reduction in investment; end of underinvestment in Brazil and Argentina with strong government support and robust drilling activity in North America is expected to help in the growth of drill bit market.
Roller Cone Bits accounts for the largest share among Types
In conventional oil & gas fields roller cone bits are used and hence accounted for the largest market share. However, with increasing exploitation of unconventional reserve such as shale in the United States, the demand for fixed cutter bits with higher efficiency has gained a lot of momentum as it offers higher durability and rate of penetration in shale reserve. Countries, such as Canada, Argentina, and China are expected to witness significant increase in drilling activity in their shale reserve and hence, increase the demand for fixed cone. Drill bit design has changed a lot in the past five years. Manufacturers are adding multidimensional cutter technologies, smaller moving parts to the fixed diamond cutters and other changes to make the drill bit smarter.
Recovery in South America’s Oil & Gas Industry is supporting the Market
Brazil and Argentina are important countries in South America’s oil & gas industry and accounts for 47% of rig count in the region. The new government in both the countries has made the oil & gas business more attractive, and the disinvestment scenario has come to an end. The Argentine government is planning to eliminate natural gas subsidies by 2022 and increase the prices for upstream producers, to attract sufficient investment in production. In Brazil, the new government has ended the monopoly of Petrobras over the countries prolific hydrocarbon resources and has opened the hydrocarbon reserves to foreign companies. The country is aiming for additional oil production capacity of around 2 MMb/d by 2027. The positive outlook for oil & gas industry in South America is expected to support the market.
United States is one of the Largest Markets for Drill Bit
The United States accounts for around 40% of the global drilling market and hence one of the largest markets for drill bit. The active rig count in the country has increased by 9% in the first four months of 2018. The decline in the breakeven price has been the major driver for the robust drilling activity in the country. Onshore drilling dominates the market in the country while offshore market has not witness much activity in the past few years. The offshore sector in the country is expected to pick up as the government has opened around 98% its coastal water for drilling in January 2018, which was earlier not allowed.
Major Players in Drill Bit Market
National-Oilwell Varco, Inc.
Baker Hughes A GE Co.
Weatherford International plc
Landrill Oil Tools Co., Ltd.
Reasons to Purchase Drill Bit Market Report
Current and future drill bit market outlook in the developed and emerging markets
Analyzing various perspectives of the market with the help of Porter’s five forces analysis
The segment that is expected to dominate the market
Regions that are expected to witness fastest growth during the forecast period
Identifying the latest developments, and strategies employed by the major market players
3-month analyst support, along with the Market Estimate sheet (in excel)
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