Downhole Tools Market
Downhole Tools Market (Type: Drilling Tools, Completion Tools, Impurity Control Tools, and Logging Tools; and Application: Well Drilling, Well Intervention, Well Completion & Production, and Formation & Evaluation) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2019 - 2027
Press Release :
Companies Aim to Minimize Drilling Vibration, Developing Dynamic Drilling Models
Drilling technologies have evolved at a steady pace over the past couple of decades. One of the key areas within the drilling space that has been at the forefront as far as technological advancements are considered is directional control. Downhole tools are increasingly being used in the oil & gas sector wherein drilling of horizontal wells is imperative. At present, conventional drilling pipes are expected to gradually incorporate rotary motors that are likely to streamline modern-day drilling operations. In recent years, downhole mud rotators have emerged as an ideal alternative to apply torque to the drill bit wherein positive displacement rotors are used. Companies operating in the current downhole tools market are highly focused on developing tools that offer the most appropriate drilling solutions, cost-effective, and compliment the other aspects of drilling systems.
Downhole tools are integral to drilling systems that are deployed to extract, probe, and perform subsurface applications. Apart from offering cost-effective downhole tools, participants of the downhole tools market are also expected to improve the durability of their products. Research and development activities are projected to predominantly focus on enhancing drilling diagnostics, development of improved drill bits, wellbore integrity, etc. In addition, operators in the current market landscape are continually seeking new ways to minimize drilling vibrations, develop dynamic developing models, and downhole telemetry. A surge in demand for downhole tools is expected during the forecast period, as technologies, production, and manufacturing operations continue to be in-sync with applications of the modern-day oil & gas sector. At the back of these factors, the global downhole tools market is expected to reach a value of ~US$ 8.5 Bn by the end of 2027.
Request a sample to get extensive insights into the Downhole Tools Market
Consistent Development in Directional Drilling Technologies to Augment Demand
Drilling technologies within the oil & gas sector are continually evolving at a steady rate. Over the past few decades, the demand for downhole tools for applications in oilfields has witnessed consistent growth– a trend that is expected to continue during the assessment period. Applications of downhole tools range from single good drilling or drilling across multiple locations that are inaccessible. Notable progress in computer technology is playing a key role in the development of directional drilling and downhole tools. At present, engineers and geoscientists are leveraging the advancements in technologies, including 3D visualization and 3D earth models. These technological advancements enable companies operating in the oil & gas sector to optimize, visualize, and construct well paths via reservoir target.
To understand how our report can bring difference to your business strategy, Ask for a brochure
The advent of automated solutions is expected to drive the growth of the downhole tools market in the coming years. Automation continues to make its mark in the current downhole tools market landscape and is expected to address the existing challenge of tracking a prescribed well path efficiently. Companies in the current market for downhole tools are focusing on enhancing the guiding prowess of bit tools in tune with the required rate of penetration (ROP). While companies continue to minimize production and development costs, the accuracy and quality of good placement will remain critical.
Uptake of Logging While Drilling Technology on Rise
Over the past decade, the demand for logging while drilling technology has moved in the upward trajectory particularly to overcome the hurdles put forth by directional drilling technology. One of the key factors that is expected to propel the demand for logging while drilling technology is its ability to offer drillers and engineers real-time insights due to which, prompt and efficient decisions can be undertaken to improve direction drilling. Logging while drilling is also known as ‘intelligent drilling’ and is likely to revolutionize well logging across offshore and onshore wells worldwide. While downhole drilling tools and completion tools are expected to have a higher adoption rate, the demand for logging tools is expected to see steady growth in the coming years. Innovations and technological advancements within the directional drilling space are projected to accelerate the development of accurate, smooth, and cost-effective downhole tools during the assessment period– another factor that is anticipated to propel the growth of the downhole tools market.
Stuck in a neck-to-neck competition with other brands? Request a custom report on Downhole Tools Market
The global downhole tools market is expected to grow at a CAGR of ~2% during the forecast period. Technological advancements, innovations, a significant rise in mining activities across the world, and the advent of advanced computer technologies are some of the major factors that are likely to boost the prospects of the downhole tools market in the coming years. The demand for downhole tools is anticipated to witness considerable growth for an array of applications, including well intervention, well drilling, and well completion & production. Despite a surge in demand for logging tools, downhole drilling and completion tools will have a higher adoption rate during the forecast period.
Downhole Tools: Overview
- The term ‘downhole tools’ refers to oilfield equipment used during well drilling, completion, and intervention or well workover operations. Downhole tools help in optimizing the production of oil and gas from a well and maintaining continuous flow of fluid from a reservoir.
- Various types of downhole tools such as roller centralizers, drilling jars, shock tools, tubular tools, fishing tools, and drill pipes are used for operation of upstream activities in the oil & gas industry
- In the oil & gas industry, downhole tools are primarily employed for well drilling and exploration. However, they are also used for optimizing the production from wells and for well fishing services.
- A bottom hole assembly (BHA) is a key component of a drilling system, which consists of various downhole tools and components including drill bits. These components are used for operations at the bottom of the wellbore and physically drill the rock.
Rise in Unconventional Oil and Gas Production to Drive Downhole Tools Market
- Unconventional oil and gas production has been an important breakthrough for the global oil industry. Unconventional gases include shale gas, tight gas, gas hydrates, and coalbed methane gas.
- According to the World Energy Council, the U.S. has 1,161 trillion cubic feet of technically recoverable unconventional gases, whereas China has 1,115 trillion cubic feet of unconventional gases. Moreover, the U.S. was the leading country in terms of production of unconventional gases in the year 2018. The annual production of unconventional gases in the country stood at 22 trillion cubic feet in 2018. China’s production of unconventional gases stood at 10 trillion cubic feet in the same year.
- Over the last few years, companies across the world have been investing significantly in research and development activities to come up with economical methods for extraction of unconventional fuels. Hence, the production of unconventional fuels is expected to rise in the near future.
- Modern downhole tools are required to extract unconventional oil and gases, due to lack of natural pressure to lift the fuel. Hence, rise in the production of unconventional oil and gas is anticipated to boost the global downhole tools market during the forecast period.
Volatile Crude Oil Prices to Hamper Downhole Tools Market
- Prices of crude oil are affected by events that can potentially disrupt the supply of oil and gas. These include geopolitical and weather-related issues. Geopolitical events is a major factor that can create uncertainty about supply of or demand for oil and gas. This can lead to increase in volatility in prices of oil and gas.
- The Middle East accounts for a major share of the global oil & gas industry. It is a highly unstable sub-region, due to political issues. This leads to uncertainty among investors planning to invest in oil and gas production. Prices of oil and gas have witnessed steady rise since the decrease in prices of crude oil in 2014.
- Volatility in prices of crude oil affects the production of oil and gas. This, in turn, is projected to restrain the global downhole tools market from 2019 to 2027.
Emergence of Innovative and Effective Downhole Components Worldwide to Provide Opportunities to Downhole Tools Market
- Consistent development of downhole tools has encouraged companies to manufacture innovative and effective components so as to offer benefits to oil and gas producers such as cost cutting and efficient production processes
- Due to the requirement for innovative tools, major players operating in the global oilfield service industry are carrying out a transformation in the management for design, maintenance, and repair of downhole tools. Major players are trying to adopt a cutting-edge innovation technology so as to reach hotter and harder reservoirs and meet the ever-increasing global demand for energy.
- Wells with extremely high temperatures pose several challenges for downhole tool components. Tools such as sensors and other control equipment used for directional inclination and gamma-ray measurement; elastomers; and seals used on downhole connections are subjected to high varying temperatures. This calls for effective and reliable downhole tools to ensure that components perform properly at varying pressures and temperatures while enabling functioning of equipment, such as turbines and alternators, which power logging while drilling (LWD) tools.
- Over the past few years, Schlumberger has made high investments in the development of electronic components that can withstand high downhole temperatures. Schlumberger has developed a proprietary ceramic electronics technology that can operate at a temperature of 200°C (400°F) with the life expectancy that exceeds operational requirements of the company.
- Thus, increase in the adoption of cutting-edge technologies to develop innovative and effective downhole tools is expected to provide new opportunities to the global downhole tools market during the forecast period
Recent Developments, Expansions, Acquisitions, and New Contracts in Downhole Tools Market
- In November 2019, Coretrax, a specialist well construction and intervention company, announced to have acquired Churchill Drilling Tools as part of its expansion strategy. Churchill Drilling Tools is a global provider of high quality and innovative drilling tools, with its operational bases in Aberdeen (the U.K.), Houston (the U.S.), and Dubai (the UAE). The company’s extensive product range covers drilling, completion, and plugging and abandonment (P&A) operations.
- On October 15, 2018, Nine Energy Service Inc. announced the acquisition of Magnum Oil Tools International Ltd. for US$ 493 Mn to strengthen its completion tools business. Magnum Oil is a downhole technology provider and it has served the global oil & gas industry over a decade. It is headquartered in Corpus Christi, Texas (the U.S.). The company offers proprietary downhole completion products, including dissolvable and composite frack plugs, and other patented consumables.
North America to be Highly Lucrative Region of Global Downhole Tools Market
- North America is anticipated to be a highly attractive region of the global downhole tools market during the forecast period. The market in North America is estimated to expand at a significant pace between 2019 and 2027, owing to increase in the number of new oil and gas well drilling activities in the region. Furthermore, demand for crude oil and gas led by increase in urbanization is likely to propel the market in the region during the forecast period.
- Asia Pacific held a considerable share of the global downhole tools market in 2018. China and India are key countries of the market in the region. China accounted for a major share of the downhole tools market in Asia Pacific in 2018, owing to increase in oil and gas drilling activities in the country.
Downhole Tools Market is Highly Competitive
- The global downhole tools market is highly fragmented. Various large-sized, international players as well as local players held a significant share of the global downhole tools market in 2018.
- Major players operating in the global downhole tools market are
- Halliburton Company
- Excalibre Downhole Tools Ltd.
- Schlumberger Ltd.
- Bilco Tools Inc.
- Baker Hughes Inc.
- Wenzel Downhole Tools Ltd.
- Oil States International Inc.
- National Oil Varco Inc.
- Weatherford International Ltd.
- Vertex Downhole
- United Drilling Tools Ltd.
- Cougar Drilling Solutions
- Toro Downhole Tools
Downhole Tools Market - Scope of the Report
A latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global downhole tools market in order to accurately gauge its growth potential. The study presents detailed information about important drivers, restraints, and key trends that are creating a landscape for growth of the global downhole tools market in order to identify opportunities for market stakeholders. The report also provides insightful information about how the global downhole tools market would expand during the forecast period i.e. 2019–2027.
The report offers intricate dynamics about different aspects of the global downhole tools market, which aids companies operating in the market in making strategic decisions. TMR’s study also elaborates on significant changes that are anticipated to configure growth of the global downhole tools market during the forecast period. It also includes key indicator assessment that highlights growth prospects for the global downhole tools market and estimates statistics related to the market, in terms of value (US$ Mn).
This study covers detailed segmentation of the global downhole tools market, along with key information and a competition outlook. The report mentions company profiles of players that are currently dominating the global downhole tools market, wherein various developments, expansions, and winning strategies practiced by these players have been presented in detail.
Key Questions Answered in TMR’s Report on Downhole Tools Market
The report provides detailed information about the global downhole tools market on the basis of comprehensive research on various factors that are playing a key role in accelerating growth of the global market. Information mentioned in the report answers path-breaking questions for companies that are currently operating in the global market and are looking for innovative methods to create a unique benchmark in the market so as to help them design successful strategies and make target-driven decisions.
- Which type segment of the global downhole tools market would emerge as a revenue generator for the market during the forecast period?
- How are key market players successfully earning revenues in the global downhole tools market?
- What would be the Y-o-Y growth trend of the global downhole tools market between 2019 and 2027?
- What are the winning imperatives of leading players operating in the global downhole tools market?
Research Methodology – Downhole Tools Market
The research methodology adopted by analysts for compiling the report on the global downhole tools market is based on detailed primary as well as secondary research. With the help of in-depth insights of the market-affiliated information obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts of the global downhole tools market.
During the primary research phase, analysts have interviewed market stakeholders, investors, brand managers, vice presidents, and sales & marketing managers. On the basis of the data obtained through interviews of genuine resources, analysts have emphasized the changing scenario of the global downhole tools market.
For secondary research, analysts have scrutinized numerous annual report publications, white papers, market association publications, and company websites to obtain the necessary understanding of the global downhole tools market.
Downhole Tools Market – Segmentation
TMR’s research study assesses the global downhole tools market based on type and application. The report presents extensive market dynamics and progressive trends associated with different segments and how they are influencing growth prospects for the global downhole tools market.
Impurity Control Tools
Well Completion & Production
Formation & Evaluation
Middle East & Africa