COVID-19 Impact on Oil and Gas Magnetic Ranging Market
- The COVID-19 outbreak has hindered the demand for oil and gas magnetic ranging process. Governments of various countries across the globe enforced lockdown measures to curb the spread of the coronavirus. This resulted in a slowdown and even a halt in key service, thus hampering the demand for oil and gas magnetic ranging services.
- Key players operating in the oil and gas magnetic ranging market are well known service provider and suppliers. Manufacture and supply chain facilities of these players are spread across various countries in Asia Pacific, Europe, North America, Latin America, and Middle East & Africa. Many of these players halted their production output over the last few months due to the COVID-19 pandemic. The pandemic has negatively impacted the demand and supply chain of these services. It also adversely impacted the oil & gas industry.
- The industrial shutdown caused by the COVID 19 pandemic has created disruption in the supply chain. Disruption in the supply of raw materials is projected to hamper the full-scale operations of companies operating in the market.
Key Drivers of Oil and Gas Magnetic Ranging Market
- High oil prices across the globe are expected to boost the market during the forecast period. There has been a rise in the need for oil and gas magnetic ranging with the increase in demand for higher efficiency and productivity of the oil extraction process.
- Expansion of the oil & gas industry has increased the demand for energy across the world. Over the years, oil and gas has been widely utilized in transportation, manufacturing goods, power generation, and other end-use industries. Rise in need for unconventional fuel such as tight gas and shale gas due to the growing globalization, urbanization, and economic developments is anticipated to boost the oil and gas magnetic ranging market.
- Depletion of oil is compelling the oil and gas industry to shift toward other options such as heavy oil and bitumen. The production of heavy hydrocarbons requires assisted drainage. This is also driving the need for magnetic ranging.
North America to Constitute Significant Share of Global Oil and Gas Magnetic Ranging Market
- In terms of region, the global oil and gas magnetic ranging market can be split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- Asia Pacific accounts for major share of heavy oil production. With upcoming deep-water projects, horizontal drilling, and increase in number of coalbed methane (CBM) projects, the oil and gas magnetic ranging market in the region is expected to expand significantly in the near future.
- North America, with its vast reserves of recoverable shale gas and tight oil reserves in the world, dominates the oil and gas magnetic ranging market. This trend is expected to continue during the forecast period.
Competitive Landscape of Global Oil and Gas Magnetic Ranging Market
- The oil and gas magnetic ranging market is moderately fragmented with the presence of large numbers of players operating at local, regional, and international levels
- The usage of magnetic ranging is likely to increase, with rise in horizontal drilling, directional drilling, and injector wells. This is likely to create significant opportunities in the market.
- Key players in the market are implementing numerous strategies to consolidate their position. Focus on new technology and maintenance contracts is one of the preferred strategies adopted by companies operating in the market.
Key Players Operating in Global Oil and Gas Magnetic Ranging Market
- Bartington Instruments Limited.
- Baker Hughes
- Scientific Drilling International
- Vector Magnetics LLC
- GMW Associates.
- Weatherford International
- Big Guns Energy Services Inc.
- Transocean Ltd
Global Oil and Gas Magnetic Ranging Market, by Technology
- Rotating Magnet Ranging (RMR)
- Active Magnetic Ranging (AMR)
- Passive Magnetic Ranging (PMR)
Global Oil and Gas Magnetic Ranging Market, by Application
Global Oil and Gas Magnetic Ranging Market, by Region
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Arabic
- South Africa
- Rest of Middle East & Africa
Oil and Gas Magnetic Ranging Market: Introduction
- Magnetic ranging is used to determine the relative position of one well with respect to another using magnetic measurements. Magnetic ranging is used for several oil field applications including positioning of blow-out relief wells, steam-assisted gravity drainage, heavy oil applications, and planned intersection of one well with another.
- The magnetic ranging system controls the downhole drilling process. It uses a combination of magnetic sources and magnetic sensors to position boreholes accurately and comprises of drilling tool. The drilling tool has a tool axis and magnetic field source in the form of an electromagnet which generates a magnetic field which is substantially parallel to the tool axis.