PDC Drill Bits Market: Introduction
- Drill bits are essential tools for any drilling operation in the oil and gas industry. It is used to drill cylindrical boreholes for the production of crude oil and gas.
- Polycrystalline diamond compact or PDC drill bits, are largely used in oil & gas industry. If the formation is sticky or too hard, then only other types of bits are used.
- Advancement in PDC drill bits have increased their penetration in oil & gas wells. PDC drill bits are costlier than roller cone bits; however, they substantially reduce the total drilling cost, as these provide higher rotary speed, which enable better drill rates and reduce the chances of deviation.
Key Drivers of PDC Drill Bits Market:
- Rise in demand for oil and gas in emerging economies due to industrialization, urbanization, and population growth is driving the global drilling industry. This is projected to boost the PDC drill bits market.
- Increase in exploration and new discovery of oil and gas deposits are fueling the market. In January 2019, BP announced a discovery of more than 1 billion barrels of oil in its Thunder Horse field in the Gulf of Mexico. These discoveries are likely to spark long-term drilling and exploration operations over the coming years, leading to a steady rise in the demand from the global PDC drill bits market over the forecast period.
- Furthermore, increase in demand for speedy drilling with minimum wear and tear in terms of hard and medium-hard formations is driving the global PDC drill bits market.
- Rise in investments in the oil & gas sector is also boosting the market. For instance, in April 2018, U.S. Oil & Gas Plc (USOIL) started a new exploration drilling at the Hot Creek Valley project in Nevada in the U.S.
High cost of drilling to Hamper Market:
- High cost of drilling and stringent government regulations on offshore drilling are major factors that may hamper the growth of the market
Matrix Body Type Segment and Offshore Application Segment to Offer Attractive Opportunities:
- The global PDC drill bits market can be segmented in terms of type, size of PDC cutter, application, and region.
- Based on type, the market can be bifurcated into matrix body and steel body. The matrix body segment accounted for a dominant share of the PDC drill bits market in 2018. The matrix body can withstand an impact load and is capable of drilling medium-hard to hard formations.
- In terms of size of PDC cutter, the market can be divided into less than 9 mm, 9 mm to 24 mm, and above 24 mm. The 9 mm to 24 mm segment accounts for a large share of the market. The segment is estimated to expand at a substantial pace during the forecast period.
- In terms of application, the market can be categorized into onshore and offshore. The onshore segment constitutes a large share of the market, while the offshore segment is estimated to expand at a substantial pace during the forecast period.
North America expected to hold Lion’s Share in the Global PDC Drill Bits Market:
- Based on region, the global PDC drill bits market can be classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa.
- North America dominated the global market in 2018. This trend is estimated to continue during the forecast period owing to the discovery of shale reserves in the U.S. and presence of a large number of private oil companies in the region.
- According to General Electric Company’s Baker Hughes Inc., the oil rig count in the U.S. increased by approximate 42% in 2017 as compared to that in 2016 owing to the recovery in crude oil prices.
- Middle East & Africa is a major producer of oil in the world. Increase in offshore developments and discoveries, especially in the Red Sea, by countries such as Qatar, the UAE, and Saudi Arabia, is anticipated to drive the PDC drill bits market in the Middle East.
Key Players Operating in the PDC Drill Bits Market:
- Demand within PDC drill bits market is highly concentrated with top manufacturers accounting approximately 45-50% of the market. Few of the key players operating in the PDC drill bits market include
- Halliburton Inc.
- Schlumberger Limited
- National-Oilwell Varco, Inc.
- Sandvik AB
- Rockpecker Limited
- Baker Hughes a GE Company
- Weatherford International plc
- Landrill Oil Tools Co., Ltd
- Varel International Energy Services, Inc.
- Ulterra Drilling Technologies, L.P.
Global PDC Drill Bits Market: Research Scope
Global PDC Drill Bits Market, by Type
Global PDC Drill Bits Market, by Size of PDC Cutter
- Less than 9 mm
- 9 mm to 24 mm
- Above 24 mm
Global PDC Drill Bits Market, by Application