Underbalanced Drilling Services Market: Overview
Underbalanced drilling is a type of oil and gas well drilling where the pressure in the wellbore is kept lower than the fluid pressure in the formation being drilled. As the well is being drilled, formation fluid flows into the wellbore and up to the surface. The underbalanced drilling technique minimizes near-wellbore damage, increases well productivity, and reduces drilling problems such as differential sticking and low rates of penetration especially in mature fields and horizontal wells.
Underbalanced Drilling Services Market: Trends & Demands
Rising demand for oil and gas due to industrialization, urbanization, and population growth is driving the drilling market across the globe which ultimately increase the underbalanced drilling services market. Increase in exploration and new discovery of oil and gas deposits is fueling the growth of underbalanced drilling services market. Furthermore, increase in investments in the oil and gas sector by market vendors is also driving the underbalanced drilling services market. For instance, in April 2018, U.S. Oil & Gas Plc (USOIL) has started the new exploration drilling at the Hot Creek Valley project in Nevada. However, high cost of drilling and stringent government regulations regarding offshore drilling may hamper the growth of the underbalanced drilling services market.
Underbalanced Drilling Services Market: Key Segments
The global underbalanced drilling services market can be segmented based on application, and region. Based on application, the underbalanced drilling services market can be classified into onshore and offshore. The onshore dominates the application segment of the underbalanced drilling services market. Offshore segment is expected drilling methods to grow at a highest CAGR during the forecast period. Increasing exploration activities in ultra-deep and deep sea regions, particularly in Africa and Europe, that faced recent oil & gas discoveries in offshore are expected to contribute to the overall market growth over the forecast period.
Underbalanced Drilling Services Market: Regional Outlook
In terms of region, the global underbalanced drilling services market can be segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa. North America is dominated the global underbalanced drilling services market and trend remain same 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. According to General Electric Company’s Baker Hughes Inc., the U.S. oil rig count increased by approximate 42% in 2017 as compared to that in 2016 owing to the recovery in crude oil prices.
Latin America is expected to hold a significant share of the global underbalanced drilling services market during the forecast period due to discoveries of substantial shale and oil reserves in the Amazon basin and Venezuela. Venezuela, Brazil, and Mexico are lucrative countries for the market in this region. The underbalanced drilling services market in Mexico is expected to expand at a considerable pace due to development of a large number of oil wells in the Gulf of Mexico. The Middle East & Africa region is a major producer of oil in the world. Offshore developments and discoveries particularly in the Red Sea region by countries including Qatar, UAE, and Saudi Arabia is anticipated to drive the Middle East underbalanced drilling services market.
Underbalanced Drilling Services Market: Key Players
Major companies operating in the global underbalanced drilling services market include Reform Energy Services, STRATA Energy Services, Weatherford International, Precision Air Drilling Services, Middle East Air Drilling Services (ME-ADS), Air Drilling Associates, Inc., Hilong Oil Service & Engineering Co., Ltd., Blade Energy Partners, and Viking Services.
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