Downhole Tools Market to Set Phenomenal Growth by 2027
Downhole Tools Market: Introduction
The global downhole tools market was valued at ~US$ 7.8 in 2018 and is anticipated to expand at a CAGR of ~2% during the forecast period. Among types, the drilling tools segment accounted for a dominant share of the global downhole tools market in 2018. This can be primarily ascribed to increase in drilling activities worldwide. For instance, the number of wells drilled worldwide increased to 70,551 in 2018, which is a substantial increase from 65,746 wells drilled in 2017. This is likely to propel the drilling tools segment of the global market for downhole tools during the forecast period. Among applications, the well drilling segment held a significant share of the global downhole tools market in 2018, while the well completion & production segment accounted for a considerable market share in 2018. The downhole tools market in North America is estimated to expand at a substantial pace during the forecast period, owing to significant increase in drilling activities as well as well completion and production activities and increase in urbanization in the region.
Key Drivers of Downhole Tools Market
Rise in the production of unconventional oil and gas is projected to drive the global downhole tools market during the forecast period. 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. Modern downhole tools are required to extract unconventional oil and gases, due to lack of natural pressure to lift the fuel. Thus, rise in the production of unconventional oil and gases is anticipated to boost the global downhole tools market during the forecast period.
The growth in the discovery of oil and gas fields/wells/blocks is anticipated to drive the global downhole tools market during the forecast period. Spending on oil and gas exploration rose by 20% in 2018. About 140 discoveries were made in the year itself. Moreover, the total estimate for discovered resources stood at around 9 billion barrels of oil equivalent in 2018. Among these, offshore oil discoveries were prominent with 60% share, while gas resources accounted for about 40% share. These discoveries are expected to boost the development of oil and gas wells in the near future. Thus, with increase in the discovery of oil and gas fields/wells/blocks, the global downhole tools market is anticipated to expand significantly during the forecast period.
North America Offers Lucrative Opportunities to Downhole Tools Market
North America led the global downhole tools market in 2018, owing to increase in drilling activities for new oil and gas wells in the region. Furthermore, rising demand for crude oil and gas led by increase in urbanization is likely to propel the market for downhole tools in North America during the forecast period.
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Major Developments in Downhole Tools Market
In November 2019, Coretrax, a specialist well construction and intervention company, announced the acquisition of Churchill Drilling Tools as part of its expansion strategy. Scientists at SINTEF Petroleum Research, one of the largest independent research organizations in Europe, have developed an innovative oil drilling tool with specific characteristics. This tool can extract oil from small oil-filled pockets that lie close to large fields on the continental shelf. 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.
Competition Landscape of Global Downhole Tools Market
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 market in 2018. Key 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., Ulterra, Cougar Drilling Solutions, and Toro Downhole Tools.
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