Directional drilling is a process used in hydrocarbon exploration & production to drill wells deviating from the vertical trajectory in order to reach reservoirs located in remote or inaccessible locations. Modern directional drilling can drill lateral, multiple lateral, or horizontal legs from a vertical or a slanted well path. The drill bit is steered with a downhole motor and drilling assembly referred to as the bottomhole assembly. Directional drilling services provide the assembly and technology to accurately drill and place wellbore inside reservoir targets.

The global directional drilling services market is estimated to be valued at US$ 9.58 Bn in 2024 and is expected to exhibit a CAGR of 9.2% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Increased shale gas exploration activities is one of the major drivers propelling the growth of global directional drilling services market over the forecast period. Shale gas refers to natural gas trapped within shale formations. Directional drilling technology is extensively used for tapping shale gas reserves as they are generally located in difficult to access areas underneath dense rock formations. For instance, according to the U.S. Energy Information Agency, shale gas production has increased sharply over the past decade in the U.S. due to advancements in horizontal drilling and hydraulic fracturing technologies. Between 2000 to 2017, shale gas production in the U.S. increased from 0 trillion cubic feet (tcf) to 28.2 tcf.

SWOT

Strength: Directional drilling services provide precise borehole placement and wellbore trajectory control which increases productivity and reduces drilling costs. It also helps maximize reservoir contact and drainage. It minimizes environmental footprint as fewer surface locations are required.

Weakness: Directional drilling involves complex operations and requires specialized equipment and highly skilled labor which increases costs. Uncertainties in geology and unsuccessful drilling attempts can lead to time delays and cost overruns.

Opportunity: Increasing global energy demand and rising crude oil prices are driving greater investment in offshore and unconventional onshore reserves which boosts demand for directional drilling. Technological advancements in MWD/LWD and geo-steering capabilities are improving efficiency.

Threats: Volatility in crude oil prices hampers E&P spending and thus drilling activity. Rising adoption of renewable energy threatens long term demand prospects for oil and gas. Stringent safety and environmental regulations increase compliance costs.

Key Takeaways

The Global Directional Drilling Services Market Size  is expected to witness high growth over the forecast period from 2024 to 2031 supported by rising global energy demand and focus on unconventional reserves development. The market size is forecast to reach US$ 9.58 Bn by 2024.

Regional analysis North America currently dominates the market led by the massive shale reserves in the US. However, the Asia Pacific region is expected to exhibit the fastest growth amid rising oil and gas demand from China and India coupled with increasing exploration and production activity.

Key players operating in the directional drilling services market are B. Braun Melsungen AG, Fresenius Kabi, Leventon, S.A.U, Ambu A/S, Baxter International Inc., Halyard Health, and Nipro Corporation. These companies are focusing on technological advancements to improve efficiency of directional drilling operations.

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