New York, July 25, 2023 (GLOBE NEWSWIRE) -- The global drilling rigs market size is slated to expand at ~6% CAGR between 2023 and 2035. The market is poised to garner a revenue of USD 70 billion by the end of 2035, up from a revenue of ~USD 55 billion in the year 2022. This growth of the market is set to be influenced by a surge in demand for energy. 580 million terajoules of energy are consumed worldwide each year, based on estimates. This corresponds to 13865 million tonnes of oil or 580 million trillion joules. In fossil fuel power plants, coal or oil is ignited to produce heat, which is then converted to steam to power turbines that produce electricity. Hence, the demand for drilling rigs is growing in order to extract oil.
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Moreover, with this demand for energy, the need for exploration is also growing. Drilling rigs are not only helpful in extracting oil but also in exploring the reserves. For instance, by the end of 2021, the proven reserves of U.S. crude oil and lease condensate had increased by 6.2 billion barrels (16%), from 38.2 billion to 44.4 billion barrels. Additionally, drilling rigs are employed in construction projects, especially when massive structures and foundations are involved. To give the construction a solid foundation, these rigs are utilized to drill far into the earth. Different drilling rigs, such as percussion drills, rotary drills, and auger drills, may be employed, depending on the soil and rock conditions.
Drilling Rigs Market: Key Takeaways
- Market in North America region to propel the highest growth
- The Jack up rigs segment to garner the highest growth
- Market in Asia Pacific market to grow at a significant rate
Growing Demand for Water in Rural Areas to Boost the Growth of the Global Drilling Rigs Market
Rural regions usually have lower availability of clean water. According to the most recent report from WHO and UNICEF, billions of people would not be able to obtain securely regulated household drinking water, sanitation, and hygiene services by 2030 unless the rate of advancement quadruples. Hence, in remote or rural locations with little access to clean water, drilling rigs are also employed to drill water wells. To reach aquifers beneath the ground and additional sources of groundwater, these rigs are built to drill a long hole into the earth. A pump is put in place after a well is dug to pump the water to the surface. Additionally, drilling rigs are employed for environmental study and monitoring, particularly in regions that can be contaminated. These rigs are used to extract ground samples known as core samples, which are analyzed to ascertain the presence and level of contamination. In order to make sure that the pollution is not spreading, the core samples can also be utilized to monitor the groundwater and soil conditions.
Drilling Rigs Market: Regional Overview
The global drilling rigs market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa region.
Growing Offshore Drilling Activities to Boost the Growth of the Market in North America
The drilling rigs market in North America is anticipated to grow at the highest share of 35% over the forecast period. This growth could be influenced by growing offshore drilling. A 14% increase in offshore drilling in North America was forecast by the World Oil Study of international petroleum ministries and Agencies for 2022. While digital technologies such as advanced data analytics, artificial intelligence/machine learning, and remote operations continue to lag behind shale-driven fracturing/stimulation and horizontal drilling technologies in terms of their impact on 2023 spending plans. Analysts anticipate these technologies to become more significant in the years to come. Therefore, this factor is also estimated to drive the growth of the market in this region.
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Rise in Mining Activities to Influence the Growth of Market in Asia Pacific Region
The Asia Pacific market for drilling rigs is set to grow at a highest share of 28% by the end of 2035. The major factor boosting the growth of the market in this region is rising mining activities. The metals and mining sector in Asia-Pacific experienced an increase in deal activity of about 22% in June 2022. Mineral exploration also makes use of drilling rigs, particularly in the mining sector. The grade and quantity of mineral deposits are ascertained through analysis of drill core samples taken from the ground using these rigs. Depending on the location and accessibility of the deposit, mineral exploration drilling may be done underground or on the surface.
Drilling Rigs, Segmentation by Type
- Drill Ships
- Jack Up Rigs
The jack up rigs segment is set to have the largest share of 60% over the forecast period. This growth of the segment could be attributed to growing offshore drilling. In 2022, jack-up and floating offshore rig activity was active in several significant global locations. Utilization of globally marketed jack-ups increased from about 86% in January to approximately 90% in December. Drilling platforms that can be raised while moving from one site to another are known as "jacked-up rigs." They have three or four adjustable legs and float. Oil from deep-sea sources is frequently extracted using jack-up rigs.
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Drilling Rigs, Segmentation by Depth
- Shallow
- Deep Water
The deep water segment is poised to have the highest share of 55% by the end of 2035. Deepwater reserves are more prevalent globally, which will accelerate segment expansion. In order to avoid any environmental or security risks, these wells need to be constantly maintained and repaired by a drilling rig. Around 100 billion barrels, or around 10% of total reserves, are contained in deep-water deposits worldwide. 3,400 deep-water wells exist only in the Gulf of Mexico. In addition, semi-submersible platforms and drill ships are the two drilling rigs most frequently used for deep water reserves.
A few of the well-known market leaders in the global drilling rigs market that are profiled by Research Nester are Maersk A/S, Archer Ltd., China Oilfield Services Ltd., Eni Spa, Helmerich and Payne Inc., KCA Deutag, Loews Corporation, Nabors Industries Ltd., Transocean Ltd., Weatherford International Plc., and others.
Recent Development in the Market
- A drilling contract with Equinor was awarded to Transocean Ltd., according to the company. The Transocean Enabler will drill one well for carbon injection and a sidetrack for a second well for carbon injection, both of which were drilled earlier in 2020 in support of the Northern Lights Carbon Capture Storage Project.
- The first-ever completely automated land drilling rig, the PACE-R8O, has been launched, according to Nabors Industries Ltd. It was created using Canrig robotics and the Smart Suite software.
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