New York, United States, Feb. 09, 2024 (GLOBE NEWSWIRE) -- Downhole tools refer to the tools utilized for effective drilling, interventions, and completions. These tools help locate untapped oil reserves beneath the surface and optimize oil well production levels. Roller centralizers, drilling jars, drag friction, fishing, shock, tubular tools, and drill pipes are among the most commonly utilized downhole tools. These instruments are utilized in the bottom hole assembly for workover operations and are highly effective under extreme temperatures and pressures. They also aid in maintaining the correct flow and investigating the reservoir's qualities by measuring the quality of rock, sand, and liquid surface samples.
Downhole tools are the most common pieces of oil and gas mining equipment used for drilling, handling, controlling, well formation, production, and completion. The global expansion of the market can be attributed to the growing demand for oil and gas in the form of automobile fuel and household cooking, especially in developing nations. In addition, because the majority of downhole tools are designed to perform specific tasks, they reduce mining expenses by reducing human labor and accelerating operations.
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Increased drilling activities drives the market
According to Straits Research, “The global downhole tools market revenue was valued at USD 4.13 billion in 2021 and is projected to reach USD 6.87 billion by 2030 at a CAGR of 5.23% 2022 to 2030.” Drilling activity expansion remains the primary contributor to the expansion of the market for down-hole tools. An advantage over conventional equipment is provided by the enhanced efficiency of the downhole tools to increase oil production without increasing production costs.
As a result of technological advancements and operational efficiencies, the operational costs associated with E&P activities have decreased. Rising demand for crude oil and natural gas has prompted European and North American E&P companies to engage in a variety of offshore and onshore drilling operations.
Advanced Technologies In The Oil And Gas Sector Are Driving The Market
The primary market drivers have always been the oil and gas industry's ongoing technological advancements in exploration and production. Globally increasing drilling activity and rising demand for the product has fueled the market expansion. Market leaders are continually focusing on new technologies in order to remain competitive and enhance drilling operations with minimal cost and a higher ROP.
In spite of frequent downturns in the oil and gas industry, technological advances in drilling have substantially increased production levels and company profits over the years. Utilizing horizontal drilling and hydraulic fracturing, market leaders can now access oil and gas reserves. These reserves are located in low-permeability geological formations, and standard drilling requires a substantial investment to extract them.
Advanced Downhole Tools Will Bring In New Opportunities
Multinational corporations and established businesses are also expected to expand significantly in the market. In the coming years, the introduction of automated solutions is anticipated to drive growth in the Downhole Tools Market. In the current Downhole Tools Market landscape, automation is making its mark, and it is anticipated to meet the challenge of effectively following a prescribed downhole route. Companies in the current Downhole Tools Market are concentrating on enhancing drill tool guiding dexterity in accordance with the required penetration rate (ROP).
Regional Analysis
The Middle East and Africa downhole tools market size accounted for 33.57 percent of total revenue. The region's demand for completion & brine fluids is anticipated to increase over the next eight years due to rising concerns regarding sampling and oily drilled cuttings, as well as environmental consequences and waste discharge. Numerous market participants, including Abu Dhabi National Oil Company, NDC (National Drilling Co.), and others, are increasing their investments in exploration and production, which contributes to the expansion of the market.
Demand for biodegradable brine fluids is anticipated to increase over the forecast period in Saudi Arabia due to a combination of stringent environmental regulations pertaining to carbon footprint and rising concern over the environmental impacts of offshore E&P activities.
The exploration of deep water and unconventional reserves is gaining the attention of Asia-Pacific-based market participants. In the coming years, it is anticipated that technological advancements aimed at lowering production costs and boosting output will play a crucial role in accelerating market expansion. In the coming years, the market in Indonesia is anticipated to be bolstered by a rise in oil consumption due to a rise in energy demand. The market for downhole tools in Indonesia is moderately concentrated.
Key Highlights
- The rise in drilling activities and advanced downhole tools are driving the market.
- This market can be segmented on the basis of product, application, region, and competitors.
- By 2030, the Middle East is anticipated to have the largest market share, with the Asia Pacific emerging as the fastest-growing market.
Competitors Analysis
The market is characterized by the presence of multinational corporations that are actively engaged in mergers & acquisitions, technological innovation, research & development, and strategic alliances to increase their dominance over rivals. In addition, companies such as Halliburton, Schlumberger, and Weatherford International have invested in the expansion of their production capabilities in order to improve their portfolios and regional presence.
Stabiltec Downhole Tools LLC, BILCO Tools, Inc., Frank's International N.V., Varel International Energy Services, Inc., Ulterra Drilling Technologies, L.P., Baker Hughes, and National Oilwell Varco, Inc. are a few other significant players.
Recent Developments
- Baker Hughes announced in March 2022 that it had acquired Altus Intervention, a 40-year-old international provider of well intervention services and down-hole oil and gas technology.
- BurgerFi International Inc., the owner of one of the nation's fastest-growing premium fast-casual concepts under the BurgerFi brand, has completed its acquisition of Anthony's Coal Fired Pizza & Wings in November 2021.
- In April 2022, Schlumberger acquired 16 firms and invested in 25 others. The company has spent over $27.69 billion on acquisitions. Schlumberger has invested in numerous industries, including oil and gas technology, smart grid technology, and smart cities.
- In January of 2022, the world's largest oilfield contractor, Schlumberger, is preparing for global expansion, anticipating that several years of crude-demand growth will be sparked by recovering economies.
Segmentation
Product Outlook
- Drilling Tools
- Handling Tools
- Flow & Pressure Tools
- Control Tools
- Others
Application Outlook
- Well Drilling
- Well Intervention
- Formation & Evaluation
- Production & Well Completion
By Location
- Onshore
- Offshore
- Shallow Water
- Deepwater
- Ultra-Deepwater
Regional Outlook
- North America
- Europe
- Asia Pacific
- MEA
- Central & South America
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