Advanced drilling technology services such as geosteering and measurement while drilling technologies (MWD) are aiding companies in drilling process by providing access to real time data. Geosteering technology provides real time information in the form of surveys, imaging studies, 2D and 3D projections of the terrain around the oil reservoir by continuous adjustment of placement of the drill head above the oil well .Extensive seismic testing is also done using geosteering to test the viability of the terrain for drilling. To monitor the data continuously on surfaces, measurement while drilling (MWD) is used. It is a form of water logging technology which incorporates the measuring tools into the drillstring by further providing real time information to steer the drill. Unlike conventional logging tools, this technique can be used at extreme angles by encompassing a single module in the drill string. MWD technology uses gyroscopes, magnetometers and accelerometers to determine the borehole information by providing their wellbore position, directional data and the drill bit information. The data obtained is transmitted to the surface by pulses and electromagnetic telemetry which is further decoded and sent to the offsite location. Companies such as GE, Shell, Exonn Mobil, National Oilwell Varco, Tolteq and BP are investing in these technologies for carrying out drilling activities.
OIL AND GAS WELLS DRILLING SERVICES MARKET TO GROW TO $251 BILLION BY 2020 ACCORDING TO THE BUSINESS RESEARCH COMPANY
The Business Research Company expects the global oil and gas wells drilling services market to grow from $241 billion in 2016 to $251 billion in 2020 at a compound annual growth rate (CAGR) of 1.1%. The Middle East was the largest region in the oil and gas wells drilling services market in 2016, accounting for $64 billion or 26.8% of the market. This is mainly because of high presence of oil and gas companies in the region demanding contract drilling services.
The chart below shows the year-on-year growth of the global oil and gas wells drilling services market during 2016 – 2020.
According to The Business Research Company’s consultant, Abdul Wasay, oil and gas drilling companies are increasingly using high-performance mud motors as a cost effective alternative for directional drilling operations. High-performance mud motors are robust high-powered mud motors used for both directional and vertical drilling in high pressure and temperature environment. These motors deliver maximum power output for optimal bit performance and well steerability. They are suitable for drilling zones with broader boundaries, achieve greater torque, and have an increased rate of penetration (rop) than conventional mud motors. High-performance mud motors can result in daily operational cost savings of more than 50% over rotary steerable systems (rss). For instance, high-performance mud motors when used in thamana formation in uae delivered better than average rop of 8.5 meters/hr.
Schlumberger was the largest competitor in the oil and gas wells drilling market with revenues of $8.6 billion in 2016. Schlumberger’s growth strategy aims at overcoming the prolonged oil slump by acquiring drilling service providers. In 2016, the company acquired coiled tubing drilling units from Xtreme Drilling and Coil Services Corp, which includes 11 coiled tubing units in Saudi Arabia and the USA. It has also purchased 20% of share in Borr Drilling, a newly established offshore drilling company based in Norway, for an approximate amount of $220 million, to secure more drilling activities. The company acquired Cameron International Corporation, an oilfield equipment manufacturer, in 2016, to enhance its technology portfolio in the oil and gas wells drilling services market.
The oil and gas wells drilling services industry includes companies primarily engaged in oil and gas wells drilling services for others on a contract or fee basis. This industry also includes contractors specializing spudding in, drilling in, redrilling, and directional drilling. This market covers outsourced drilling services sold on a contract basis to oil and gas extraction companies and does not include any in-house drilling services of oil and gas extraction companies.
The drilling process comprises of two stages which include distillation drilling and well simulation. The initial phase involves drilling to the bottom of an aquifer, the drill is then retracted, which thereby loosens the rocks and sediments under the surface. Surface casing is inserted in the bore which acts as a barrier between the aquifer and the drilling equipment. It also acts as a safety device which connects the rig to the wells. Cement which is pumped through the casing is used to seal the well from the aquifer. The drilling process is carried out continuously to create a well. Production casing is then inserted throughout the length of the well. The next phase is simulation which involves hydraulic fracturing process and facilitates oil and natural gas to flow up to the surface from the well. Other fluids such as salt saturated water, drilling muds and brine also rise up to the surface. These fluids are then sent to storage tanks which are further recycled or disposed.Casings are procured from metal manufacturing companies, whereas drilling equipment is procured from machinery manufacturing companies. The market also covers fracking activities which can be defined as the process of extracting gas by drilling the surface by injecting water, sand and chemicals at high pressure.
Oil And Gas Wells Drilling Services Market Global Briefing 2017 is a detailed report giving a unique insight into this market. The report is priced at $1000 for an individual user. To use across your office the price is $1500 and $2000 if you wish to use across a multinational company.
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