Market Trends of Drill Collar Industry
This section covers the major market trends shaping the Drill Collar Market according to our research experts:
Onshore to Dominate the Market
Onshore drilling encompasses all the drilling sites located on dry land and accounts for 70% of the global oil production. Onshore drilling is similar to offshore drilling but without the difficulty of deep water between the platform and the oil.
The demand for oil and gas has always been increasing, and this resulted in an increase of drilling activities around the world in an effort to discover new fields. This, in turn, resulted in an increase in the demand for drill collars.
Currently, the wells are being drilled deeper, and they are more complex than before. This is expected to drive the drill collar market's growth.
In 2019, ONGC announced that it allotted INR 6,000 crore for drilling 200 wells over the next seven years in Assam, to increase the output from the state. The wells are expected to be drilled during the next seven years.
Hence, new investment in the onshore oil and gas industry, increasing exploration of unconventional resources, and the crude oil price stability are expected to increase the demand for drill collar across the world.
North America to Dominate the Market Growth
North America is a major market for drill collars, owing to the recent shale gas exploration in the region. Exploration in Gulf of Mexico is also on rise, and it is complimenting the drill collar market in the region.
According to the Canadian government's report published in 2018, oil production from Canada is anticipated to reach 4.5 mmbpd by 2020 and production is expected to increase from offshore well situated in the West Orphan Basin, offshore Newfoundland, and Labrador, which is estimated to hold 25.5 bbl of oil and 20.6 tcf of gas.
As a result of higher oil prices and declining drilling costs, the offshore rig count and offshore oil production in the United States increased significantly, indicating growing offshore drilling activities. This is expected to be the major driver for the drill collar market in the country.
Therefore, factors, such as rising oil and gas investments, along with development of shale plays, are expected to drive the growth of the global drill collar market over the forecast period.
