Middle East And Africa Drill Collar Market Size
|Base Year For Estimation||2022|
|Market Size (2023)||USD 276 Million|
|Market Size (2028)||USD 330 Million|
|CAGR (2023 - 2028)||3.67 %|
*Disclaimer: Major Players sorted in no particular order
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Middle East And Africa Drill Collar Market Analysis
The Middle East And Africa Drill Collar Market size is estimated at USD 276 million in 2023, and is expected to reach USD 330 million by 2028, growing at a CAGR of 3.67% during the forecast period (2023-2028).
The Middle-East and African drill collar market is estimated to be at USD 276 million by the end of this year, and it is projected to reach USD 330 million in the next five years, registering a CAGR of over 3.67% during the forecast period.
- Over the medium term, rising investments in the upstream sector aimed at increasing production capacity to maximize profits during the current high-price environment are expected to drive the market during the forecast period.
- On the other hand, the rising adoption of renewable energy across the globe and these regions is expected to curtail the demand for hydrocarbons in the region, restraining the market during the forecast period.
- Nevertheless, the development of smaller complex offshore gas fields remains in the Mediterranean, and the Red Sea remains a significant growth opportunity for the market during the forecast period.
- Saudi Arabia dominates the market and will likely register the highest CAGR during the forecast period. With the growing oil and gas production during the forecast period.
Middle East And Africa Drill Collar Market Trends
Offshore Segment to Witness Significant Growth
- In the aftermath of the COVID-19 pandemic, as demand for hydrocarbons rose due to a recovery in global demand, combined with the economic fallout of the Russia-Ukraine conflict, the price of hydrocarbons rose significantly in global markets. This has prompted many countries to accelerate the development of offshore projects, which were deemed economically unfeasible in the low-price environment.
- Additionally, to profit from the high prices, these countries are investing heavily in expanding production capacity to rake in higher oil revenues. This is expected to result in higher investments in the E&P sector, driving the offshore segment during the forecast period.
- According to Baker Hughes International Rig Count, as of October 2023, the cumulative offshore rig count stood at 44, which was nearly 115% higher than two years ago in October 2020 (20) when the effects of the pandemic started to intensify in the region.
- Due to this, several countries in the region are investing heavily in the development of offshore reserves. For instance, in August 2022, ADNOC Offshore awarded two major offshore drilling contracts totaling over USD 3.4 billion to ADNOC Drilling for the hire of 8 offshore jack-up rigs. Similarly, in June 2022, ADNOC Drilling was awarded two contracts worth USD 2 billion for the integrated drilling services at its Hail and Ghasha Gas Development Project (the world's largest offshore sour gas project), of which USD 1.3 billion was for integrated drilling services and fluids, while USD 711 million was for the provision of 4 Island Drilling Units.
- Such large investments in the sector demonstrate the fact that most countries in the region are trying to benefit from the global high-price environment, which is expected to accelerate investments in offshore projects to expand production capacity, driving the market during the forecast period.
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Saudi Arabia to Dominate the Market
- Saudi Arabia is the largest crude oil producer in the MENA region, and the country has been a global leader in upstream technology. According to the Saudi Ministry of Energy, the country produced 9124.72 thousand barrels/day of crude last year, making it the 3rd largest producer of crude oil. Last year, the country produced 120.46 billion cubic meters of gas, making it the 8th largest producer globally.
- The country is the largest producer of crude oil in the MENA region and has the second-largest proven crude oil reserves globally. The country's E&P sector is dominated by the state-owned hydrocarbon utility Saudi Aramco, the world's largest exporter of crude oil.
- Saudi Arabia is one of the most influential members of the OPEC cartel, and since the COVID-19 pandemic decimated energy demand globally, the country has been slowly raising production quotas to keep oil prices stable globally.
- The country's upstream sector is focused on the development of massive limestone reservoirs in the country's onshore and offshore areas, such as the world's largest conventional onshore oil field (Ghawar) and the largest conventional offshore field (Safaniyah). These colossal fields have been producing for a long time and still have significant recoverable reserves. Additionally, Saudi Arabia has also started the development of the Jafurah Shale play, the country's largest unconventional shale play, estimated to hold nearly 200 Trillion cubic feet of shale gas.
- Drilling and completion of new wells is a significant investment; however, Saudi Arabia has one of the lowest costs of drilling globally. According to Saudi Aramco, the average upstream lifting cost was USD 3 per barrel produced in both 2021 and 2020.
- According to Baker Hughes International Rig Count, as of October 2023, Saudi Arabia's cumulative rig count stood at 86, which was nearly 8.9% higher than one years ago in October 2022.
- Saudi Aramco disclosed plans to boost its capital expenditure (CAPEX) to USD 40-50 billion this year, up by nearly 50% from last year, with further growth expected until 2025. The company plans to increase its crude production capacity to 13 million barrels/day by 2027 and aims to increase gas production by nearly 50% by 2030.
- Such ambitious expansion plans, coupled with new-age goals of complying with sustainability and environmental standards, are expected to attract significant investments and require major innovation in the sector, factors which are expected to drive the upstream market in the country and the demand for drill collars in the country during the forecast period.
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Middle East And Africa Drill Collar Industry Overview
The Middle-East and African drill collar market is moderately consolidated. Some of the major players, in no particular order, include Hunting PLC, National Oilwell Varco Inc. (NOV), Schlumberger Limited, China Vigor Drilling Oil Tools and Equipment Co. Ltd, and International Drilling Services Ltd (IDS).
Middle East And Africa Drill Collar Market Leaders
National Oilwell Varco Inc. (NOV)
China Vigor Drilling Oil Tools and Equipment Co. Ltd
International Drilling Services Ltd (IDS)
*Disclaimer: Major Players sorted in no particular order
Middle East And Africa Drill Collar Market News
- Jun 2022: Vallourec SA won a 10-year contract for providing the supply of Premium Casing and inventory management services and will cover a part of Saudi Aramco's needs for Premium OCTG (Oil Country Tubular Goods) (including drill collars) solutions for its drilling operations. The contract has been signed on a call-off basis, placed every quarter during the term of the agreement. The first two on-call orders have already been received, with delivery scheduled for early 2023.
- Nov 2021: ADNOC awarded nearly USD 6 billion in contracts for downhole completion equipment, wellheads, and related components. Of the total investment, USD 3.27 billion was allocated for 10-year-long contracts signed with UAE subsidiaries of TechnipFMC and Baker Hughes, Gulf Automation Services & Oilfield Supplies (GASOS), and Al Ghaith Oilfield Supplies & Services Company for the supply of wellheads and related components. The rest of USD 2.34 billion was allocated to contracts signed with Schlumberger Middle East and Weatherford Bin Hamoodah for the downhole completion equipment and related services. These contracts have a length of 5 years with an option of a further 2-year extension.
Middle East And Africa Drill Collar Market Report - Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.2 Market Size and Demand Forecast in USD, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGEMENTATION
5.1.1 Standard Steel Drill Collar
5.1.2 Non-magnetic Drill Collar
5.2 By Location of Deployment
5.3 By Geography
5.3.1 Saudi Arabia
5.3.2 United Arab Emirates
5.3.4 South Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Companies Profiles
6.3.1 Hunting PLC
6.3.2 National Oilwell Varco Inc. (NOV)
6.3.3 Schlumberger Limited
6.3.4 China Vigor Drilling Oil Tools and Equipment Co. Ltd
6.3.5 International Drilling Services Ltd (IDS)
6.3.6 Schoeller-Bleckmann Oilfield Equipment AG
6.3.7 American Oilfield Tools Inc.
6.3.8 Challenger International Inc.
6.3.9 Zhong Yuan Special Steel Co. Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Middle East And Africa Drill Collar Market Research Faqs
How big is the Middle East And Africa Drill Collar Market?
The Middle East And Africa Drill Collar Market size is expected to reach USD 276 million in 2023 and grow at a CAGR of 3.67% to reach USD 330 million by 2028.
What is the current Middle East And Africa Drill Collar Market size?
In 2023, the Middle East And Africa Drill Collar Market size is expected to reach USD 276 million.
Who are the key players in Middle East And Africa Drill Collar Market?
Hunting PLC, National Oilwell Varco Inc. (NOV), Schlumberger Limited, China Vigor Drilling Oil Tools and Equipment Co. Ltd and International Drilling Services Ltd (IDS) are the major companies operating in the Middle East And Africa Drill Collar Market.
Middle East And Africa Drill Collar Industry Report
Statistics for the 2023 Middle East And Africa Drill Collar market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle East And Africa Drill Collar analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.