| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2020 - 2023 |
| CAGR | 2.00% |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
North America Drilling Market Analysis
The North America Drilling Market is expected to register a CAGR of greater than 2% during the forecast period.
- The United States is going to dominate the market as the country has the largest proven reserves for oil and gas coupled with government support to promote the production of oil and gas.
- The deepwater and ultra-deepwater segment is expected to witness significant development due to the increasing technological innovation and the rising viability of such operations.
- Offshore is going to dominate the market as onshore reserves are exhausted in the region, and only offshore wells provide viable profitability.
North America Drilling Market Trends
United States would dominate the geographical segment
- The United States is expected to be one of the largest markets for drilling services, mainly due to the increasing number of wells being drilled and fracked in the shale and tight reserves, which is supported by the low breakeven price of the basins.
- With the ongoing war between Ukraine and Russia, companies producing Oil and Gas in the United States witnessed record-breaking profits and are in line to make tens of billions in additional profits. For instance, Chevron is expected to make a potential of an additional USD 6.5 to USD 7.5 billion if the price of oil averages at USD 120 billion, which directly aids drilling operations in the country.
- For instance, in 2021, the United States government reopened the land to develop oil and gas fields to meet the global demand for oil and natural gas and deal with high prices in the United States, which would aid the market.
- Overall, increasing crude oil prices and government support would aid the United States, Drilling Market.
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Offshore is the most viable option to recover hydrocarbons
- The North American region has one of the most well-developed offshore oil and gas industries globally, with the primary areas of focus being the vast reserves in the Gulf of Mexico and offshore Alaska region. As drilling depths have increased over the years, the volume of technically recoverable reserves has increased significantly, which, in turn, attracted significant investments in the region's offshore oil and gas industry.
- As the United States invested heavily in expanding its oil and gas production capacity, the Gulf of Mexico has become a global hotspot for offshore drilling. As of 2021, the Gulf of Mexico region is responsible for 97% and 15% of the US offshore and total hydrocarbon production, respectively. The region has one of the highest global densities of offshore oilfield services.
- Several incentives for shallow-water drilling have been provided in the past by the United States, such as low royalty rates and also modifications for the already leased shallow-water fields, such as decreasing royalty from 18% to 12.5%, with an aim to increase the E&P activities in shallow waters.
- The 32 shallow water blocks received bids in Sale 251 in August 2018, which drove the growth of the market studied. GOM lease sales held in August 2019, Lease Sale 253, generated USD 174.9 million in high bids for 151 tracts covering 835,006 acres in federal waters. Therefore, with increased bidding in the last few years, the market is expected to be moderately driven during the forecast period, majorly in the Central and Eastern regions.
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North America Drilling Industry Overview
The North America Drilling market is moderately consolidated. The major companies include Schlumberger Limited, Baker Hughes Company, Chevron, ConocoPhillips, Halliburton Company
North America Drilling Market Leaders
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Schlumberger Limited
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Baker Hughes Company
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Chevron Corporation
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ConocoPhillips
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Halliburton Company
- *Disclaimer: Major Players sorted in no particular order
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North America Drilling Market News
- Lease Sale 257's results were announced in November 2021, which offered approximately 15,148 unleased blocks located from three to 231 miles offshore, in the Gulf's Western, Central and Eastern Planning Areas in water depths ranging from nine to more than 11,115 feet (three to 3,400 meters). However, in January 2022, the sale of offshore oil and gas leases was canceled by a United States judge, thereby hindering the market growth.
- In January 2020, the Government of Canada approved three offshore drilling projects in the Atlantic Ocean, planned by BHP, Equinor, and Chevron, respectively. In April 2022, the Canadian government approved the USD 12 billion Bay du Nord offshore oil project proposed by Equinor ASA. Bay du Nord would be Canada's first remote deepwater project at around 1,200 meters (4,000-ft).
North America Drilling Industry Segmentation
The North America Drilling Market report includes:
| Application | Institutional Sites |
| Commercial Facilities | |
| Remote Off-grid Communities | |
| Other Applications | |
| Type | Custom Microgrid |
| Remote Power Systems | |
| Other Types |
Application
| Institutional Sites |
| Commercial Facilities |
| Remote Off-grid Communities |
| Other Applications |
Type
| Custom Microgrid |
| Remote Power Systems |
| Other Types |
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North America Drilling Market Research FAQs
What is the current North America Drilling Market size?
The North America Drilling Market is projected to register a CAGR of greater than 2% during the forecast period (2025-2030)
Who are the key players in North America Drilling Market?
Schlumberger Limited, Baker Hughes Company, Chevron Corporation, ConocoPhillips and Halliburton Company are the major companies operating in the North America Drilling Market.
What years does this North America Drilling Market cover?
The report covers the North America Drilling Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the North America Drilling Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Page last updated on: June 9, 2023
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North America Drilling Industry Report
Statistics for the 2025 North America Drilling market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. North America Drilling analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
