Rotary Drilling Rig Market Trends

Statistics for the 2023 & 2024 Rotary Drilling Rig market trends, created by Mordor Intelligence™ Industry Reports. Rotary Drilling Rig trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

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Market Trends of Rotary Drilling Rig Industry

This section covers the major market trends shaping the Rotary Drilling Rig Market according to our research experts:

Offshore Rotary Drilling Rig Market to Witness a Significant Growth

  • Rotary drilling is an efficient technology applied in the offshore oil and gas sector. It is a drilling technology that relies on the continuous circular rotation of the bit to break rocks. In contrast, drilling fluids circulate through the bit and up the wellbore to the surface, making it possible to drill safely and efficiently the well.
  • As of 2021, the offshore oil and gas industry accounts for about 30% of global crude oil production. The Middle-East, North Sea, Brazil, the Gulf of Mexico, and the Caspian Sea are the major offshore oil and gas producing regions. In addition, the availability of abundant resources, coupled with increased potential to recover oil and gas from Deepwater and ultra-deepwater areas, is expected to provide a great opportunity for the rotary drilling market.
  • Further, during the stable oil price environment, the Deepwater drilling activities witnessed a spike in revenue as the project, which was not viable due to low crude oil prices, got started and increased the demand for rotary drilling services.
  • The deepwateroil production is majorly concentrated in four countries - Angola, Brazil, Nigeria, and the United States. During the past years, deepwaterinvestments have retained a significant share of share, reflecting opportunities in the Gulf of Mexico and offshore Latin America (Brazil and Guyana).
  • Mature offshore fields are also creating opportunities for the rotary drilling market in the offshore segment. In Norway, oil companies plan to nearly double exploration drilling offshore Norway to focus on more mature areas of the Norwegian Continental Shelf (NCS). Moreover, Angola's deepwaterproduction is also set to ramp up as its shallow-water sector matures. Therefore, focusing on increasing production from mature fields, the demand for rotary drilling services in the offshore segment is expected to be driven during the forecast period.
Rotary Drilling Rig - Market Share

North America is Expected to Dominate the Market

  • With the highest natural gas production and second-highest oil production in 2021, North America is one of the major oil and gas producers in the world, which is mainly driven by the oil and gas activities in the United States and Canada.
  • The region has nearly 586 rotary rigs as of 2021, with the United States as the largest market. The United States has the largest rigs 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.
  • The development of shale gas in this region is also one of the biggest drivers for the rotary drilling market. According to the United States, Energy Information Administration (EIA), in 2020, United States dry shale gas production was estimated at about 26 trillion cubic feet (Tcf), which is equal to about 78% of the country's total dry natural gas production in 2020.
  • Furthermore, EIA has also estimated that the shale gas and tight oil plays production in the United States is likely to reach 33.94 Tcf by 2050, registering a steady growth of 1.28% annually, when considered between 2020-2050.
  • On the other hand, Canada is expected to increase the share of tight and shale gas in the natural gas production. According to the Canada Energy Regulator, by 2035, it is expected that tight and shale gas production together will represent 80% of Canada's natural gas production.
  • Apart from shale gas, the region is also witnessing a significant increase in the offshore drilling activities. In January 2020, the Government of Canada approved three offshore drilling projects in the Atlantic Ocean, planned by BHP, Equinor, and Chevron, respectively. Hence, such a scenario is likley to make the North American region as dominant during the study period.
Rotary Drilling Rig Market - Geography

Rotary Drilling Rig Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)