The Geosteering services market is expected to grow at a CAGR of more than 3% over the period of 2020 - 2025. Factors such as an increase in the complexity of wellbore due to increased depth and use of multiple horizontal wells, increasing the number of rigs, and rising production of natural gas is expected to drive the market. However, the volatility of crude oil and natural gas is expected to restrain the market's growth.
- The rotary steerable system is expected to witness growth in the forecast period. It is a very important part of the geosteering services market as it makes it much easier to drill the wellbore by reducing the associated issues related to the zonal formation and horizontal drilling.
- Gas hydrates production may become an opportunity for the market players as its economically viable production may pose new problems, which may require better geosteering services techniques.
- Due to the high output of shale oil and gas, North America is expected to be the largest market during the forecast period, with majority demand coming from the United States and Canada.
Key Market Trends
Rotary Steerable System to Witness Growth
- Having better surface control through the rotary steerable system may allow more maneuverability to geosteer through complex geology, minimize seismic uncertainty, and make informed geosteeering decisions to place your wells in the specific zones. This provides real-time control and insight to help enhance zonal understanding and get the most out of the well at the lowest cost. Aiding the growth of the oil and gas production increase the company's reliability of the geosteering services market.
- Geosteering service providers continue to advance rotary steerable systems to deliver accurate wellbore placement, optimize borehole quality, and enable maximum drilling efficiency. In 2019, Weatherford International plc unveiled the Magnus rotary steerable system. The system combines reliable, high-performance drilling with precise directional control, fully independent pad control, a fully rotating bias unit with a minimal bottom hole, and assembly (BHA) stabilization. The system comprises several modular components to facilitate quick and easy maintenance, even in remote locations. The increase in the advancements in the industry are expected to aid the growth of the market.
- Natural gas produced in the world has increased by 3.4%, to 385.98 billion cubic feet, in 2019 from 373.22 billion cubic feet, in 2018. The increased utility of natural gas has ordained an increase in natural gas production to meet the world's consumption.
- Rigs number in the world has increased significantly by 11.13%, to 13177 units, in 2019 from 11857 units, in 2018. An increasing number of rigs directly corresponds to the increase in the demand for the geosteering services in the industry. The number of rigs may increase further in the forecast period, thereby boosting the geosteering rotary steerable services market's growth.
- Therefore, geosteering rotary steerable services are expected to increase in the forecast period due to an increase in the number of rigs, rising production of natural gas, and advancements in the realm of geosteering technology.
North America to Dominate the Market
- North America region is among the largest geosteering services market and is expected to continue its dominance in the coming years. The region consists of major oil and gas oil production basins in the world, which provide fertile ground for further growth in the industry.
- The United States is the largest user of the geosteering services in the region, especially with the boom in shale oil and gas in many of the onshore basins like the Permian basin have contributed to the advancement in the Geosteering services market. Shale oil and gas have steadily increased in the country and depend significantly on the geosteering services to conduct multilateral horizontal drillings in the shale basins.
- North America increased its output of crude oil increased significantly to 1027.1, in 2018 from 918.7, in 2017. Whereas, the region's gas production increased from 826.8, in 2017 to 906.2, in 2018. Increasing production is expected to create demand for better geosteering services techniques.
- In 2018, the United States Interior Department allowed drilling in nearly all the United States waters, which is among the biggest expansions of offshore oil & gas leasing by the federal government in the history of the United States. This new development is expected to drive offshore exploration and production activity, and hence, the demand for geosteering services is likely to increase in the future.
- Hence, the North America region is expected to dominate the market due to its vast crude oil and natural gas upstream sector, rising exploration in the offshore industry, and increasing demand for fossil fuel.
The geosteering services market is moderately fragmented. Some of the key players in this market are Schlumberger Limited, Halliburton Company, Baker Hughes Company, Weatherford International PLC, National-Oilwell Varco, Inc.
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