Global Measurement While Drilling Market by Well Type (Horizontal, Directional, Vertical), by Location (Offshore, Onshore) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global measurement and drilling market was worth USD 11.9 billion in 2019. It is projected to grow at 7.8% compound annual growth rate (CAGR), between 2020-2027. This is due to the significant increase in oil and gas exploration activity over the forecast period. The rising energy demand has resulted in a heavy dependence on traditional fuels. To meet rising energy demand, market leaders have increased their exploration of unconventional sources like tight and Shale gas. This has led to the rise of Measurement While Drilling ("MWD") in the market. The measurement while drilling tools allow for real-time bottom hole pressure and temperature. They also provide directional survey data and drilling parameters. Advanced telemetry techniques transmit the downhole data to the surface, allowing the operator to make fast and efficient decisions, which results in lower operational costs, less time and greater efficiency.

The market was worth USD 1.2 billion in the United States in 2019, according to a 2019 report. The market is being driven by rising shale gas production and relatively stable oil prices in 2019. The market will also be positively affected by the increasing unconventional drilling activity in major oil basins like Eagle Ford, Permian Basin and Williston.

The market for measuring while drilling will grow if there is a greater demand for equipment rentals. Without increasing monthly costs, key industry players can improve their drilling abilities by renting equipment and tools. Operators can take advantage of the latest developments by renting measurement supplies, such as mud pulse or gamma radiation measurement while drilling kit.

The market for measuring while drilling will grow if there are more investments in technological advances. Schlumberger's GyroSphere MEMS Gyro-while Drilling Service was launched in August 2018. This allows the gyrosphere sensor perform faster gyro surveys than conventional systems. This microelectromechanical system technology provides accurate access to smaller reservoir targets and reduces drilling risks by a significant amount.

Furthermore, innovations in telemetry methods such as oscillating shear valves allow for reliable data transmission to the surface even in wells subject to high-lost-circulation-material content, heavy vibration, and high flow rates. Nabor's AccuDrift measurement during drilling unmanned survey system provides high-quality data that reduces nonproductive time compared to traditional wireline surveys systems. It also prevents unwanted drilling events without crew members present on the rig.

Location Insights

Due to the extreme offshore drilling activities, the onshore location segment accounted for 56.9% of revenue in 2019. In April 2020, there were 687 onshore rigs worldwide. This compares to 228 offshore rigs. Onshore drilling is the main source of market revenue.

Due to rising deep-water and ultra-deep water exploration and production activities, the offshore segment will experience the fastest CAGR at 8.8%. Directional drilling also has the largest market share in this segment. This positively influences the measurement while drill product demand across all segments of the market.

To increase oil and gas production and generate more revenue, industry participants are looking at potential offshore projects in North America. In 2018, BP Canada Energy Group proposed an off-shore exploration drilling project as part of its exploration licenses for the Orphan Basin. These developments will have a positive impact on the drilling market during the forecast period.

Well Type Insights

In 2019, horizontal drilling accounted for 26.7% of the total revenue. This segment is expected to grow at 6.1% during the forecast period. This requires precision in visualization of drilling direction in three dimensions, and the determination of bit position. This will help to boost the growth of the market measurement while drilling. Unconventional drilling has increased as a result of growing oil demand and increasing exploration of untapped resources.

North America is seeing an increase in unconventional drilling equipment as both the horizontal and vertical rig counts have increased significantly in 2019. On June 6, 2020, North America had 269 horizontal drilling rigs, compared with 29 directional and 7 vertical. This is a sign of the growing adoption of measurement while drill services in the region.

In 2019, directional drilling made up 17.6% of total revenue in the measurement while drilling industry. Due to its efficiency and cost benefits, directional drilling is gaining popularity. Many basins, such as the Powder River basin in the U.S., are equipped with advanced electro-magnetic measurements and drilling tools to increase oil and gas production via directional drilling and hydrofracturing.

Conventional reserves rely heavily on vertical drilling to explore. These reserves are decreasing faster than the rate at which they replenish and will not be able to meet growing energy demands. Multi-stage hydraulic fracturing is being combined with vertical drilling to reduce operational costs in areas rich in hydrocarbon formations like Permian Basin. This helps balance out operating costs while increasing drilling efficiency.

Regional Insights

North America held 21.9% of 2019's market share, accounting for the largest revenue share. Unconventional drilling has increased as a result of rising oil demand. Because many known oil and natural gas reserves cannot be recovered using conventional methods, advanced technologies like measurement while drilling can reduce the cost of exploration and increase recovery efficiency associated oil sands and tar sands as well as unconventional gas and shale gas.

To increase economic production from fossil fuels, the U.S. government invests in many unconventional oil and gas drilling projects. In January 2018, the U.S. Energy department allocated funds in excess of USD 30.0 million to R&D for unconventional shale development. These selected projects are located in Mississippi and Louisiana, which contain approximately 7.0 million sweet crude oils that can be drilled using advanced techniques like hydraulic fracturing or horizontal drilling. These techniques will help to fuel the market for drilling while measuring.

The market for measurement while drilling in Asia Pacific was valued at USD 3.9 million in 2019. It is expected to experience significant growth during the forecast period. The market for measuring while drilling around the globe has grown due to rising investments and increased energy demand in emerging countries like India, China, and Indonesia. The demand for regional measurement while drilling will continue to grow due to the increased activity in deep water and ultradeepwater drilling.

Eni, an Italian company, awarded TechnipFMC the drilling contract in March 2019. This contract was for the development of the offshore Merakes gasfield in Indonesia. It used advanced unconventional drilling techniques. The government of Indonesia also supports trade policies like 0% import duty for drilling platforms. This helps to increase the demand and encourage unconventional drilling techniques.

Market Share Insights & Key Companies

Due to the presence major companies, the market for measuring while drilling is very competitive. The severe risk involved in oil and gas exploration activities makes measurement while drilling a highly competitive market. Prominent market players hold the majority of the industry's share. Many companies are engaging in strategic initiatives like mergers and acquisitions in an effort to increase their market share, reduce operational costs and improve operational efficiency. The following are some of the most prominent players in measurement and drilling:

• Schlumberger

• Halliburton

• Weatherford International Ltd.

• Cathedral Energy Services

• National Oilwell Varco

• Gyrodata

• Scientific Drilling International

• Leam Drilling Systems LLC

• Jindal Drilling & Industries Ltd.

• Nabors Industries Ltd.

• Calmena Energy Services

Up Market Research published a new report titled “Measurement While Drilling Market research report which is segmented by Well Type (Horizontal, Directional, Vertical), by Location (Offshore, Onshore), By Players/Companies Nabors Industries Ltd, Leam Drilling Systems LLC, Cathedral Energy Services, National Oilwell Varco, Weatherford International Ltd, Calmena Energy Services, Jindal Drilling & Industries Ltd, Scientific Drilling International, Gyrodata, Halliburton, Schlumberger”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Measurement While Drilling Market Report Segments:

The market is segmented by Well Type (Horizontal, Directional, Vertical), by Location (Offshore, Onshore).

Measurement While Drilling Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Measurement While Drilling Market

Overview of the regional outlook of the Measurement While Drilling Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Measurement While Drilling Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Measurement While Drilling Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Horizontal

                2. Directional

                3. Vertical

                1. Offshore

                2. Onshore

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Measurement While Drilling Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Measurement While Drilling Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.