July 21, 2024

Oilfield Drill Bits Market Is Expected To Be Flourished By Increasing Shale Oil And Gas Exploration Activities

Oilfield drill bits are cutting tools used to drill oil and gas wells. The main types of oilfield drill bits include fixed cutter bits, roller cone bits, and hybrid bits. Fixed cutter bits, also known as diamond bits, drill the well by scraping or shearing away formation material from the bottom of the borehole. Roller cone bits use a combination of shearing and crushing actions. Hybrid bits combine components of fixed cutter and roller cone designs. Oilfield drill bits are used in onshore and offshore oil and gas drilling applications. Increasing shale oil and gas exploration activities around the world are driving demand for drill bits that can drill long Horizontal laterals while maintaining directional control.

The global Oilfield Drill Bits Market is estimated to be valued at Us$ 9.17 Bn in 2023 and is expected to exhibit a CAGR Of 5.5% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

 

Increasing Shale Oil and Gas Exploration Activities: There has been a notable rise in shale oil and gas exploration around the world over the past decade due to advancements in horizontal drilling and hydraulic fracturing technologies. Shale oil and gas reserves provide energy security and revenue generation opportunities for many countries. Drilling shale reservoirs requires directional drilling of long horizontal laterals, which is driving demand for high-performance drill bits that can withstand extreme temperatures and pressures while achieving high drilling rates. This increasing focus on shale exploration worldwide is expected to significantly drive the demand for oilfield drill bits during the forecast period.

The global oilfield drill bits market is competitive due to the presence of large multinational corporations. Market players are focusing on new product launches and mergers & acquisitions to gain market share. For instance, in 2021, Baker Hughes announced the launch of its new M710-C diamond element fixed cutter drill bits, which are specifically engineered for shale drilling applications.

Segment Analysis

The oilfield drill bits market is dominated by the roller cone sub segment. Around 60% of the market share is held by roller cone bits as they can drill a variety of rock types and formations. They are most commonly used in oil and gas exploration as they provide consistent drilling performance in horizontal, directional and extended reach wells.

PEST Analysis

Political: Geo-political tensions and volatility in oil producing countries can impact exploration and production activities of oilfield drill bits market. Favorable government policies to boost domestic oil and gas production will support market growth.

Economic: Fluctuations in crude oil prices influence capital expenditure of E&P companies on drilling activities. High oil prices encourage exploration projects and increase the demand for drill bits.

Social: Growing energy needs have led to increased drilling activities worldwide. However, concerns around environment and community impacts of oil & gas drilling restrain the market to some extent.

Technological: Advancements in materials, manufacturing techniques and designs have improved drill bit performance. Development of polycrystalline diamond compact (PDC) and hybrid bits boost penetration rates. Integrated systems for measurement-while-drilling and logging-while-drilling enhance efficiency.

Key Takeaways

The Global Oilfield Drill Bits Market Demand  is expected to witness high growth over the forecast period supported by increasing crude oil demand and rising exploration budgets of E&P companies worldwide. The global oilfield drill bits market is estimated to be valued at US$ 9.17 Bn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023 to 2030.

Regional analysis

North America accounts for over 40% of the global market share led by the U.S., owing to extensive drilling in the Permian, Eagle Ford and Bakken shale plays. The number of rigs drilling new wells in the U.S. has increased steadily since 2016 reflecting recovery in regional drilling activity.

 

Key players

Key players operating in the oilfield drill bits market are Baker Hughes Inc., Drill Master Inc, Ulterra Drilling Technologies, National Oilwell Varco Inc., Halliburton Inc., Schlumberger, Atlas Copco AB and Scientific Drilling International Inc. Baker Hughes and Schlumberger collectively hold around 50% of the global market share due to their wide product portfolio and global presence.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it