The analysts forecast the global downhole drilling tools market to grow at a CAGR of 4.40% during the period 2017-2021.
The report covers the present scenario and the growth prospects of the global downhole drilling tools market for 2017-2021. To calculate the market size, the report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The report also includes a discussion of the key vendors operating in this market.
According to the report, one driver in market is shifting focus toward ultradeep offshore wells. The era of easy oil is over. Oil and gas companies worldwide are looking for new explorations for the extraction of crude oil and natural gas. Drilling in offshore locations is more challenging than drilling onshore due to harsh weather conditions. Oil and gas companies have been very successful in onshore locations for over a century now. Offshore locations have been popular sources of oil and gas for nearly the same time as onshore drilling.
The world has mastered the art of shallow water drilling as well as deep water drilling of oil and gas resources. The focus has now shifted toward the exploration of ultradeep offshore resources, which are found at depths of 1,500 meters and deeper. Drilling at such depths is challenging and requires enhanced drilling tools. This has created an opportunity for drilling tools manufacturers to supply specialized products, which are specifically designed for offshore drilling activities.
One trend in market is supercritical carbon dioxide as a fracking fluid in shale gas fracking. Hydraulic fracturing is a process where large amounts of water, sand, and chemicals are injected into a well to break apart the rock and release the gas. Hydraulic fracturing, also known as fracking' uses water and chemicals to open the pores of the rock formation, which allows the oil and gas to flow to the well. Fracking is widely used and helps to increase productivity from the well.
Further, the report states that one challenges in market is decline in investments in upstream sector. As per the World Energy Investment report, 2016, published by the International Energy Agency (IEA), the upstream oil and gas industry witnessed a 25% decline in investments in 2015 from 2014. This was due to the cost reductions by various upstream companies worldwide, caused by the drop in crude oil prices.