Oil
and Gas Drill Bits Market is expected to grow at a robust pace during the
period of 2024-2028. Oil and gas drill bits are used in oil exploration and
drilling boreholes in various layers of rock formations to access oil and
natural gas resources. These are designed to penetrate underground rock
formations quickly and for as long as possible. These tools are classified as
either rolling cones or fixed cutting bits. Roller cone drills are classified
as tungsten carbide insert (TCI) or steel tooth (ST) tools, and fixed edge drills
are defined as polycrystalline diamond (PDC) drills or impregnated drill types.
Oil
and gas drill bits have many uses in the petroleum industry as they are used to
pierce hard materials, such as stone, concrete, and metal. For example, a drill
bit is placed in the chuck (rotating device) of a drill press and the drill bit
is rotated at high speed to cut or drill into a surface. Bits can be attached
to a variety of tools, such as drills, drills, and reamers, and perform
different functions depending on the shape of the tip.
An
oil rig is an important oil drilling tool, used to drill oil in oil production,
and its working performance directly impacts drilling quality, drilling
efficiency, and drilling cost. Whether the chisel is compatible with the nature
of the rock and its quality plays a very important role in the choice of
drilling method. In particular, it has a significant impact on drilling
quality, drilling speed, and drilling costs.
The
global oil and gas drilling bits market is expected to see a significant
surge over the forecast period due to a rapid rise in offshore drilling
activities in response to the world's rising energy consumption. Additionally,
discoveries of oil reserves are expected to boost drilling bit market
growth. Increased financing and activities for efficient product development
procedures are expected to assist the drilling bit industry and minimize
replacement costs and time while extending product life cycles. Due to the
rising interest in oil and gas development over the past several years, the global
oil and gas drill bits market is expected to increase dramatically throughout
the forecast period.
The
growing shale gas development operations worldwide and the increased need for
specialized drilling bits that can handle unconventional rock formation are
other reasons driving the global oil and gas drill bit market. During the
search for shale gas, these drill bits are frequently utilized. The need for
these drill bits has grown along with the expansion of shale gas exploration.
The U.S. Energy Information Administration reports that by 2040, the world's
natural gas production will have increased from 342 billion cubic feet per day
(Bcf/d) in 2015 to 554 Bcf/d. The oil and gas drill bit market is anticipated
to experience an expansion in demand-side due to this enormous growth in
natural gas production.
Increased
exploration and production of sand beds, coupled with new drilling techniques,
such as hydraulic fracturing and fracking, are expected to drive the demand for
polycrystalline diamond (PCD) bits. Moreover, the number of offshore drilling
rigs is expected to increase during the forecast period.
Increasing
Investment by Middle East to Boost Oil and Gas Drill Bits Market
The
Middle East state-owned oil companies continue to invest heavily in oil and gas
capacity expansion projects to maintain their global market share, with
billions of dollars of greenfield investment in pipelines. Abu Dhabi National
Oil Company (ADNOC), Saudi Aramco, Kuwait Petroleum Corporation and Qatar
Energy are leading capacity expansion programs and have ambitious investment
plans for the next few years. ADNOC plans to invest USD 122 billion between
2021 and 2025, aiming to expand its oil production capacity from its current 4
million bpd to 5 million barrels by 2030. It also plans to expand its gas
production capacity under the Hail & Ghasha, Shah Gas, and Dalma Sour gas
projects. Much of Aramco's investment could be diverted to a phased offshore
program critical to its plans to expand oil production in Saudi Arabia to 13
million barrels per day capacity from the existing 12 million bpd. Kuwait Oil
Company (KOC) aims to increase crude oil production capacity to 4 million
barrels per day by 2040, from about 2.43 million barrels per day today. These
investments are expected to drive the global oil and gas drill bits market.
Investment
in Canadian Oil and Gas Exploration to Grow 11% and Touch USD 40 billion in
2023
The
Canadian Association of Petroleum Producers (CAPP) expects spending on oil
patches in 2023 to surpass pre-pandemic levels, three years after the arrival
of COVID-19 caused global commodity prices to drop significantly. Canadian
upstream oil and gas investment hit a low of USD 22 billion in 2020 as COVID-19
restrictions collapsed global demand for gasoline, kerosene, and other energy
products. However, the reopening of the global economy post covid has led to a
dramatic increase in demand.
Combined
with Russia's invasion of Ukraine, oil and gas prices hit record highs in 2022,
resulting in record profits for many Canadian companies. According to CAPP,
the country's conventional oil and gas investment is expected to reach USD 28.5
billion in 2023, while oil sands investment is expected to reach USD 11.5
billion. In addition to a healthy commodity pricing environment, oil
producers are looking forward to the completion of the Trans Mountain Pipeline
expansion. This is expected to provide an additional export capacity of 590,000
barrels per day when it comes online in the second half of 2023.
Latest
Market projects fueling the global oil and gas drill bits market growth during
the forecast period
- In
March 2023, the U.S. government secured a high bid of USD 263.8 million
for oil and gas drilling rights in the Gulf of Mexico. The Office of
Marine Energy Management (BOEM) has provided 73.4 million acres of land on
the US Continental Shelf (OCS) in the Gulf. The Gulf of Mexico accounts
for 15% of US oil production and 1% of natural gas production.
- In 2022,
Chinese private refiner Zhejiang Petroleum & Chemical Co (ZPC) signed
a purchase agreement with Saudi Aramco, Saudi Arabia's state-owned oil
producer, to supply 7.88 million barrels of crude oil. The USD 735 million
deal was closed over the weekend at the 5th China International Import
Expo in Shanghai. Saudi Arabia made shipments of 1.76 million bpd to China
from January to August, increasing its market share to 17.7% from 16.9% a
year earlier.
- In
2020, Saudi Aramco discovered two oil and gas fields in northern Saudi
Arabia. Gas began flowing from the Hadabat al-Hajjara field near the Iraqi
border at an average of 16 million standard cubic feet per day, along with
1,944 barrels of condensate. Abrak in the nearby Turulu oil field, per day
he began producing 3,000 barrels of crude oil, 49,000 barrels of
condensate, and 1.1 million cubic feet of gas.
- In
November 2022, a Hungarian oil and gas company, MOL, planned to invest
nearly USD 100 million in oil and gas exploration in the country by 2023
after discovering a significant amount of oil. The field started producing
initially at 600 barrels per day in November, with plans to increase
production to between 700 and 1,000 barrels per day. The discovery could
increase MOL Hungary's crude oil production by 10% and increase the
country's oil production by 5%. The new well is now MOL's third-largest
well in Hungary and supplies directly to the Dunube refinery in
Százhalombatta. MOL plans to invest approximately USD 490 million in the
development of Hungary's crude oil and natural gas production over the
next 5 years. Of that, 60-65% goes to natural gas, 20-25% to oil, and the
rest to infrastructure maintenance and replacement.
- In
2022, Nigeria began drilling for oil and gas in the Colmani field in the
northeast, with estimated reserves of more than 1 billion barrels of crude
oil and has opened a well site. In addition to drilling, the project,
which has attracted USD 3 billion in investment, aims to open an oil
refinery, gas processing plant, power plant, and fertilizer plant.
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Market
Segmentation
The
global oil and gas
drill bits market is segmented based on material, type, and application. Based
on material, the market is bifurcated into steel, tungsten carbide, and others.
Based on type, the market is bifurcated into fixed cutter bits & roller
cone bits. Based on Application, the market is bifurcated into offshore &
onshore.
Market
players
The
main market players in the global oil and gas drill bits market are
Schlumberger Limited, Baker Hughes Co, Halliburton Inc., National Oil-well
Varco, Inc., Sandvik AB, Scientific Drilling International Inc., Torquato
Drilling Accessories Inc, Epiroc AB, Kingdream Public Limited Company, and
Ulterra Drilling Technologies L.P.
|
Attribute
|
Details
|
|
Base Year
|
2022
|
|
Historic Data
|
2018–
2022
|
|
Estimated Year
|
2023
|
|
Forecast Period
|
2024
– 2028
|
|
Quantitative Units
|
Revenue in USD Million and CAGR for 2018-2022 and 2023-2028
|
|
Report Coverage
|
Revenue
forecast, company share, growth factors, and trends
|
|
Segments Covered
|
Material
Type
Application
Region
|
|
Regional scope
|
North
America; Asia-Pacific; Europe; South America; Middle East & Africa
|
|
Country scope
|
United States; Canada; Mexico; China; Indian; Japan; South
Korea; Australia; Germany; United Kingdom; France; Italy; Spain; Brazil; Argentina;
Colombia; Saudi Arabia; South Africa; UAE
|
|
Key companies profiled
|
Schlumberger
Limited, Baker Hughes Co, Halliburton Inc., National Oil-well Varco, Inc.,
Sandvik AB, Scientific Drilling International Inc., Torquato Drilling
Accessories Inc, Epiroc AB, Kingdream Public Limited Company, Ulterra
Drilling Technologies L.P.
|
|
Customization scope
|
10% free report customization with purchase. Addition or
alteration to country, regional & segment scope.
|
|
Pricing and purchase options
|
Avail
customized purchase options to meet your exact research needs. Explore purchase options
|
|
Delivery Format
|
PDF and Excel through Email (We can also provide the editable
version of the report in PPT/Word format on special request)
|
Report
Scope:
In this report,
Global Oil and Gas Drill Bits Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
- Oil and Gas Drill Bits Market, By
Material:
o
Steel
o
Tungsten
Carbide
o
Others
- Oil and Gas Drill Bits Market, By
Type:
o
Fixed
Cutter Bits
o
Roller
Cone Bits
- Oil and Gas Drill Bits Market, By
Application:
o
Offshore
o
Onshore
- Oil and Gas Drill Bits Market, By
Region:
o
North
America
§
United
States
§
Canada
§
Mexico
o
Asia-Pacific
§
India
§
Japan
§
South
Korea
§
Australia
§
China
o
Europe
§
Germany
§
United
Kingdom
§
France
§
Italy
§
Spain
o
South
America
§
Brazil
§
Argentina
§
Colombia
o
Middle
East
§
Saudi
Arabia
§
South
Africa
§
UAE
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Global Oil and Gas Drill Bits
Market.
Available
Customizations:
Global Oil and
Gas Drill Bits Market report with the given market data, TechSci Research
offers customizations according to a company's specific needs. The following
customization options are available for the report:
Company
Information
- Detailed analysis and profiling of
additional market players (up to ten).
The global
oil and gas drill bits market is an upcoming report to be released soon. If you
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please contact us at [email protected]