Growing Use of Modern Drilling Equipment for High-Pressure, High-Temperature Wells to Provide Growth Opportunities for Managed Pressure Drilling Market during 2021–2028
According to our latest market study on “Managed Pressure Drilling Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Technology and Application,” the market is expected to grow from US$ 4,298.97 million in 2021 to US$ 6,004.50 million by 2028; it is estimated to grow at a CAGR of 4.9% from 2021 to 2028.
The elevation of the use of modern technology for high-pressure, high-temperature (HPHT) wells drilling is expected to create an opportunity for using managed pressure drilling equipment in the coming years. The drilling activities experience many problems, such as circulation loss, stuck pipe, twisting off, kick, or loss scenarios. Thus, the advanced drilling equipment are used for safe drilling environment. Further, the number of high-pressure, high-temperature (HPHT) wells has been rising year on year, and many more are planned for the near future. Extreme conditions in these wells trigger the potential for disaster and further minimize the margin of error. Managed pressure drilling is usually used in the HPHT well drilling activities as the equipment helps resolve these issues by improving penetration rate, avoiding kick or loss, narrowing passage window drilling, managing mud programs, allowing early identification of wellbore ballooning, ensuring high efficiency, and reducing non-productive time. Thus, the suitability of managed pressure drilling technique for high-pressure, high-temperature (HPHT) well drilling is providing significant growth opportunities for the managed pressure drilling equipment providers.
Based on technology, the managed pressure drilling market is segmented into constant bottom hole pressure (CBHP), mud cap drilling (MCD), dual gradient drilling (DGD), and return flow control drilling (RFCD). In 2020, the constant bottom hole pressure (CBHP) segment led the market, accounting for the largest market share. By application, the managed pressure drilling market is bifurcated into onshore and offshore. In 2020, the offshore segment accounted for a larger market share. Geographically, the market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2020, North America accounted for the significant share in the global market.
Impact of COVID-19 Pandemic on Managed Pressure Drilling Market
The COVID-19 pandemic has shaken several industries across the world. The tremendous growth in the spread of the virus has urged governments worldwide to impose strict restrictions on vehicles and human movement. Due to travel bans, mass lockdowns, and business shutdowns, the pandemic has adversely affected economies and countless industries in various countries. The lockdown imposition has also reduced the production of commodities, goods, and services.
In 2020, the COVID-19 pandemic negatively influenced the oil industry owing to the considerable disruptions in the supply chain activities in the industry coupled with the restrictions on international trade by several countries in the wake of the pandemic. Furthermore, the global oil prices plummeted significantly owing to the limited demand and continuous production by the oil producing countries added to the considerable decline in production activities among the major oil producing countries. Consequently, the discontinuation of oil extraction activities virtually disrupted the demand for managed pressure drilling market. As a result, during the early months of 2020, several countries witnessed a reduction in the demand for managed pressure drilling due to the implementation of lockdown in several countries because of the COVID-19 pandemic, which hindered the global managed pressure drilling market growth.
In 2021, with the uplifting of lockdown and vaccination processes, the manufacturing and construction companies have started working again. Therefore, oil production and the demand for managed pressure drilling equipment and machinery are growing, which would propel the growth of the global managed pressure drilling market in the coming years.
Ensign Energy Services; Archer; Blade Energy Partners; Nabors Industries Ltd.; Air Drilling Associates, Inc.; ADS Services, LLC; Halliburton Energy Services, Inc.; Schlumberger Limited; Weatherford International plc; and NOV Inc. are among the major companies operating in the managed pressure drilling market.
Managed Pressure Drilling Market — by Geography, 2020 and 2028 (%)
Managed Pressure Drilling Market to set CAGR of 4.9% by 2028
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Managed Pressure Drilling Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Technology [Constant Bottom Hole Pressure (CBHP), Mud Cap Drilling (MCD), Dual Gradient Drilling (DGD), and Return Flow Control Drilling (RFCD)] and Application (Onshore and Offshore)
Managed Pressure Drilling Market to set CAGR of 4.9% by 2028
Download Free SampleManaged Pressure Drilling Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Technology [Constant Bottom Hole Pressure (CBHP), Mud Cap Drilling (MCD), Dual Gradient Drilling (DGD), and Return Flow Control Drilling (RFCD)] and Application (Onshore and Offshore)