Drill Collar Market Research Insights with Upcoming Trends, Opportunities, Competitive Analysis, Forecast to 2022-2031

The drill collar market is expected to register a CAGR of over 1% during the forecast period of 2022-2031. Factors, such as increased exploration activity and focus on development of new oil and gas fields, are expected to help drive the market for drill collar. However, the volatile nature of oil prices in recent years led to decreased exploration activity causing a slowdown of the drill collar systems market.

• The onshore segment is expected to have the maximum share in the market. Onshore drilling encompasses all the drilling sites located on dry land and accounts for 70% of the global oil production.
• North America is the largest market for drill collar, owing to the increased drilling activity in shale plays in the region. The recent development of shale plays, horizontal drilling, and fracking resulted in an increase in the demand for drill collar in the region.
• The demand for oil and gas production has always been on rise, which led to increased exploration activities. This, in turn, is expected to aid the market’s growth over the forecast period. The total rig count increased by 18% from 933 in beginning of 2017 to 1,104 by the end of 2019. Furthermore, during the same time period, the offshore rig count increased by 24% from 206 to 257.

Key Market Trends

Onshore to Dominate the Market

• Onshore drilling encompasses all the drilling sites located on dry land and accounts for 70% of the global oil production. Onshore drilling is similar to offshore drilling but without the difficulty of deep water between the platform and the oil.
• The demand for oil and gas has always been increasing, and this resulted in an increase of drilling activities around the world in an effort to discover new fields. This, in turn, resulted in an increase in the demand for drill collars.
• Currently, the wells are being drilled deeper, and they are more complex than before. This is expected to drive the drill collar market’s growth.
• In 2019, ONGC announced that it allotted INR 6,000 crore for drilling 200 wells over the next seven years in Assam, to increase the output from the state. The wells are expected to be drilled during the next seven years.
• Hence, new investment in the onshore oil and gas industry, increasing exploration of unconventional resources, and the crude oil price stability are expected to increase the demand for drill collar across the world.

North America to Dominate the Market Growth

• North America is a major market for drill collars, owing to the recent shale gas exploration in the region. Exploration in Gulf of Mexico is also on rise, and it is complimenting the drill collar market in the region.
• According to the Canadian government’s report published in 2018, oil production from Canada is anticipated to reach 4.5 mmbpd by 2020 and production is expected to increase from offshore well situated in the West Orphan Basin, offshore Newfoundland, and Labrador, which is estimated to hold 25.5 bbl of oil and 20.6 tcf of gas.
• As a result of higher oil prices and declining drilling costs, the offshore rig count and offshore oil production in the United States increased significantly, indicating growing offshore drilling activities. This is expected to be the major driver for the drill collar market in the country.
• Therefore, factors, such as rising oil and gas investments, along with development of shale plays, are expected to drive the growth of the global drill collar market over the forecast period.

Competitive Landscape

The global drill collar market is highly fragmented, with numerous accounting for the market share. Some of the key players include Hunting PLC, Vigor Drilling, National Oilwell Varco (NOV), Schlumberger Limited, American Oilfeild Tools, Workstrings International, and International Drilling Services Ltd (IDS), among others.

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