Global measurement while drilling market is expected to witness a strong growth owing to increasing oil and gas exploration activities over the forecast period. Growing energy demand has resulted in heavy dependence on fossil fuels. Such a trend has resulted in industry participants increasing their oil and gas exploration initiatives to meet the energy demand.
Measurement while drilling concerns itself with measuring various parameters during directional drilling. These parameters include hole inclination from vertical, magnetic direction from north, and formation rock & fluid properties, which are measures as per requirements. Several different types of tools are used for measuring multiple parameters. MWD tools provide real-time data, which enables quick and efficient decisions resulting in higher efficiency, reduced time, and lower operational costs.
Major subcomponents of these tools include power system, telemetry system, and directional sensors. Power systems can be classified as battery or turbine types. Batteries are usually lithium-thionyl chloride batteries while the turbine power system depends on the drilling fluid flow to generate electricity.
Key telemetry systems include mud-pulse systems, hardwire telemetry, and electromagnetic transmissions. Mud-pulse systems are the most common telemetry systems used currently. Other telemetry systems are used for specific situations such as electromagnetic transmission system is used when air or foam is used as a drilling fluid.
Increasing energy demand has resulted in huge investments by leading industry participants for oil and gas exploration. Such massive investment initiatives are projected to aid the global measurement while drilling market. Technological advancements have resulted in MWD tools with superior properties that are operational in the harshest environments.
Such advancements have led to companies being able to access petroleum in even deeper and harsher formations. Increasing offshore exploration activities encourage directional drilling owing to cost and efficiency benefits. Such a trend is presumed to aid the global market over the forecast period. Shale gas revolution in North America in the recent past is projected to complement the regional market over the forecast period.
Fluctuating crude oil prices pose as a major threat to the market. The recent slump in crude oil prices has resulted in several industry participants abandoning their exploration activities due to low or negligible profitability. Recent natural gas price decline due to shale gas revolution, particularly in North America, is another factor that is anticipated to negatively impact the regional market. Stringent regulatory framework resulting from growing environmental concerns is presumed to hamper global market growth.
Technological advancements to develop superior products offer ample opportunities for the industry participants. Industry participants are eyeing regions such as the arctic shelf to explore for oil and gas. Government initiatives to develop their domestic petroleum industry, especially in the developing regions such as Asia Pacific, Middle East & Africa, and Central & South America, offer ample opportunities for growth and development.
Measurement while drilling market can be classified as offshore and onshore operations. Though onshore operations have dominated the global market over the past, offshore exploration operations are projected to a witness rapid growth. Such brisk growth can be attributed to the industry participants eyeing harsher, deeper, and less accessible petroleum formations with an aim to cater to growing energy demand.
North America accounted for the largest market share in the recent past owing to the developments such as shale gas revolution and favorable government initiatives. Developing regions including Asia Pacific, Middle East & Africa, and Central & South America are expected to witness a brisk growth in future. Such growth forecast is expected to be a result from government initiatives to develop the domestic petroleum industry to fulfill their energy needs.
The industry is characterized by high risk associated with oil and gas exploration activities. A large chunk of the global market is captured by prominent industry participants. In light of the recent slump in crude oil prices, several high profile mergers and acquisitions have taken place. These strategic initiatives are undertaken with an aim to gain market share, increase efficiency, lower cost, and enhance product & services portfolio.
Major industry participants include Halliburton, Schlumberger, Weatherford International Ltd., Cathedral Energy Services, Key Energy Services, General Electric Oil and Gas, Scientific Drilling International, Nabors Industries Ltd., Calmena Energy Services, Jindal Drilling & Industries Ltd., National Oilwell Varco, Gyrodata, and Leam Drilling Systems LLC.
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