Oil and Gas Wells Drilling Services Global Market Report 2024

The oil and gas wells drilling services market size has grown steadily in recent years. It will grow from $136.65 billion in 2023 to $143.42 billion in 2024 at a compound annual growth rate (CAGR) of 5.0%. The growth witnessed in the historical period can be ascribed to the increase in worldwide energy demand, exploration and production endeavors, fluctuations in oil and gas prices, infrastructure development, and geopolitical factors.

The oil and gas wells drilling services market size is expected to see steady growth in the next few years. It will grow to $167.18 billion in 2028 at a compound annual growth rate (CAGR) of 3.9%. The anticipated growth in the forecast period can be credited to the shift towards renewable energy, the need for unconventional resources, environmental and sustainability objectives, the expanding natural gas market, and a focus on safety and risk mitigation. Major trends expected in the forecast period comprise digitalization and automation in drilling, technological advancements in drilling techniques, the integration of digitalization and data analytics, a growing demand for directional drilling, and the emergence of rig automation.

The swift pace of innovation in oil and gas exploration and drilling technologies is enhancing production volumes and reducing production costs. Technological advances enable oil and gas wells drilling companies to improve recovery rates and significantly lower exploration and drilling expenses. For instance, the utilization of 3D seismic technology optimizes exploration and drilling processes, boosting oil and gas production while reducing associated costs. Other areas witnessing rapid technological advances in the oil and gas market include hydraulic fracturing and horizontal drilling. Consequently, advancements and innovation in exploration and drilling technologies are anticipated to propel the oil and gas wells drilling services market in the forecast period.

The increasing offshore production activities are expected to drive the growth of the health and wellness market in the future. Offshore production activities, conducted in countries other than the company's home country, utilize oil and gas well drilling services for drilling new wells and maintaining existing ones. For example, as of March 2023, according to Rystad Energy, a Norway-based energy research and business intelligence company, global offshore activity accounted for 68% of sanctioned conventional hydrocarbons in 2023, with supply chain spending on offshore activity increasing by 16% to reach $21 billion in the same year. Consequently, the growth of offshore production activities contributes to the expansion of the health and wellness market.

The outbreak of the COVID-19 disease (COVID-19) acted as a significant restraint on the oil and gas wells drilling services market in 2020. Fears over COVID-19 led to lower oil prices, exacerbated by a price war when OPEC members could not agree on production cuts in February 2020, causing a decline in the dollar price of WTI Crude per barrel. COVID-19, identified in 2019, spread globally, impacting economic activity as countries implemented lockdown measures. This had a negative impact on businesses throughout 2020 and into 2021. However, the oil and gas wells drilling services market is expected to recover from this shock over the forecast period, considering it as a 'black swan' event unrelated to ongoing or fundamental weaknesses in the market or the global economy. Additionally, current uneconomic oil prices for many operators may result in lower supply in the medium term as operators reduce activity or cease trading, leading to a potential upturn in prices.

Oil and gas wells drilling companies are increasingly embracing 3D visualization systems to streamline operations, reduce project cycle times, and enhance drilling accuracy. These systems generate a 3D model of a wellbore and provide real-time drilling data for monitoring and optimizing the drilling process. By allowing geoscientists and drilling engineers to virtually locate, visualize, and test drilling sites, the system facilitates automatic diagnosis of drilling issues, leading to improved collaboration. This technology results in significant cost savings of up to 20% and a 20% reduction in non-productive drilling time. Integrated with asset teams through software, these systems ensure precise and accurate placement of drill sites. Key players in the 3D visualization technology market include eDrilling, Hexagon, Mechdyne, and Landmark.

Major companies are actively engaged in developing innovative technologies to deliver reliable services. One such advancement is the introduction of acoustic platforms, which can be either software or hardware systems designed for processing and recording audio signals. For example, TGT Oil and Gas Services, a Dubai-based barrier diagnostics company, launched ChorusX in June 2023. ChorusX is a diagnostic tool tailored for locating and describing flow in oil and gas wells. This technology empowers energy companies to precisely identify and monitor fluid movement across the well/reservoir system. Comprising a small array of eight nano-synchronized sensors, ChorusX records high-resolution flow sounds over a wide dynamic range of intensities and frequencies.


Major companies operating in the oil and gas wells drilling services market report are Saudi Arabian Oil Company, Exxon Mobil Corporation, China National Petroleum Corporation, TotalEnergies SE, Chevron Corporation, Marathon Petroleum Corporation, Phillips 66, Enel S.p.A., Eni S.p.A., Petróleo Brasileiro S.A. - Petrobras, Repsol YPF S.A., ConocoPhillips, China National Offshore Oil Corporation Limited, Siemens Energy AG, Schlumberger Limited, Baker Hughes Incorporated, Halliburton Company, Saipem S.p.A., National Oilwell Varco Inc., China Oilfield Services Limited, Weatherford International PLC, Gazprom Neft Public Joint Stock Company, Nabors Industries Ltd., Transocean Limited, Helmerich & Payne Inc., Noble Corporation, Diamond Offshore Drilling Inc., Rowan Companies Inc., Valaris PLC, Ensco Drilling International Inc.

North America was the largest region in the oil and gas wells drilling services market in 2023. Middle East was the second largest region in the oil and gas wells drilling services market. The regions covered in the oil and gas wells drilling services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the oil and gas wells drilling services market report are Australia; China; India; Indonesia; Japan; South Korea; Bangladesh; Thailand; Vietnam; Malaysia; Singapore; Philippines; Hong Kong; New Zealand; USA; Canada; Mexico; Brazil; Chile; Argentina; Colombia; Peru; France; Germany; UK; Austria; Belgium; Denmark; Finland; Ireland; Italy; Netherlands; Norway; Portugal; Spain; Sweden; Switzerland; Russia; Czech Republic; Poland; Romania; Ukraine; Saudi Arabia; Israel; Iran; Turkey; UAE; Egypt; Nigeria; South Africa.

The primary categories of oil and gas well drilling services are onshore drilling services and offshore drilling services. Onshore drilling involves deploying a drilling rig deep into the ground to access fossil fuels. Services provided in onshore drilling include constructing oil and gas wells for purposes such as production, exploration, and appraisal. It also covers different well types such as vertical, deviated, and horizontal wells. The range of services includes directional and non-directional drilling, utilizing machine parts such as rigs, pipes, bits, reamers, among others.

The oil and gas wells drilling services market research report is one of a series of new reports that provides oil and gas wells drilling services market statistics, including oil and gas wells drilling services industry global market size, regional shares, competitors with an oil and gas wells drilling services market share, detailed oil and gas wells drilling services market segments, market trends and opportunities, and any further data you may need to thrive in the oil and gas wells drilling services industry. This oil and gas wells drilling services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The oil and gas wells drilling services market includes revenues earned by entities by providing services concerning well construction, maintenance, and reconstruction. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.