Managed Pressure Drilling Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The managed pressure drilling services market was valued at USD 3.09 billion in 2020 and is expected to reach USD 4.11 billion by 2026, at a CAGR of 5.33% during the forecast period of 2021-2026. Due to the COVID-19 pandemic, the oil and gas industry witnessed a significant decline due to the various lockdowns and restrictions, which resulted in decreased demand for managed pressure drilling services. Factors, such as increasing depths of wells being drilled combined with increasing offshore exploration and production activities, are expected to increase the demand for managed pressure drilling services. However, the high volatility of oil and gas prices is expected to act as a restraint to the managed pressure drilling services market during the forecast period.

Key Highlights

• The constant bottom hole pressure is expected to be the largest market for managed pressure drilling services during the forecast period.
• Development in technology in managed pressure drilling techniques coupled with the adoption of industry 4.0 is expected to create new opportunities for the market players in the near future.
• North America is expected to dominate the managed pressure drilling services market owing to shale gas boom and increasing production activities.

Key Market Trends

Constant Bottom Hole Pressure Technology to Dominate the Market

• The constant bottom hole pressure segment is expected to have the largest market share during the forecast period. This growth is attributed to extensive utilization of the technology for drilling offshore wells across the United States Gulf of Mexico as well as in other regions globally.
• The growing preference towards the CBHP technique is the result of its ability to provide improved well site safety by controlling the annular pressure while drilling. As managed pressure drilling is mainly used offshore, this technique is extensively used in the Gulf of Mexico, North America region.
• The technology is also used to overcome other operational challenges such as non-productive time is wasted by lost circulation or gas influxes in the high-pressure procedures and formations.
• Therefore, based on the above-mentioned factors, the constant bottom hole pressure segment is expected to dominate the market over the forecast period.

North America to Dominate the Market

• North America's managed pressure drilling services market dominated the global demand accounting for over 38% of the total revenue in 2020. Rising demand for cost-efficient and safe pressure drilling techniques coupled with favorable government initiatives such as easy FDI flow and capital incentives.
• With the highest natural gas production and second-highest oil production in 2020, North America is one of the major oil and gas producers in the world, which is mainly driven by the oil and gas activities in the United States and Canada.
• The exploration and production activities in the Gulf of Mexico have given opportunities to the operators for using managed pressure drilling services across the region.
• The United States is anticipated to hold the largest share in this region and is expected to continue its dominance in the coming years as well.
• Canada is expected to witness a significant growth rate over the next decade owing to the development of alternative sources for drilling including tight oil and tar sands.
• Therefore, based on the above-mentioned factors, North America is expected to dominate managed pressure drilling services market during the forecast period.

Competitive Landscape

The managed pressure drilling services market is moderately fragmented. Some of the key players in this market include Halliburton Inc, Weatherford International, Schlumberger Limited, National Oilwell Varco, and Nabors Industries Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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