Increasing Investment in Oil and Gas Projects Boosts Managed Pressure Drilling Market Growth
According to our latest market study on "Managed Pressure Drilling Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis — by Technology and Application," the market was valued at US$ 4.85 billion in 2023 and is anticipated to reach US$ 7.22 billion by 2031; it is estimated to record a CAGR of 5.1% from 2023 to 2031. The report includes growth prospects in light of current managed pressure drilling market trends and driving factors influencing the market growth.
The capital expenditure related to the oil & gas industry to meet the global oil and gas demand is proliferating. According to the International Energy Forum, the annual upstream oil and gas capital expenditures increased by US$ 63 billion in 2023, and it is expected to increase by US$ 26 billion in 2024. Further, the oil demand was recorded to be around 103 million barrels per day (bpd) in 2023 and is expected to reach 110 million bpd by 2030. Several significant investments have been observed in oil and gas projects worldwide, leading to the availability of funds for procuring modern technologies that improve the drilling process. According to the Upstream Oil and Gas Investment Outlook Report in 2023, the global cumulative investment in oil and gas-related projects is expected to reach US$ 4.3 trillion between 2025 and 2030. In 2023, TotalEnergies, an oil and gas company, invested ~US$ 10 billion in the Lake Albert oilfield development project in Uganda. The company will supply the East African Crude Oil Pipeline. In 2023, Woodside announced its plan to develop the US$ 12 billion for the Scarborough and Pluto Train 2 LNG projects in Western Australia. In 2023, Eni invested more than US$ 5.4 billion in Bahr Es Salam deep-water gas and condensate development offshore in Libya. In 2023, Woodside invested US$ 4.5 billion for an ultra-deepwater Trion oilfield offshore project in Mexico. ExxonMobil invested US$ 3.5 billion for the ultra-deep oilfield offshore project Uaru in Guyana. According to the Brazilian National Agency of Petroleum (ANP—Agência Nacional do Petróleo), the oil & gas sector in the country is expected to receive an investment of US$ 13.00 billion in the exploration and production (E&P) activities in 2021. Of the total, ~US$ 4.00 billion (R$ ~16 billion) will be dedicated to the drilling sector. Thus, managed pressure drilling is gaining immense traction, which is likely to have a significant impact on the managed pressure drilling market forecast in the coming years.
Managed Pressure Drilling Market Analysis – by Geography, 2023
Managed Pressure Drilling Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Technology (Constant Bottom Hole Pressure, Mud Cap Drilling, Dual Gradient Drilling, and Return Flow Control Drilling), Application (Onshore and Offshore), and Geography
Managed Pressure Drilling Market Size, Growth, Share by 2031
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Source: The Insight Partners Analysis
According to the Oxford Energy data in December 2019, the Brazilian Petroleum, Gas and Biofuels Institute (IBP), an industry association representing oil and natural gas producers, US$ 135 billion will be invested in exploration, drilling, and production till 2030, with a peak of ~US$ 19 billion in 2024–2025. As per NES Fircroft data, in January 2020, the Alaska LNG liquefaction plant project was in the pipeline for several years, with several invested parties operating as a consortium under the name Alaska LNG. These parties are ExxonMobil, ConocoPhillips Alaska, and Alaska Gasline Development Corporation, holding 35%, 20%, and 25% shares, respectively. Further, BP plc held a 20% share, but in August 2019, it agreed to sell all of its Alaskan interests to Hilcorp Alaska for US$ 5.6 billion. Therefore, the growing investment in the oil and gas sector is likely to create substantial opportunities for the managed pressure drilling market growth during the forecast period.
The scope of the managed pressure drilling market report focuses on North America (US, Canada, and Mexico), Europe (UK, Germany, France, Italy, and Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America). In Asia Pacific, China held the largest managed pressure drilling market share in 2023. As a result of potential growth in the country's technology sector, the managed pressure drilling market in China is anticipated to witness significant development in the coming years.
China is the world's largest hydrogen producer, with an annual production of 33 million metric tons of hydrogen, according to the China Hydrogen Alliance (CHA). This accounts for about one-third of the total global hydrogen output. Most of the hydrogen production in China is derived from oil or coal-based plants situated in refineries or chemical facilities. Notably, coal-based production remains a more cost-effective method compared to natural gas or water electrolysis, with costs ranging from RMB 0.7 to RMB 1.2 per cubic meter (from US$ 0.1 to US$ 0.19). Favorable government policies have played a crucial role in propelling the rapid growth of hydrogen production in China. The country witnessed an increase in production from 25 million metric tons in 2020 to 33 million tons in 2021. As per the China Hydrogen Alliance (CHA), hydrogen production in China will continue to grow and reach an impressive 120 million metric tons by 2060. Moreover, in July 2024, the Chinese government set up new state government bodies to drill for oil and gas reserves to contribute to the country's energy security. CNPC and Sinopec are also investing in maintaining their domestic crude oil production to above 4 million barrels per day. Thus, overall growth in the oil and gas industry across the country has created a massive demand for managed pressure drilling services, which is likely to have a significant impact on the managed pressure drilling market in the next few years.
In the Middle East and Africa, Saudi Arabia held the largest managed pressure drilling market share in 2023. Saudi Arabia witnessed a rise in drilling activities. In 2024, Aramco made a massive capital investment to focus on the expansion of its crude oil and natural production capacity. The Dammam development project in Saudi Arabia is expected to produce more than 25,000 and ~50,000 barrels per day of crude oil in 2024 and 2027, respectively. In 2023, Aramco's capital investments accounted for US$ 49.7 billion, an increase of 28% compared to 2022. In 2024, the company's capital investments are expected to reach between US$ 48 billion and US$ 58 billion. Similarly, in May 2021, Saipem was awarded the extension of two important contracts for offshore drilling activities in Saudi Arabia for a duration of 5–10 years. The total orders value acquired by the offshore drilling division since the beginning of 2021 exceeds US$ 250 million. Therefore, with rising oil production and drilling projects, there is a need for advanced drilling equipment, which fuels the managed pressure drilling market growth in the country.
Ensign Energy Services; ADS Services, LLC; CATL; Archer; Blade Energy Partners; Nabors Industries Ltd; Air Drilling Associates, Inc; Halliburton Co; Ameresco Inc.; ESS, Inc.; SLB; Weatherford International Plc; and NOV Inc. are among the key players profiled in the managed pressure drilling market report. Several other major players were also studied and analyzed in the market report to get a holistic view of the market and its ecosystem. The market analysis provides detailed market insights, which help the key players strategize their growth.
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