Downhole Equipment Market Trends

Growth Drivers

• Surging Hydrocarbons Exploration and Production- The increase in exploration of hydrocarbon gas liquids with the growing demand for ethane, propane, and natural gas used in every end-use sector is leading in onshore & offshore exploration undertakings across the globe. Moreover, with the rapid development of onshore activities, there is a rise in the demand for downhole equipment for wellbore drilling.
• Increasing Production of Unconventional Gases – Owing to the rising focus on future energy security, the investment in the drilling operations to discover conventional gases such as shale gas and others is growing rapidly. Moreover, the rising need for shale gas processing equipment and the development of a wide variety of downhole tools potentially for their use in unconventional shale gas development is anticipated to propel the market growth.
• Growth in Drilling Activities – The surge in the number of explorations, extractions, and increase in oil companies’ production is all backed by the elevated drilling activities worldwide. Since 2022, the drilling activities by U.S. oil companies grew by 60%. This upsurge is estimated to boost the demand for drilling tools.

Challenges

• Fluctuating Oil Prices - the disruption in demand & supply of oil globally owing to the sudden outbreak of a pandemic, economic recessions, and market inflation in many countries of the world is responsible for volatile crude oil prices. The volatility of the global oil industry is discouraging investment in downhole operations and is hampering the growth of the downhole equipment market.
• Stringent Engineering Regulations
• Concern About Adverse Effects on the Environment