Downhole Tools Market Trends

Growth Drivers

• Increasing Drilling Activities– Downhole tools are the equipment used in oil & gas exploration, as the discovery of new wells rises the drilling activities increase.  Volumes discovered in impact wells have approximately doubled to roughly 2 billion (boe) barrels of oil equivalent. Other than oil wells, downhole tools, such as casing, screens, and drill bits are also employed in water wells. They penetrated the ground to carefully lay the casing pipes, for ensuring proper water flow.
• Rising Trade of Oil & Gas – the growing business of oil & gas will increase the demand for oil & gas, which leads to higher productizing and higher use of equipment for evaluation and drilling of both onshore and offshore wells. In 2021, the export of oil-based products in Mexico was around 35.4 metric tonnes and it was the highest in the world.
• Surging Development in Directional Drilling– Downhole tools, such as directional drilling involves a range of drilling tools, that are required for drilling different locations and in different direction. Therefore, significant advancement in drilling tools, such as the integration of 3D earth models, and 3D visualizations will increase their demand in the industry.

Challenges

• High Prices of Crude Oil- Volatility in the prices of oil & gas directly impacts the production of oil & gas. Moreover, the supply chain of the oil & gas industry also gets affected. Higher prices impact the cost throughout the supply chain. The prices of raw materials, equipment, and labor everything rise, and it squeezes the profit margins of operators. The primary cause for the sudden rise in prices is geopolitical events and weather-related hazards.
• Higher Inclination Towards Renewable Energy Sources
• Ecological Harms Caused by Drilling