Drilling Rig Market Trends
Growth Drivers
- Increasing Investment in Energy Sector – With rising the investment in energy sector, companies are increasing exploration and production activities, leading to more drilling rigs being employed.
- Growing Exploration in the Sector– With the new finding, the need for commercializing its use increased the need for drilling and extracting the energy, which in turn drive the demand for drilling rigs. Also, there has been a rise in exploration activities across the globe which is one of the major factors contributing to the increasing requirement of drilling rig. The global oil and gas exploration industry enjoyed a banner year in 2022, with an average of more than 150 million barrels of oil equivalent discovered, about doubling the previous decade's average.
- Rising Production of Unconventional Oil & Gas –Drilling rig is used for injecting the high-pressure fluid in the fractures which are required for the extraction of unconventional energy resources. Moreover, it also aids the construction of wells, deep into the earth’s crust for its storage. Global unconventional oil production, comprising shale oil from the United States, is expected to reach around 6 million barrels per day by 2035.
Challenges
- Transition to Renewable Energy – There is various renewable energy that is vastly exceeding the use of oil and gas. Solar energy, wind energy, and geothermal energy are replacing the oil and gas application from various industries, including water heating, space heating, electricity generation, and even in transportation.
- Uncertain prices in the energy sector
Adverse impact of drilling the reserves on the environment
