A new market research report shows growth trend in the global oil and gas drill bits market.
Transparency Market Research has released a new research document regarding the oil and gas sector, titled ‘Drill Bits Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019’. The report deals with the use of drill bits in oil and gas exploration and production. It displays a precision-driven method in compiling statistical data about the global drill bits market in the oil and gas industry in terms of historical data and future market predictions. According to the report, the global drill bits market for oil and gas industry is currently growing at a CAGR of 4.9% from 2013 to 2019. In 2012, the market totalled 2 597 000 units.
Impact of polycrystalline diamond compact (PDC) cutters
A TMR analyst working on the report said, “The global drill bits market for oil and gas industry was previously dominated by rolling on cone bits. But now, the market is making substantial progress thanks to the use of polycrystalline diamond compact (PDC) cutters. Today, they are used as commonly as roller cone bits in multiple drilling applications.” He also said that the oil and gas industry in general is beginning to prefer PDC drill bits due to the better performance and higher durability they provide. PDC drill bits are more expensive than conventional roller cones, but they help reduce drilling costs as they require a much lesser frequency of replacement or repair, which also helps reduce the overall drilling time.
Rising demand in the Asia Pacific region
The global drill bits market for oil and gas industry is expected to reach 3 605 000 units before the end of 2019. The primary growth driver for the global drill bits market for oil and gas industry to achieve this is the increase in demand for drill bits in the rising production and exploration activities in the world, especially in the Asia Pacific region. Another driver is the technological advancement that has brought better manufacturing techniques and the addition of new drill bits materials composites. The introduction of superior materials has brought about a subsequent change in the global drill bits market for oil and gas industry in terms of drill bit designs, and has further bolstered the market.
But North America is still the market leader
The report’s geographical survey of the global drill bits market for oil and gas industry shows the market leader to be North America. The region was the dominant one prior to the report’s analysis period and will remain the leader during it. The region’s hold on the global drill bits market for oil and gas industry is primarily due to the introduction of horizontal drilling techniques that have immensely improved the rate of production in the last few years. The new technologies in horizontal drilling have opened up the currently booming industry of underground shale deposit drilling. The 2012 analysis in the report shows that 55.5% of the global market share in the global drill bits market for oil and gas industry was collectively held by North America and Europe.
The top players in the global drill bits market for oil and gas industry that have been discussed in the report include Scientific Drilling International, Inc., Varel International, Inc., Halliburton, Inc., National Oilwell Varco, Inc., Ulterra Drilling Technologies, Tercel Bits, and Baker Hughes, Inc. The 2012 market had seen the top four companies account for nearly 66.7% of the market.
Adapted from press release by Cecilia Rehn
You can read more about the latest drill bit technology in our June issue, which is available to read online for free (registration required).