PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1290840
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1290840
Drill Collar Market size was valued at USD 1,190.3 million in 2022, expanding at a CAGR of 4.8% from 2023 to 2030.
A drill collar is a drill string component that is used to provide weight on the bit for drilling purposes. The weight of the collar helps steady the drill and keeps the drill in tension, thereby increasing the cutting efficiency of the bit. Drill collars are usually constructed from thick-walled carbon steel, but can also consist of nonmagnetic copper, steel, or other metal alloys. For example, a 10,000ft drill string may be comprised of 9,000ft of drill pipe and only 500ft of drill collars. Much like drill pipe, drill collars are made in 31ft lengths and are screwed together vertically on the drilling rig. In contrast, to drill pipe, drill collars are thick-walled and heavy, with very limited flexibility.
Increasing demand from the oil and gas industry owing to the growing energy demands is a key factor contributing to the growth of the drill collar market. The growing energy demands worldwide have led to increased exploration and production activities in the oil and gas industry. According to energy and climate statistics, the United States was the world's largest oil products consumer in 2021, accounting for 17% of global consumption, followed by China (16%) and India (5%). The advancement of drilling technologies expands the applications and demand for drill collars.
The Global Drill Collar Market is segmented on the basis of Product Type, Deployment and Region.
The market is divided into two categories based on product type: Standard Steel Drill Collar and Non-magnetic Drill Collar. The Standard steel drill collar type dominates the market and is likely to maintain its dominance during the forecast period. These are commonly used in drilling operations. They are made from high-strength alloy steel and provide the necessary weight on bit (WOB) during drilling. In general, standard steel drill collars have traditionally been more prevalent in the market due to their widespread use and availability.
The market is divided into two categories based on Deployment: Onshore and offshore. The onshore dominates the market. new investment in the onshore oil and gas industry, increasing exploration of unique resources, and the crude oil price stability are expected to increase the demand for drill collar across the world.
Geographically, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business. North America is expected to dominate the growth of the Drill Collar market, due to increased exploration activity and focus on the development of new oil and gas fields. Drill collars play a crucial role in drilling operations for natural gas extraction, similar to their role in oil drilling. Reserves of U.S. natural gas increased by 152.1 trillion cubic feet (Tcf) (32%), from 473.3 Tcf at the year-end of 2020 to 625.4 Tcf at the year-end 2021, establishing a new record for natural gas proved reserves in the United States. With the expanding oil and gas exploration activities, there has been a rise in the number of new oil wells, which, in turn, is enhancing the demand for drill collars across the globe. Overall, rising oil and gas investments, along with development of shale plays, are expected to drive the growth of the global drill collar market over the forecast period.
Due to the continued development in demand for drill collars in the coming years, the worldwide market for Drill collars is made of both international and local producers, making it one of the most competitive sectors in the world. Companies that have a wide global reach and a strong distribution network can effectively serve customers in various regions. Firms that have strong customer relationships, offer timely support, and provide services like inspection, repair, and maintenance gain a competitive edge. they focus on material innovation for drill collars to have a competitive advantage. For example, In March 2023 Offshore well construction and production technology company Reelwell signed a five-year frame agreement with the Norwegian oil firm Equinor to provide DualLink Powered and Wired drill pipe, ahead of installing and operating the system at Equinor's Oseberg field. A group of projects aims to develop new innovative technologies for use in offshore drilling operations.
In May 2020 A UK patent has been granted for new technology which can almost half the cost of extended reach drilling (ERD) well liner installations. Patents are also pending in Europe, the USA, Canada, UAE and Saudi Arabia.
The scope of this report covers the market by its major segments, which include as follows: