PDC Drill Bits Market: Current Analysis and Forecast (2021-2027)

The PDC drill bits market is estimated to grow at a CAGR of ~5% during the forecast period. Factors, such as increased exploration activity and focus on the development of new oil and gas fields, are expected to drive the market for PDC drill bits. Drilling activities, especially footage drilled, are expected to drive the demand for PDC drill bits. In addition, major players are investing in new offshore drilling sites is further expected to drive the market growth. For instance, in 2020, Royal Dutch Shell submitted plans for seismic activity and exploratory drilling in its West Harrison Bay license in the Beaufort Sea just offshore from the National Petroleum Reserve in Alaska, U.S. In its 5-year plan, the company suggests conducting seismic studies to update geological data and finalize well and reservoir design in 2021-22 and begin and subsequently expand exploratory drilling in 2023-24.

Offshore power is an important part of the world's oil and natural gas supply and could be an increasingly important source of renewable electricity. The resources are enormous, and offshore projects are proving their worth in a changing market and in a political context under various stresses on the world's oceans. For instance, global offshore gas production in 2016 was 17.5 mboe/d and according to IEA's New Policy Scenario, it is expected to increase to 29.6 mboe/d in 2040. Therefore, with increasing production of oil and gas and with high investments in offshore wind energy would propel the market.

Insights Presented in the Report

"Amongst Type, Matrix Body to Witness Higher CAGR During the Forecast Period"

Based on type, the market is bifurcated into matrix body and steel body. Among these, matrix body category to witness strong growth during the forecast period and is expected to hold a significant market share by 2027. Matrix body PDC drill bits are made of tungsten carbide and are known for their high wear resistance and erosion resistance. In terms of cutter count, they are typically a heavier set than their steel body counterparts. Matrix body drill bits are best suited for high volume or high sand applications because they have a longer life and multiple bit runs. Therefore, the demand for matrix body PDC drill bits will be augmented by the need for advanced and efficient drilling technologies. Moreover, key players in the market are launching new products, further supporting the category's growth. For instance, In 2020, Halliburton Company introduced Crush & Shear Hybrid Drill Bit, a new technology that combines the efficiency of traditional polycrystalline diamond compact (PDC) cutters with the torque-reducing capabilities of rolling elements to increase drilling efficiency and maximize bit stability through changing formations.

"Amongst Application, Matrix Body to Witness Higher CAGR During the Forecast Period"

On the basis of application, the market has been categorized into onshore and offshore. In 2020, onshore held a significant share in the market. Increase of onshore oilfields in regions like North America and Europe are witnessing a technology-driven revolution that focuses on efficiency enhancements, reduction in non-productive drilling activity time, and improvements in drilling tools. As per the Baker Hughes' International Rig Count in 2018, the average number of onshore operating rotary rigs globally was 1,972 compared to 220 offshore rigs during the same year. The increasing production activities and reduction in non-productive time are expected to drive the onshore segments of the market. Furthermore, onshore drilling encompasses all the drilling sites located on dry land and accounts for 70% of the global oil production. The global crude oil prices witnessed signs of recovery and are improving at a good pace and the onshore projects are easier to kick start than offshore projects.

"North America to Hold Significant Share in The Market"

With the demand of crude oils rising, the oil and gas companies have started to redirect their exploration focus toward unconventional and deep reservoirs such as shale gas, coal bed methane (CBM), tight gas, heavy oil, and pre-salt- considered as original due to low availability of conventional reservoirs. Globally around 93 million barrels of crude oil are consumed every day. Out of this 20% of the consumption is done in the United States which is equivalent to 19.69 million barrels per day. The demand for oil increased by 0.1 MMb/d month-over-month in August to 98.4 MMb/d, mainly driven by North America. Thus, North America is expected to hold a significant share in the PDC drill bits market, owing to the large chunk of activities for shale gas exploration in the region. Over the past decade, the lateral lengths of the unconventional wells drilled in the United States, increased by 180%. Similarly, According to the Canadian Government, in 2018, oil production from Canada is anticipated to reach 4.5 mmbpd by 2020, and the production is expected to increase from an offshore well situated in the West Orphan Basin, offshore Newfoundland, and Labrador, which is estimated to hold 25.5 bbl of oil and 20.6 tcf of gas.

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