Drilling Products & Services

Gains in demand will be driven by rising oil prices from recent steep declines, and by increasing adoption of higher value and more efficient products and services, especially those used in horizontal drilling.

US demand to rise 3% annually through 2019

US demand for oil and gas drilling products and services is forecast to increase to $70.6 billion in 2019, reflecting average annual gains of 3.0 percent. While the low oil price environment that began in late 2014 will lead to sharp declines in drilling products and services demand in 2015, a recovery in drilling activity due to improving oil prices should allow demand to exceed 2014 levels within the next few years. Advances will be further supported by increasing adoption of higher value products and services, especially those used in horizontal drilling. However, greater growth will be limited by efficiency gains that will allow wells to be drilled more quickly, restraining growth in spending on contract drilling and other services tied to the number of days needed to drill a well.

Lower oil prices to favor products & services that increase well efficiency

In response to the challenging market conditions that took effect in late 2014 and early 2015, operators shifted their focus to minimizing costs while optimizing well productivity. This renewed emphasis on controlling expenditures resulted in a marked increase in drilling efficiency, allowing wells to be drilled more quickly and at lower cost. Improved drilling efficiency will continue to have a downward impact on overall spending on drilling products and services. However, some products will be impacted more than others. While contract drilling revenues per well will decline, products and services that can help reduce overall costs, including premium tubular goods, drill bits, and drilling fluids, will see healthy growth.

Drilling fluids, tubular goods to see fastest gains

Drilling fluids and tubular goods will see the fastest advances, driven both by overall growth in wells and footage drilled annually and by increasing market penetration for premium products in both segments. High performance water-based drilling fluids will continue to increase their share of the market in unconventional drilling where oil-based fluids have been traditionally chosen. Similarly, increased development of deeper and more challenging drilling environments -- including deepwater and tight oil and shale gas formations -- will drive adoption of higher value casing and drill pipe. There will be additional growth opportunities in some segments of other drilling product and service markets. These are expected to include higher value rig components and downhole equipment necessary for more effective horizontal drilling, such as top drives, mud pumps, and rotary steerable systems, which will also experience healthy increases through 2019.

Study coverage

This Freedonia industry study analyzes the $60.8 billion US drilling product and service industry. It presents historical demand data (2004, 2009 and 2014) and forecasts (2019 and 2024) by product (e.g., tubular goods, rig equipment, pressure control equipment, drill bits, downhole tools, drilling fluids) and service (e.g., contract drilling, logging and measuring, directional drilling) for four regional markets and 17 state markets. The study also considers market environment factors, details industry structure, evaluates company market share and profiles 33 industry players, including Schlumberger, National Oilwell Varco, and Halliburton.

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  1. Drilling Products & Services

    $5,300.00

    1. 1 INTRODUCTION

      $141.00

    2. 2 EXECUTIVE SUMMARY

      $134.00

      1. Table | DRILLING PRODUCTS & SERVICES DEMAND

    3. 3 MARKET ENVIRONMENT

      $2,869.00

      1. 3.1 General

        $114.00

      2. 3.2 Macroeconomic Environment

        $239.00

        1. Table | MACROECONOMIC INDICATORS

      3. 3.3 Crude Oil & Natural Gas Outlook

        $934.00

        1. Table | OIL & GAS PRODUCTION & CONSUMPTION

        2. 3.3.1 Oil & Gas Prices

          $82.00

          1. CHART II-1 NATURAL GAS & CRUDE OIL PRICES, 2004-2014

        3. 3.3.2 Petroleum

          $342.00

          1. Table | PETROLEUM SUPPLY & DEMAND

          2. CHART II-2 US PETROLEUM RESERVES, 2004-2014

          3. CHART II-3 PETROLEUM PRODUCTION, 2004-2014

          4. CHART II-4 CRUDE OIL PRODUCING STATES, 2014

          5. Table | CRUDE OIL DRILLING INDICATORS

          6. CHART II-5 CRUDE OIL DRILLING INDICATORS, 2005-2014

          7. CHART II-6 CRUDE OIL PRICES, 2004-2014

        4. 3.3.3 Natural Gas

          $353.00

          1. Table | NATURAL GAS SUPPLY & DEMAND

          2. CHART II-7 NATURAL GAS RESERVES, 2004-2014

          3. CHART II-8 NATURAL GAS PRODUCTION, 2004-2014

          4. CHART II-9 NATURAL GAS PRODUCING STATES, 2014

          5. Table | NATURAL GAS DRILLING INDICATORS

          6. CHART II-10 NATURAL GAS DRILLING INDICATORS, 2005-2014

          7. CHART II-11 NATURAL GAS PRICES, 2004-2014

      4. 3.4 Drilling Outlook

        $109.00

        1. Table | ACTIVE DRILLING RIGS & WELLS DRILLED

      5. 3.5 Drilling Rigs

        $82.00

        1. Table | ACTIVE & AVAILABLE DRILLING RIGS

      6. 3.6 World Oil & Gas Outlook

        $979.00

        1. Table | WORLD OIL & GAS PRODUCTION BY REGION & RESOURCE

        2. 3.6.1 World Petroleum Outlook

          $512.00

          1. Table | WORLD CRUDE OIL PROVED RESERVES BY COUNTRY, 2014

        3. 3.6.2 World Natural Gas Outlook

          $322.00

          1. Table | WORLD NATURAL GAS PROVED RESERVES BY COUNTRY, 2014

      7. 3.7 Historical Market Trends

        $114.00

        1. Table | DRILLING PRODUCTS & SERVICES MARKET, 2004-2014

        2. CHART II-12 DRILLING PRODUCTS & SERVICES MARKET, 2005-2014

      8. 3.8 Pricing for Selected Drilling Products & Services

        $82.00

        1. Table | PRICING FOR SELECTED DRILLING PRODUCTS & SERVICES

      9. 3.9 Environmental & Regulatory Considerations

        $94.00

      10. 3.10 Foreign Trade

        $82.00

        1. Table | DRILLING EQUIPMENT & CONSUMABLES FOREIGN TRADE

      11. 3.11 World Drilling Products & Services Outlook

        $82.00

    4. 4 TECHNOLOGY OVERVIEW

      $688.00

      1. 4.1 Drilling Technology

        $395.00

        1. 4.1.1 Directional Drilling

          $82.00

        2. 4.1.2 Horizontal Drilling

          $109.00

        3. 4.1.3 Pad Drilling

          $82.00

        4. 4.1.4 Other Drilling Technologies

          $92.00

      2. 4.2 Drilling Rig Technology

        $82.00

      3. 4.3 Drilling Fluids

        $82.00

      4. 4.4 Unconventional Oil & Gas

        $171.00

        1. 4.4.1 Tight Oil

          $82.00

        2. 4.4.2 Shale Gas

          $82.00

        3. 4.4.3 Coalbed Methane

          $82.00

    5. 5 PRODUCTS & SERVICES

      $2,516.00

      1. 5.1 Supply & Demand

        $92.00

        1. Table | DRILLING PRODUCTS & SERVICES DEMAND

      2. 5.2 Services

        $689.00

        1. 5.2.1 General

          $87.00

          1. Table | DRILLING SERVICES DEMAND

          2. CHART IV-1 DRILLING SERVICES DEMAND BY TYPE, 2014

        2. 5.2.2 Contract Drilling

          $142.00

          1. Table | CONTRACT DRILLING DEMAND BY LOCATION & REGION

        3. 5.2.3 Logging & Measuring Services

          $184.00

          1. Table | LOGGING & MEASURING SERVICES DEMAND BY TYPE & REGION

        4. 5.2.4 Directional Drilling Services

          $118.00

          1. Table | DIRECTIONAL DRILLING SERVICES DEMAND BY REGION

        5. 5.2.5 Other Drilling Services

          $94.00

          1. Table | OTHER SERVICES DEMAND BY REGION

        6. 5.2.6 Market Share

          $82.00

          1. CHART IV-2 DRILLING SERVICES MARKET SHARE, 2014

      3. 5.3 Equipment & Consumables

        $428.00

        1. 5.3.1 General

          $115.00

          1. Table | DRILLING EQUIPMENT & CONSUMABLES DEMAND

          2. CHART IV-3 DRILLING EQUIPMENT & CONSUMABLES DEMAND BY TYPE, 2014

        2. 5.3.2 Tubular Goods

          $211.00

          1. Table | TUBULAR GOODS DEMAND BY PRODUCT & REGION

        3. 5.3.3 Rig Equipment

          $100.00

          1. Table | RIG EQUIPMENT DEMAND BY REGION

      4. 5.4 Pressure Control Equipment

        $634.00

        1. Table | PRESSURE CONTROL EQUIPMENT DEMAND BY PRODUCT & REGION

        2. 5.4.1 Drill Bits

          $130.00

          1. Table | DRILL BIT DEMAND BY PRODUCT & REGION

        3. 5.4.2 Downhole Tools

          $181.00

          1. Table | DOWNHOLE TOOL DEMAND BY PRODUCT & REGION

        4. 5.4.3 Other Equipment & Consumables

          $93.00

          1. Table | OTHER EQUIPMENT & CONSUMABLES DEMAND BY REGION

        5. 5.4.4 Market Share

          $92.00

          1. CHART IV-4 DRILLING EQUIPMENT & CONSUMABLES MARKET SHARE, 2014

      5. 5.5 Drilling Fluids

        $674.00

        1. 5.5.1 General

          $82.00

          1. Table | DRILLING FLUIDS DEMAND

        2. 5.5.2 Product Characteristics

          $83.00

          1. Table | SELECTED DRILLING FLUID ADDITIVES

        3. 5.5.3 Demand by Type

          $229.00

          1. Table | DRILLING FLUIDS DEMAND BY TYPE

        4. 5.5.4 Demand by Location

          $148.00

          1. Table | DRILLING FLUIDS DEMAND BY LOCATION

        5. 5.5.5 Demand by Region

          $82.00

          1. Table | DRILLING FLUIDS DEMAND BY REGION

        6. 5.5.6 Market Share

          $82.00

          1. CHART IV-5 DRILLING FLUID MARKET SHARE, 2014

    6. 6 REGIONAL MARKETS

      $1,497.00

      1. 6.1 General

        $85.00

        1. Table | US OIL & GAS PRODUCING REGIONS

      2. 6.2 Drilling Activity by Region

        $131.00

        1. Table | DRILLING ACTIVITY BY RESOURCE, REGION, &LOCATION

      3. 6.3 Drilling Products & Services Demand by Location

        $211.00

        1. Table | DRILLING PRODUCTS & SERVICES DEMAND BY LOCATION

        2. 6.3.1 Onshore

          $82.00

        3. 6.3.2 Offshore

          $82.00

        4. 6.3.3 Deepwater

          $82.00

      4. 6.4 Drilling Products & Services Regional Overview

        $1,070.00

        1. Table | DRILLING PRODUCTS & SERVICES DEMAND BY REGION

        2. 6.4.1 Southern Region

          $269.00

          1. Table | SOUTHERN REGION DRILLING INDICATORS

          2. Table | SOUTHERN REGION DRILLING PRODUCTS & SERVICES DEMAND

        3. 6.4.2 Midwestern Region

          $241.00

          1. Table | MIDWESTERN REGION DRILLING INDICATORS

          2. Table | MIDWESTERN REGION DRILLING PRODUCTS & SERVICES DEMAND

        4. 6.4.3 Western Region

          $278.00

          1. Table | WESTERN REGION DRILLING INDICATORS

          2. Table | WESTERN REGION DRILLING PRODUCTS & SERVICES DEMAND

        5. 6.4.4 Eastern Region

          $208.00

          1. Table | EASTERN REGION DRILLING INDICATORS

          2. Table | EASTERN REGION DRILLING PRODUCTS & SERVICES DEMAND

    7. 7 INDUSTRY STRUCTURE

      $5,333.00

      1. 7.1 General

        $119.00

        1. Table | US DRILLING PRODUCTS & SERVICES SALES BY COMPANY, 2014

      2. 7.2 Market Share

        $232.00

        1. CHART VI-1 US DRILLING PRODUCTS & SERVICES MARKET SHARE, 2014

      3. 7.3 Industry Restructuring

        $161.00

        1. Table | SELECTED ACQUISITIONS & DIVESTITURES

      4. 7.4 Research & Development

        $98.00

        1. Table | RESEARCH & DEVELOPMENT EXPENDITURES FOR SELECTED DRILLING PRODUCT & SERVICE FIRMS

      5. 7.5 Marketing & Distribution

        $107.00

      6. 7.6 Competitive Strategies

        $159.00

        1. Table | SELECTED COOPERATIVE AGREEMENTS

      7. 7.7 Company Profiles

        $5,333.00

        1. 7.7.1 Aker Solutions ASA

          $175.00

        2. 7.7.2 Atlas Copco AB

          $108.00

        3. 7.7.3 AXON Energy Products Incorporated

          $122.00

        4. 7.7.4 Baker Hughes Incorporated

          $419.00

        5. 7.7.5 Cameron International Corporation

          $297.00

        6. 7.7.6 Ensco plc

          $82.00

        7. 7.7.7 Frank's International NV

          $107.00

        8. 7.7.8 General Electric Company

          $168.00

        9. 7.7.9 GEO Drilling Fluids Incorporated

          $92.00

        10. 7.7.10 Halliburton Company

          $323.00

        11. 7.7.11 Helmerich & Payne Incorporated

          $134.00

        12. 7.7.12 Lafarge SA

          $111.00

        13. 7.7.13 Loews Corporation

          $121.00

        14. 7.7.14 Nabors Industries Limited

          $253.00

        15. 7.7.15 National Oilwell Varco Incorporated

          $781.00

        16. 7.7.16 Newpark Resources Incorporated

          $193.00

        17. 7.7.17 OAO TMK

          $100.00

        18. 7.7.18 Parker Drilling Company

          $118.00

        19. 7.7.19 Patterson-UTI Energy Incorporated

          $82.00

        20. 7.7.20 Precision Drilling Corporation

          $101.00

        21. 7.7.21 Rowan Companies plc

          $97.00

        22. 7.7.22 Sandvik AB

          $82.00

        23. 7.7.23 Schlumberger Limited

          $668.00

        24. 7.7.24 Schoeller-Bleckmann Oilfield Equipment AG

          $167.00

        25. 7.7.25 Seadrill Limited

          $82.00

        26. 7.7.26 Southwest Oilfield Products Incorporated

          $82.00

        27. 7.7.27 Superior Energy Services Incorporated

          $101.00

        28. 7.7.28 Technip SA

          $135.00

        29. 7.7.29 Tenaris SA

          $161.00

        30. 7.7.30 Transocean Limited

          $90.00

        31. 7.7.31 United States Steel Corporation

          $144.00

        32. 7.7.32 Vallourec SA

          $224.00

        33. 7.7.33 Weatherford International plc

          $268.00

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