REPORT HIGHLIGHT

The global Geo-Steering market was valued at $ 15 billion in 2019. This market is projected to reach $ 27.91 billion in 2027 with a CAGR of 11.8%.

Geo-Steering provides an advanced level of directional control for petroleum drilling. It uses electronic real-time data logs to analyze drilling conditions. The main objective of the Geo-Steering concept is to keep the wellbore within the hydrocarbon zone to achieve maximum drilling efficiency. This efficiency only became practically possible with innovation in microwave tools in the early 1990s. Other modes of software innovation enabled the whole operation with tool stability and longer tool life.

Market Dynamics

Increasing population growth across the regions and migration towards cities has increased oil demanded by major transportation industries. This has led to an increase in drilling and oil exploration across the globe. Because of the overexploitation of natural resources, the average depth of drilling has increased. Hence there has been a requirement to maintain the operational efficiency of drilling and extract more oil out of one drill. Geo-Steering technology provides precise drilling mechanisms while maintaining the current operational efficiency. North America has held the dominant position in the Geo-Steering market. It is also expected to hold a dominant position with engineering and technological developments in this field. Asia Pacific market is anticipated to grow at 10.3% during the forecast period of 2019-2027.

The global population boom in the 20th century is driving demand growth of petroleum products. For instance, the Organization of Petroleum Exporting Countries had a demand of 97.32 million barrels per day against daily production of 96 million barrels in 2019. This supply-demand gap led to increasing investments in new drilling projects and technological development to increase drilling efficiency. In August 2019, Exxon Mobil declared field discovery in Guyana, South Africa. In 2019, 58,294 oil drilling projects took place as per World Oil data.

Regulatory policies and environmental movements are major factors hampering market growth up to a certain extent. Increasing drilling powered by strong demand led to rampant drilling activities in some areas. These activities raised concern about environmental effects and impact on the health of local communities. Improper waste management practices and oil leakages are major concerns. As a result of this, government organizations focused on policy implementation to reduce the environmental impact of economic activities. For instance, Environmental Policy Agency presented pollution standards to be followed by drilling companies to reduce emissions from the oil and gas industry.

Product Takeaway

Based on product types the global geo-steering market is bifurcated into 4 major segments, which are logging while drilling (LWD), measurement while drilling (MWD), rotary steerable drilling (RSS), and drive systems. Tool manufacturers in the market are focusing on the development of new tools as per drilling needs and improving the performance of existing tools by enabling them through software assistance for better control. LWD is a system that provides real-time drilling data at the time of operation. It ensures precise surface measurement which is difficult with traditional wired tools. This data can be helpful for timely decision-making and better well placements. It is a widely used drilling method as per current industrial trends.

Application Takeaway

Based on applications the global geosteering market is bifurcated into, petroleum development and natural gas transportation as major 2 segments. Geo-Steering technology is used by oil and gas companies to improve their drilling efficiencies and drilling output with efficient resource use. This is helpful for better well placement and cost reduction in the whole process. Application-based markets are major factors for growth in the Geo-Steering market as demand for fuel and gas is rising constantly. Geo-Steering can help address the problem of deep and thin reservoir drilling and unstable margin structures. It is also used to maintain drills at particular reservoir height to reduce water breakthrough in-process and maintain economic productivity. 

Regional Takeaway

The United States is the largest user o Geo-Steering technology in its oil & gas industry. With the boom in shale fields, many of the onshore basins such as Permian have contributed to the advancement of the Geo-Steering service market. For Instance, oil production in the country grown to 12.7 million barrels per day in Q1 of 2020 after recent deep because of the COVID-19 pandemic. The US Interior department allowed drilling exploration in US waters which is among the largest expansion in offshore oil exploration leased by the government. This development is expected to contribute significantly to the US Geo-Steering market.

Other major markets are APAC, Middle East & Africa & South America. Asia Pacific is anticipated to grow with the highest CAGR because of the increasing demand for adaptive technologies in Oil& Gas exploration. Increasing demand for RSS (rotary steerable) by these companies is expected to propel the market in this region. Emerging markets like Africa are responding to increasing demand and new opportunities in technological space. The Middle East with the world’s largest oil reservation fields is an attractive region for companies engaged in E&P technology developments. With technology-enabled infrastructure and competency-led teamwork by different stakeholders, wide expansion of drilling operations in the remote location of Africa and South America has opened up new oil production capabilities.

COVID-19 Impact

The COVID-19 pandemic had a tremendous effect across various businesses and got disturbances in the stock of crude materials just as completed products. To win the fight against the COVID-19 pandemic circumstance administrations of various nations have forced total lockdown and incomplete lockdown in their nations attributable to which there is a stop in the assembling areas and severely hit the economy of the country. Compared to other industries, Oil & Gas industry was impacted heavily given that the global supply chain was broken with regional spread containment measures and lukewarm demand due to restricted traveling and stagnated airlines across the globe. Even after early containment in regions of North America & Europe, spread in the Asia Pacific impacted oil & gas demand which holdback early recovery. These directly impacted drilling activities which significantly impacted supporting services like Geo-Steering technologies. The Geo-Steering market faced a significant decline in global demand compared to previous years. However, demand was stable after the continuation of economic activities in several parts of the world.  The global Geo-Steering market is expected to deliver expected growth during the forecast period after a short slowdown.

Key Vendor Takeaway

Major players in the Geo-Steering market are focusing on marketing initiatives, acquisitions, and strategic collaboration to maintain their positions in the global market. Major companies engaged in Geo-Steering are Cougar Drilling Inc., Emerson Paradigm Holdings, Exlog, Geonaft, Geotech Logging Services, Halliburton Energy Services, ROGII, Schlumberger, Terracosm Software, HMG Software, Petrolink, United il & Gas, Maxwell Dynamics, Horizontal Solutions International, and Baker Hughes Company.

In 2020, Emerson Paradigm Holding released Paradigm 19 software suitable for all of its exploration & production (E&P) needs. The main benefits of these types of technical assistance are increased workflow efficiency and reduce uncertainty. Due to the complexity of the whole process and core competencies of all companies in different services, strategic collaboration is a widely observed trend in the Geo-Steering domain. For instance, Shell even after being at forefront of oil E&P, undertook many effective collaborations since 2019 to improve its reach and productivity.

The market size and forecast for each segment and sub-segments has been considered as below:

• Historical Year – 2016 to 2018
• Base Year – 2019
• Estimated Year – 2020
• Projected Year – 2021 to 2027

SCOPE OF THE REPORT

The scope of this report covers the market by its major segments, which include as follows:

GLOBAL GEO-STEERING MARKET KEY PLAYERS

• Cougar Drilling Inc.
• Emerson Paradigm Holdings
• Exlog
• Geonaft
• Geotech Logging Services
• Halliburton Energy Services
• ROGII
• Schlumberger
• Terracosm Software
• HMG Software
• Petrolink
• United Oil & Gas
• Maxwell Dynamics
• Horizontal Solutions International
• Baker Hughes Company

GLOBAL GEO-STEERING MARKET, PRODUCT

• Logging while drilling (LWD)
• Measurement while drilling (MWD)
• Rotary steerable drilling (RSS)
• Drive systems

GLOBAL GEO-STEERING MARKET, BY APPLICATION

• Petroleum Development
• Natural Gas Transportation

GLOBAL GEO-STEERING MARKET, BY REGION

• North America
  • The U.S.
  • Canada
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • the United Kingdom
  • Rest of Europe
• Asia Pacific
  • India
  • China
  • South Korea
  • Japan
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of LATAM
• The Middle East and Africa
  • Saudi Arabia
  • the United Arab Emirates
  • Rest of MEA