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Oil Field Drill Bits Market revenue to cross USD 27 Billion

July 26, 2023 06:00 ET | Source: Research Nester Research Nester

New York, New York, UNITED STATES Tricone Bits IADC114

Oil Field Drill Bits Market revenue to cross USD 27 Billion

New York, July 26, 2023 (GLOBE NEWSWIRE) -- The global oil field drill bits market size is predicted to expand at ~6% CAGR between 2023 and 2035. The market is projected to garner a revenue of USD 27 billion by the end of 2035, up from a revenue of ~USD 15 billion in the year 2022.  The growth of the market is set to be dominated by growth in the need for energy. A total of 580 million terajoules of energy are utilized worldwide each year. This is comparable to 13865 million tonnes of oil or 580 million trillion joules. (mtoe). Hence, oil is used to produce electricity. In fossil fuel power plants, coal or oil undergo combustion to produce heat, which is then converted into steam to power turbines that produce electricity.

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Moreover, it was projected that by 2022, there will be approximately 774 million people without access to power worldwide, an increase of nearly 19 million. However, most of them are situated in rural areas. Hence, large number of people in this region depend on generators for electricity. This generator operates on oil and therefore the demand for oil from this region is set to grow. As a result, there is projected to have great market expansion owing to this factor.

Oil Field Drill Bits Market: Key Takeaways 

Surge in Demand for LNG to Boost the Growth of the Global Oil Field Drill Bits Market

With the growing emission from fossil fuel, the preference for liquefied natural gas (LNG) is growing. LNG emits about 39% less CO2 than coal and approximately 29% fewer greenhouse gases than oil, making it the most environmentally friendly fossil fuel. Natural gas and LNG have long been hailed as leading candidates in the energy shift to renewable sources of power in comparison to other fossil fuels. Further, their utilization is growing in various applications such as for the commercial sector in order to heat, generate electricity, produce goods such as fertilizers, paints, and medicines, as well as occasionally refuel commercial vehicles. Moreover, they are also used in residential applications for cooking, generating energy, and heating homes. Therefore, the demand for oil field drills is set to increase since it is required to extract natural gas which is further converted into LNG. 

Oil Field Drill Bits Market: Regional Overview

The global oil field drill bits market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa region.

Rising Consumption of Oil for Motor Vehicles to Boost the Growth of the Market in North America

The market for oil field drill bits in North America is set to have the highest growth with a share of 30 % by the end of 2035. North America has the highest consumption of oil for motor vehicles. The average daily oil consumption in the US is about 19 million barrels. Approximately 8 million barrels, or about 39% of that amount, are utilized to fuel automobiles. The total quantity of oil utilized by Americans to power their motor cars surpasses that of Russia, Canada, the United Kingdom, and France combined. Although it only makes up about 4% of the world's population, the U.S. utilizes a quarter of all the oil. Additionally, the government in North America is focusing more on exploring oil fields in its own region instead of importing oil in order to lower the price of oil. Hence, these factors are anticipated to boost the market growth in this region.

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Surge in Underwater Oil Exploration to Influence the Growth of the Market in Asia Pacific

The market in Asia Pacific for oil field drilling is also set to have noteworthy growth over the forecast period. This could be owing to growing underwater oil exploration in this region. The need for energy in this region is growing rigorously with the growing population. Also, the export of oil from the Asia Pacific is also on the surge. For instance, the Asia Pacific region consists of 60 % of the global population, accounting for more than 4 billion people. Hence, the need to explore oil is growing. Also, it is stated that a large number of reservoirs are yet explored in deep seas whereas the reservoirs in shallow water and onshore reservoirs are depleting. Hence, in order to satisfy the global demand, the demand for oil field drill bits is growing.

Oil Field Drill Bits, Segmentation by Application

The onshore drilling segment is set to generate the highest revenue by the end of 2035. This growth of the segment could be attributed to growing onshore drilling. The vast majority of oil rigs are situated on land. There were a total of about 1,531 operational onshore oil rigs at the end of 2022 compared to approximately 230 offshore rigs around the world. Oil demand rose once more in 2021 as a result of the recovery from the economic depression caused by the coronavirus outbreak. Meanwhile, the decrease in offshore rigs is mostly brought on by a decrease in North Sea proved reserves. Moreover, offshore drilling offers certain economic advantages, however, the reality is that it may take decades to actually set up a drilling station in the deepest part of the ocean. Facilities budgets are severely impacted by this alone. However, onshore drilling makes use of locally available shales as well as additional assets which render drilling sites flexible and mobile, such as skids, making it simple to move equipment from one location to another. This reduces the installation and transportation expenses that might have been significantly greater for an offshore project. Hence, the demand for onshore drilling is more.

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Oil Field Drill Bits, Segmentation by Types

The roller cone cutter bits segment is also set to have notable growth over the forecast period. The major factor influencing the growth of the segment is rising coal production. Global coal production was anticipated to increase in 2022, with contributions from nations including South Africa, India, and China likely to increase by about 8%. Extraction of coal often results in safety incidents. In most CBM wells, the first opening is drilled using roller cone bits, whereas the second opening is drilled pneumatically using DTH hammers. Due to the gas outlet well's huge diameter and certain criteria regarding the hole's verticality. As a result, the initial pilot holes are typically drilled using the three roller bits, and the well is then enlarged using roller cone drills.

A few of the well-known market leaders in the global oil field drill bits market that are profiled by Research Nester are Schlumberger, International Diamond Services, Baker Hughes Company, Atlas Copco AB, Tercel Oilfield Products Ltd, D-Drill (Master Drillers) Limited, Utterra, NOV, Inc., Halliburton Energy Services, Inc., Varel Energy Solutions, and others.

Recent Development in the Market 

Oil Field Drill Bits Market revenue to cross USD 27 Billion

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