Drill Collar Market Size, Share, and Industry Analysis By Type (Slick Drill Collar, Spiral Drill Collar, and Non-magnetic Drill Collar), By Deployment (Onshore and Offshore), and Regional Forecast, 2024-2032

Drill collars are thick-walled cylindrical pieces machined from a solid steel rod, usually plain carbon steel, but sometimes non-magnetic nickel-copper alloy or other non-magnetic high-grade alloys. Steel rods are drilled end-to-end for a pass-through to pump drilling fluids through the collar. The outside diameter of the steel bars can be slightly machined for roundness and, in some cases, machined with spiral grooves (threaded collar). A drill collar is also known as a shaft collar and is an important component of many application tools. The cage puts more weight on the collar and less weight is measured on the hanging surface. Drilling applications are often gearboxes and engines. Drill collars are used to align mechanical barriers, bearing surfaces, and parts.

• The U.S., being the market leader in drill collars, has a huge flow of investment in the country. Exxon Mobil and oil pioneer Natural Resources signed a USD 60 billion deal in October 2023 under the pretext of an increase in oil exploration. Domestic oil production reached an all-time high last week, marking a full recovery from the COVID-19 pandemic after drilling fell more than 25% between the pre-COVID high and low in early 2021. This endowed the drill collars market in several ways.

Further, factors such as increased exploration activities and emphasis on evolving new oil and gas fields are expected to boost the drill collar market. However, the volatility of oil prices in recent years  led to a decline in exploration activity, which slowed the market for drill collars. Drill collars are usually made of thick-walled carbon steel but can also be made of non-magnetic copper, steel, or other alloys. For example, a 10,000-foot drill string may consist of 9,000 feet of drill bit and only 500 feet of drill collars. Like the drill pipes, the drill collars are 31 feet long and bolted vertically to the rig. In contrast, when drilling pipes, drill collars are thick-walled and heavy, and their flexibility is very limited.

The COVID-19 pandemic has had a major impact on the global drill collar market. Due to the pandemic, the market demand decreased owing to disruption in global trade. In 2020, the market was seriously affected by the reduction of capital investments and the limitation of undertakings in the oil and gas sector. In addition, the pandemic also caused delays in the delivery of products as shipping and other transport services stopped in some countries.

KEY INSIGHTS

The report covers the following key insights:

• Recent Advancements in the Drill Collars Market


• Key Industry Trends


• Regulatory Landscape for the Drill Collars Market


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Market

SEGMENTATION

ANALYSIS BY TYPE

Based on type, the market is segmented into slick drill collars, spiral drill collars, and non-magnetic drill collars.

The slick drill collar segment is anticipated to dominate the drill collar market. These are usually utilized in drilling operations. They are crafted from high-energy alloy metallic and offer the essential weight on bit (WOB) throughout drilling. In general, well-known metallic drill collars have historically been more customary in the market due to their full-size use and availability.

Spiral drill collars are used to reduce the contact area with the hole to prevent the bit from effectively sticking in the pressure gap. The materials of non-magnetic drill collars are made of low-carbon chromium-manganese austenite alloy. The chemical composition must be strictly controlled in the refining and forging process of a non-magnetic drill collar with excellent inferior magnetic permeability, high mechanical inherent strength, and excellent stress resistance to corrosion cracking and does not tend to brown.

ANALYSIS BY DEPLOYMENT

The onshore segment is estimated to dominate the market share. Shallow drilling includes all onshore drilling sites and accounts for 70% of the world's oil production, according to the National Geographic Society. The demand for oil and gas has always increased and this has led to an increase in drilling activity across the globe to find new deposits. This, in turn, has led to an increase in the demand for drill collars. On offshore platform decks, the drill collar must be handled by a crane and it has been reported that such drill collars often accidentally fall into the deck slab.

REGIONAL ANALYSIS

The drill collar market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America is dominant in the drill collars market due to the latest oil & gas exploration in the region. Investigation in the Gulf of Mexico is also growing in the oil sector, adding to the region's drill collar market.

The increase in drilling activity due to increasing energy demand in Latin America is expected to drive market growth in the region. Extensive oil exploration in Saudi Arabia, Qatar, and the United Arab Emirates is projected to have a positive impact on the Middle East drill collar market.

Growing economies in the Asia Pacific region are also generating opportunities for market players in the region. Shale gas exploration in China is expected to be a key factor driving the Asia Pacific market growth.

With the expansion of exploration activities for oil and gas reserves, the number of new oil wells has increased, which in turn increases the demand for drill collars in Europe. Overall, oil and gas investments and oil shale development will boost the growth of the European drill collar market.

KEY PLAYERS COVERED

The report includes the profiles of key players such as Hunting PLC, National Oilwell Varco Inc. (NOV), Texas Steel Conversion Inc. (TSC), China Vigor Drilling Oil Tools and Equipment Co. Ltd, Challenger International Inc., International Drilling Services Ltd (IDS), Workstrings International, and Schlumberger.

• In February 2022, Schlumberger announced the introduction of the GeoSphere 360* 3D reservoir mapping and drilling service at the International Petroleum Technology Conference (IPTC). The service uses advanced cloud and digital solutions to provide a real-time 3D profile of container objects with drilling techniques used in reservoirs. It improves reservoir understanding and well placement to maximize performance from complex reservoirs.