Underbalanced Drilling Service Market Size, Share & Industry Analysis, By Drilling Fluid ( Gaseous (Compressible), Two-Phase, Liquid (Incompressible) ), By Application ( Onshore, Offshore ) and regional Forecast, 2024-2032

The ever-growing demand for hydrocarbon made to think operators for innovative technologies in recovering oil and gas. Underbalanced drilling is one such technology used by several oilfield service companies to save millions of dollars by increasing the retrieval of oil within a short time. In contrast, conventional drilling method frequently causes fluid invasion, which may damage the formation though it is the safest method for drilling a well but may cause severe damage to formation and increase the cost of production. The underbalanced drilling method used to drill a well with a wellbore fluid gradient less than natural formation gradient. This technique is widely recognized for minimizing the damage caused by the invasion of fluid in the formation. There multiple benefits due to the use of underbalanced drillings, such as increased bit life, reduced drilling time, and early detection and dynamic testing of productive intervals while drilling. Hence, an underbalanced drilling service may exhibit robust growth in forthcoming years.

The underbalanced drilling service market is segmented into drilling fluid and application. Drilling fluid is further classified into gaseous (compressible), two-phase, and liquid (incompressible). Gaseous (compressible) is one of the oldest techniques that use dry air drilling. It has several advantages such as increased penetration rate over other drilling fluids and extended bit life since the compressed air cools the bit. Two-phase drilling fluid consists of foam type fluid or aerated drilling mud. Liquids are mixed with gas to achieve the required circulating fluid density. The technology is majorly used in onshore and offshore. Onshore segment exhibit strong growth due to substantial investment by major conglomerate companies. However, the offshore segment shows rapid growth in the forthcoming years owing to the high potential of discovering hydrocarbon deposits.

The enormous demand for hydrocarbon, coupled with the expansion of industries and growing urbanization, may fuel the growth of the underbalanced drilling service. The significant formation of damage is avoided that may reduce the drilling time and increase the bit of life, which drives the market.

The high risk associated with well due to the use of underbalanced drilling technique i.e. blowout which causes severe damage that may hinder the market. The technology is still expensive and complicated that may restrain the market.  

Key Market Driver -

Tremedous demand for oil and gas

Key Market Restraint -

High risk of blowout, fire and exploration  

Key Players Covered:

• The major companies for the underbalanced drilling service market are Reform Energy Services, Weatherford, Halliburton, International Snubbing Services, Air Drilling Associates, Strata Energy Services Inc., Blade Energy Partners, Ltd., Viking Services, Hurricane Air Drilling Services Ltd Co., and Precision Air Drilling Services.

Regional Analysis:

The global underbalanced drilling service market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Underbalanced drilling has proven the ability for reduced formation damage in horizontal wells that driving its demand in the United States. The rising investment in E&P activities and increasing concern over damaged formation may fuel the market. Underbalanced drilling is gaining acceptance in European countries owing to its advantages. Germany, UK, and Russia, among others, are adopting this technology to increase the production of oil and gas. China, India, Japan, and Indonesia, among others, are extensively investing in the exploration and production of hydrocarbon to meet the rising demand. Several oilfield service companies are inclined towards cost-effective drilling technology to reduce the production cost that may underpin the market. Middle East and Africa may exhibit positive growth owing to consistent investment in exploration activities. UAE, Saudi Arabia, Iran, and Iraq, among others, are playing a crucial role in uplifting the growth of the underbalanced drilling service market.

To gain extensive insights into the market, Request for Customization

Segmentation

Key Industry Developments

• In June 2019, Weatherford International recently unveiled Victus intelligent MPD, and industry 4.0 solution with advanced technology. The Victus is capable of delivering cost-effective drilling solutions to operators with high-level safety.


• In February 2019, Weir Oil & Gas secured a contract from Expro to provide repair services for the PowerChokes product range. Expro manufactures advanced chokes and control consoles that used in underbalanced and managed pressure drilling. The cooperation will strengthen the portfolio of both the companies to provide a comprehensive drilling solution to its consumer.


• In May 2014, ONGC turned out to be the first company in India to implement an underbalanced drilling pilot project in the Heera and Mumbai High Fields.