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In the oil and gas industry, drill bit is used as component to produce cylindrical hole in earth's crust for the discovery and extraction of crude oil and natural gas. This type of tool is mainly used IN rotary drilling method to produce hole in oil and gas field. Prime objective for using this type of tool is to maximize the rate of penetration of the formation and ensuring longer service life of the formation produced through drilling. Drilling bit offers benefits such as precision in drilling, ease in drilling process, and enhancement of the service life of the hole. The oil and gas drill bit market has been segmented on the basis of product, end user, and region.
On the basis of product, the oil and gas drill bit market has been segmented into roller-cone, polycrystalline diamond cutters (PDC), diamond-impregnated drill bit, fixed cutter, and others. As compared to other products, demand for roller cone type is significantly high owing to multiple benefits it offers such as low lifecycle cost, less complex working procedure, and ease drilling conventional formations. Based on design, roller-cone is further categorized into tungsten carbide inserts and milled-tooth bit. Tungsten carbide inserts design is developed for cutting relatively hard rocks which cannot be drilled by using general roller-cone component.
On the basis of end user, the oil and gas drill bit market has been segmented into oil well and gas well. Penetration of specific drilling bit type depends on topography and geology of the oil and gas well. In many circumstances, it has been found that performance of the drill bit varies significantly with change in end user. For example, a specific type of drilling bit might be considered as suitable for oil well but the same drilling bit might fail to provide desired performance for gas well.
Major factors driving the global oil and gas drill bit market are growth in shale gas exploration activities across the globe and rising demand for customized drilling bits that can handle unconventional rock formation. These drill bits are widely used during shale gas exploration. With the increase of shale gas exploration, demand for these drill bits have also increased. According to data published by U.S. Energy Information Administration, natural gas production globally is projected to increase from 342 billion cubic feet per day (Bcf/d) in 2015 to 554 Bcf/d by 2040. Such huge growth in natural gas production is expected to provide demand side drive for the oil and gas drill bit market.
Rising demand for unconventional energy such as solar, wind, and hydro has negatively affected the demand for petroleum market. Slowdown of oil sector is identified restraining factor for the oil and gas drill bit market. For example, according to data published by U.S. Energy Information Administration, during the period 2015 to 2016, crude oil production in the U.S. had declined significantly. Drill bits are used during oil exploration and sharp decline in oil production in major economies has negatively affected the demand for these drill bits.
Shale gas exploration is still in the evolution phase in Europe and in coming years rapid boom in shale gas exploration is expected in countries from this region. Such boom in shale gas exploration is expected to provide opportunity for the oil and gas drill bit market during the forecast period.
Insights by geography
Based on geography, the oil and gas drill bit market has been segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America. On the basis of both value and volume, North America held the largest share in the market in 2017. High volume reserve of natural gas and crude oil in different regions of North America has promoted the rapid growth of drilling activities across oil and gas fields in recent years. Such increase in drilling activity has automatically created demand for drilling bits in across oil and gas companies, which in turn driving the growth of the North American oil and gas drill bit market.
Some of the major players operating in the global oil and gas drill bit market are Schlumberger Limited, Atlas Copco, Baker Hughes, a GE company, National Oilwell Varco, Halliburton, Torquato Drilling Accessories, Inc., Kingdream Public Limited Company, and Bulroc (UK) Ltd.