Market Size of North America Drilling Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 2.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Drilling Market Analysis
The North America Drilling market is expected to register a CAGR of more than 2% during the forecast period of 2022-2027. Due to the COVID-19 pandemic, the market was adversely affected as crude oil prices decreased all across the globe, which put a pause on exploration and production activities. However, the North America drilling market witnessed rapid growth after the pandemic as crude oil demand increased to pre-pandemic levels coupled with the ongoing war between Ukraine and Russia, which has globally increased crude oil prices, promoting exploration and production activities. Although, one of the major restraints to the market is the growing adoption of renewable energy and electric vehicles in the region.
- The United States is going to dominate the market as the country has the largest proven reserves for oil and gas coupled with government support to promote the production of oil and gas.
- The deepwater and ultra-deepwater segment is expected to witness significant development due to the increasing technological innovation and the rising viability of such operations.
- Offshore is going to dominate the market as onshore reserves are exhausted in the region, and only offshore wells provide viable profitability.
North America Drilling Industry Segmentation
The North America Drilling Market report includes:
| Application | |
| Institutional Sites | |
| Commercial Facilities | |
| Remote Off-grid Communities | |
| Other Applications |
| Type | |
| Custom Microgrid | |
| Remote Power Systems | |
| Other Types |
North America Drilling Market Size Summary
The North America drilling market is poised for growth, driven by a resurgence in crude oil demand and geopolitical factors such as the Ukraine-Russia conflict, which have elevated global oil prices. The market experienced a downturn during the COVID-19 pandemic due to decreased oil prices, but has since rebounded as demand returned to pre-pandemic levels. The United States is expected to lead the market, benefiting from its substantial proven oil and gas reserves and supportive government policies. The offshore drilling segment, particularly in the Gulf of Mexico and offshore Alaska, is anticipated to dominate due to the exhaustion of onshore reserves and the increasing viability of deepwater operations. Technological advancements and incentives for shallow-water drilling have further bolstered investment in these areas.
The market landscape in North America is moderately consolidated, with major players like Schlumberger Limited, Baker Hughes Company, Chevron, ConocoPhillips, and Halliburton Company driving activities. The Gulf of Mexico remains a focal point for offshore drilling, contributing significantly to the US's hydrocarbon production. Despite challenges such as the cancellation of offshore lease sales by a US judge, the region continues to attract investment through initiatives like reduced royalty rates. In Canada, government approvals for offshore drilling projects, including the Bay du Nord project, highlight ongoing efforts to expand oil and gas production capabilities. Overall, the combination of rising oil prices, technological innovations, and government support is expected to sustain the growth of the North America drilling market.
North America Drilling Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast, in USD billion, till 2027
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1.3 Recent Trends and Developments
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1.4 Government Policies and Regulations
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1.5 Market Dynamics
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1.5.1 Drivers
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1.5.2 Restraints
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1.6 Supply Chain Analysis
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1.7 Industry Attractiveness - Porter's Five Force Analysis
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1.7.1 Bargaining Power of Suppliers
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1.7.2 Bargaining Power of Consumers
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1.7.3 Threat of New Entrants
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1.7.4 Threat of Substitutes Products and Services
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1.7.5 Intensity of Competitive Rivalry
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1.8 Assessment of COVID-19 Impact on the Industry
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2. MARKET SEGMENTATION
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2.1 Application
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2.1.1 Institutional Sites
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2.1.2 Commercial Facilities
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2.1.3 Remote Off-grid Communities
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2.1.4 Other Applications
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2.2 Type
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2.2.1 Custom Microgrid
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2.2.2 Remote Power Systems
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2.2.3 Other Types
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North America Drilling Market Size FAQs
What is the current North America Drilling Market size?
The North America Drilling Market is projected to register a CAGR of greater than 2% during the forecast period (2024-2029)
Who are the key players in North America Drilling Market?
Schlumberger Limited, Baker Hughes Company, Chevron Corporation, ConocoPhillips and Halliburton Company are the major companies operating in the North America Drilling Market.
