The geosteering technology market in APAC is expected to grow from US$ 2,766.90 million in 2019 to US$ 5,610.51 million by 2027; it is estimated to grow at a CAGR of 13.3% from 2020 to 2027.
Surge in production of shale and resulting hike in horizontal and unconventional drilling is expected to escalate the APAC geosteering technology market. Via a horizontal drilling and hydraulic fracturing process in which water, sand, and chemical additives are pumped under high pressure to preserve and create cracks in underground rocks, both shale oil and shale gas are hydrocarbon resources extracted from shale formations that lie below the earth's surface. They are called as unconventional hydrocarbon resources. The geosteering technology helps in optimizing the position of a horizontal wellbore within the reservoir at different spots. Exploration and production (E&P) technologies related to communication of vital data in real-time through the Internet, advanced and accurate directional drilling, as well as reduced cycle time associated with forward-looking 3D geo-modeling and visualization technologies, are currently converging. Growing willingness to minimize or eliminate the associated costs is responsible for advancing the horizontal well-geosteering process by integrating the measurement-while-drilling (MWD) instrument into conventional drilling practices. Thus, surge in production of shale and resulting hike in horizontal and unconventional drilling are expected to increase the demand for geosteering technology due to its advantage such as position optimization, accurate directional drilling, and reduced cycle time. This, in turn, is likely to drive the APAC geosteering technology market. The escalating demand for precise real-time information to achieve maximum production is among the other factors expected to positively influence the demand for geosteering technology in APAC, which will drive the APAC geosteering technology market.
Moreover, APAC is highly affected due to the COVID-19 outbreak, especially China and India. The APAC region constitutes the world’s two most populated countries as well as prominent oil producing countries across the APAC region. China virtually imposed strict lockdown and social isolation, which stopped manufacturing activities which resulted in shrinking its country’s demand for oil and other energy commodities which has affected the APAC geosteering technology market negatively. Thus, the drilling activities across China plummeted significantly and resulted in weak demand for geosteering services. Similarly, India also imposed a nationwide lockdown to control the growing number of COVID-19 cases. Subsequently, the lockdown and disruption of various manufacturing activities contributed significantly in reduced drilling activities in oil & gas sector which has affected the geosteering technology market in India negatively. Thus, the overall decline of activities in oil & gas industries collectively reduced the demand for geosteering technologies across the APAC countries during the early months of the 2020 due to the outbreak of virus in respective countries hence affecting the APAC geosteering technology market. The impact of COVID-19 outbreak is anticipated to be quite severe in 2020 and it is likely to continue in 2021 as well. Hence, the ongoing COVID-19 crisis is likely to impact the growth of the APAC geosteering technology market for the next few quarters.
Based on product, the logging while drilling (LWD) segment led the APAC geosteering technology market in 2019. LWD is an oilfield approach for providing drill string instruments that assist in transmitting information about real-time formation which is driving the growth of APAC geosteering technology market. LWD deals with geological formation measurements made during drilling, and works with measurement-while-drilling system to share measurement results to the surface. LWD ensures the subsurface measurement in conditions where wellbores are difficult to measure using traditional wireline tools hence driving the. APAC geosteering technology market. Formation evaluation data collection by using LWD method helps the user’s greater visibility to the reservoir and helps in timely decision making and accurate well-placement which is driving the APAC geosteering technology market growth. The companies operating in the APAC geosteering technology market on offering advanced LWD technology services and solutions to achieve a strong market position and attract more customers. Advantages of LWD, such as accuracy and less drilling risk and real time information, are expected to increase its demand in coming years, thereby driving the APAC geosteering technology market.
The overall APAC geosteering technology market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the APAC geosteering technology market. The process also serves the purpose of obtaining overview and forecast for the APAC geosteering technology market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants who typically take part in such a process include industry experts, such as VPs, business development managers, geosteering technology market intelligence managers, and national sales managers, along with external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the APAC geosteering technology market. Cougar Drilling Solution Inc.; Emerson Paradigm Holding LLC; Exlog; Geonaft; Halliburton Energy Services, Inc.; ROGII Inc.; and Schlumberger Limited are among the key players operating in the APAC geosteering technology market.