The geosteering technology market in Europe is expected to grow from US$ 4,190.86 million in 2019 to US$ 7,620.25 million by 2027; it is estimated to grow at a CAGR of 11.7% from 2020 to 2027.
Surge in demand for precise real-time information to achieve maximum production is expected to escalate the Europe geosteering technology market. Geosteering technologies are widely applied for well-placement operations in the oil & gas industry. Geosteering gives real-time information in the form of imaging surveys. This technology provides 2D and 3D terrain projections around the oil reservoir by continuously adjusting the drill head positioned above an oil well. Moreover, the drill operating team uses a combination of electronic logs and drilled cutting operations, which helps in identifying the area's paleontological properties and surfaces to be drilled. Geosteering uses various tools, such as logging while drilling (LWD), measurement-while-drilling (MWD), and drive system, for the operations mentioned above. Therefore, the surge in demand for precise real-time information to achieve maximum production is likely to upswing the requirement of geosteering technology due to its real-time information feature. This, in turn, is expected to boost the growth of the Europe geosteering technology market. Increase in production of shale and resulting rise in horizontal and unconventional drilling is among the other factors expected to positively influence the demand for geosteering technology in Europe.
Moreover, Europe is severely affected by the COVID-19 outbreak, especially the UK and Russia. Many countries in Europe are expected to suffer economic downturn due to the decline in business activities across the oil & gas sector in the first quarter of 2020. Many of these member states have implemented drastic measures on imports & exports and shipment of goods, including partially closing their borders, thereby impacting the demand for energy in various industry verticals. This is anticipated to impact the demand for geosteering technologies and associated services in Europe following the outbreak of pandemic. The lockdown is expected to continue negative impact on the geosteering technology market in Europe due to disruption in oil & gas sector and drilling activities across selected countries. However, as several countries begin to reopen industry related to oil and gas sector, it is expected that drilling activities will resume which will support the market growth. Thus, the market is projected to recover steadily over the coming period and gain traction for geosteering technologies during the forecast period.
Based on application, the petroleum development segment led the Europe geosteering technology market in 2019. In mature oil and gas areas, geosteering is used to keep the wellbore in a particular reservoir section to reduce the gas or water breakthrough and improve economic productivity. The geosteering drilling techniques help in addressing problems such as deep and thin reservoirs and unstable structure margin. Moreover, a geosteering approach offers various advantages, such as drilling efficiencies (less sliding, and longer lateral reach), better reservoir penetration, completion efficiencies, and better return on investment (ROI). Geosteering also assists in optimizing the positioning of the horizontal wellbore in sweet spots within reservoirs. The oil and gas exploration companies focus on adopting advanced technologies for advanced and accurate directional drilling to reduce the production costs and drive more profits. The petroleum development companies are leveraging geosteering technology by implementing MWD and LWD tools into mainstream production practices. Advantages of geosteering technology, such as drilling efficiency, better ROI, and better reservoir penetration, are expected to increase its demand for petroleum development during forecast period, thereby driving the growth of the Europe geosteering technology market.
The overall Europe 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 market. The process also serves the purpose of obtaining overview and forecast for the Europe 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 Europe 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 major players operating in the Europe geosteering technology market.