The geosteering technology market in the MEA is expected to grow from US$ 2,175.75 million in 2019 to US$ 4,159.04 million by 2027; it is estimated to grow at a CAGR of 12.4% from 2020 to 2027.
Geosteering technologies are widely applied for well-placement operations in the oil & gas industry across the MEA. 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. The drill operating team also uses electronic logs and drill cutting operations to identify the paleontological properties and surfaces to be drilled in the field. For the above processes, geosteering uses different methods, such as logging while drilling (LWD), measurement-while-drilling (MWD), and drive systems. Therefore, increase in demand for accurate real-time information to achieve highest production is expected to escalate the need for geosteering technology due to its features, such as real-time information and 2D and 3D terrain projections. This, in turn, is likely to boost the growth of the MEA geosteering technology market. Rise in shale production and resulting hike in horizontal and unconventional drilling are among the other factors expected to positively influence the demand for geosteering technology in MEA.
Moreover, the MEA region is highly affected due to the COVID-19 outbreak, especially South Africa. GCC countries witnessed a notable decline in their oil & gas sector owing to sharp decline in demand for oil from major end-user countries across Asia, Europe and North America. As a result, the countries registered a lowered volume of oil production and subsequently the demand for geosteering activities. Countries such as Saudi Arabia, UAE, Qatar and selected other members of OPEC countries also observed similar trends during the early months of the COVID-19 outbreak. Hence, the region witnessed a significant decline in demand for the geosteering technology during the first quarter of 2020. Furthermore, as the oil prices plummeted significantly due to limited demand in the MEA region, has resulted in a considerable decline in production activities among the significant oil producing MEA countries. Consequently, the discontinuation of drilling activities virtually disrupted the demand for any related supporting services and solution including MEA geosteering technology market. The impact of the 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 MEA geosteering technology market growth for the next few quarters.
Based on product, the measurement-while-drilling (MWD) segment is expected to grow at the fastest rate during the forecast period. Geosteering and MWD assist the companies in the drilling process by providing real-time data access. Geosteering generates real-time data by constantly changing the drill head's location above the oil well in the form of imaging analysis, surveys, and 2D and 3D terrain projections across the reservoir. MWD is used to monitor the data on surfaces while drilling continuously. MWD is a type of well-logging that includes measurement tools into the drill string and provides real-time information to help with steering the drill. Unlike logging while drilling (LWD), the data in MWD is transmitted up the pipe utilizing pulses and electromagnetic telemetry. MWD can run directional surveys in real-time, and these tools use accelerometers and magnetometers to measure borehole inclination and azimuth during the actual drilling. Advantages of MWD, such as real time data access, imaging analysis, and directional surveys, are expected to increase its demand during the forecast period, thereby driving the MEA geosteering technology market.
The overall MEA 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 MEA 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, market intelligence managers, and national sales managers, along with external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the MEA geosteering technology market. Cougar Drilling Solution Inc.; Emerson Paradigm Holding LLC; Exlog; Geonaft; Geotech Logging Services LLC; Halliburton Energy Services, Inc.; ROGII Inc.; and Schlumberger Limited are among the key players operating in the MEA geosteering technology market.