The geosteering technology market in North America is expected to grow from US$ 4,988.03 million in 2019 to US$ 8,597.20 million by 2027; it is estimated to grow at a CAGR of 11.0% from 2020 to 2027.
Growing production of shale and resulting hike in horizontal and unconventional drilling is expected to escalate the North America 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, the growing production of shale and a resulting hike in horizontal and unconventional drilling is expected to increase demand of geosteering technology due to its advantage such as position optimization, reduced cycle time etc. which will drive the North America geosteering technology market. The rising demand for precise real-time information to achieve highest production is among the other factors expected to positively influence the demand for geosteering technology in North America which will drive the North America geosteering technology market.
Moreover, North America, especially the US, witnessed an unprecedented rise in number of COVID-19 cases which disrupted its manufacturing activities across several industry vertical including oil & gas sector and subsequently impacted the North America geosteering technology market during the early months of 2020. Moreover, the considerable decline in overall global oil prices further restricted the oil drilling and other activities that negatively influenced the demand for geosteering services among its considerably large end-user base which has affected the geosteering technology market in North America. Similar trend was also witnessed in other North American countries, such as Canada and Mexico. However, the countries are expected to gain momentum in demand as they continue to open their economic activities especially in the 2nd half of 2020 for revival of business activities in oil and gas industry which will drive the North America geosteering technology market.
Based on product, the logging while drilling (LWD) segment dominated the North America geosteering technology market in 2019. Logging While Drilling (LWD) is an oilfield technique for providing tool within drill strings that helps in transmitting real-time formation information. LWD deals with measurements related to geological formation made while 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, thereby growing the North America geosteering technology market. Information collected by LWD tool helps the user’s greater visibility to the reservoir and helps in timely decision making and accurate well-placement. The companies operating in the North America geosteering technology market are focusing on offering advanced LWD technology services and solutions to achieve a strong market position in geosteering technology market and attract more customers. Advantages of LWD, such as accuracy and less drilling risk and real time information, are expected to increase the demand for geosteering technology, thereby driving the North America geosteering technology market.
The overall North America 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 North America geosteering technology market. The process also serves the purpose of obtaining overview and forecast for the North America 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 North America geosteering technology market. Cougar Drilling Solution Inc.; Emerson Paradigm Holding LLC; Exlog; Geonaft; Geotech Logging Services LLC; Halliburton Energy Services, Inc.; HMG Software LLC; ROGII Inc.; Schlumberger Limited; and Terracosm Software, LLC are among the key players operating in the North America geosteering technology market.