APAC Drilling Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 3.50 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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APAC Drilling Market Analysis
The Asia-Pacific Drilling market is expected to grow at a CAGR of greater than 3.5% during the forecast period.
The market was heavily affected by the COVID-19 pandemic, as due to a massive fall in energy demand across the region, many oil and gas projects were canceled or delayed due to uncertainty in the market resulting in a lack of economic feasibility for most major projects.
- Due to dwindling onshore reserves, the Offshore segment is expected to be the fastest growing market segment during the forecast period.
- However, dwindling domestic reserves across most of the region, coupled with ecological concerns over the environmental impact of major hydrocarbon projects is expected to restrain the market during the forecast period.
- The development of smaller, complex offshore gas fields remains a significant opportunity for the market during the forecast period.
- Due to significant reserves and domestic demand, China is expected to be the largest geographical segment in the region during the forecast period.
APAC Drilling Market Trends
This section covers the major market trends shaping the Asia- Pacific Drilling market according to our research experts:
Offshore segment to be the fastest-growing segment
- As most countries in the Asia-Pacific region have relatively smaller onshore reserves, most of these reserves have been commercially exploited. As demand for energy grows, most countries in the region have focused on the development of riskier offshore reserves to satiate domestic demand.
- The offshore sector was hit especially hard by the pandemic when several large offshore projects were either delayed or canceled due to a decline in energy demand, negatively impacting project economics. Despite this, as the global economy recovers from the economic effects of the pandemic, coupled with the disruptive effect of the Russia-Ukraine conflict in global energy markets, the demand for offshore drilling services is expected to grow steadily during the forecast period.
- According to Baker Hughes international rig count, since February 2021, when offshore drill rig count in the Asia-Pacific region fell to 60, the lowest number since July 2012, offshore rig numbers have rebounded by nearly 28.3% to 77 during August 2022.
- In September 2022, Diamond Offshore Drilling announced that they had won a contract from Inpex Australia for its Ocean Apex semi-submersible in the Northwest Shelf of Australia. The scope of the contract covers 2 wells and is expected to commence in Q3 2023.
- Similarly, in April 2022, Maersk Drilling was awarded a 1-year contract extension for its ultra-deepwater semi-submersible rig Maersk Deliverer. The contract was offered by Inpex for carrying out drilling operations in the Ichthys field in the Browse Basin offshore Western Australia. The contract extension is expected to commence in July 2023, with an option for an additonal one-year extension.
- In May 2022, Shelf Drilling was awarded a 3-year contract for its F.G. McClintock jack-up rig by Oil and Natural Gas Corporation (ONGC) for drilling in the Mumbai High, offshore India. The contract is expected to commence in Q1 2023.
- Such large drilling contracts demonstrate the steady influx of revenue in the Offshore segment of the Asia-PAcific drilling market, which is expected to grow at a steady pace and be the fastest-growing market segment during the forecast period.
China to emerge as the largest geographical segment in the market
- China is the largest energy consumer globally. However, due to relatively smaller conventional hydrocarbon reserves, the country is heavily dependent on energy imports. To reduce its dependence on energy imports, the country has been investing heavily to maximise the potential of its domestic reserves.
- According to BP Statistical Review of World Energy 2021, China produced 209.2 Bcm (billion cubic metres) of natural gas and 3994 thousand barrels/day of crude oil during 2021, while it consumed 378.7 bcm of natural gas, and 15,442 thousand barrels/day of crude oil during 2021. Moreover, domestic hydrocarbon production has also been falling steadily.
- To bridge this massive gap in domestic production and consumption, while China has been investing heavily in E&P (exploration and production) activities to increase domestic production, a major factor driving the demand for drilling services in the country during the forecast period.
- One of the primary strategies adopted by the Chinese government has been the development and commercialisation of unconventional reserves. China has significant shale reserves, but shale oil accounts for only about 35 thousand barrels/day (~1%) of the country's total oil production. This is primarily due to high breakevens and non-commercial economics of shale production technology, but the Chinese stae-backed companies are investing massively in the commercialisation of the technology.
- In July 2022, China's state-owned oil company CNOOC announced that it had tapped commercial oil and gas flows from a shale exploration well in the South China Sea, the first offshore shale well. According to CNOOC, the Beibu Gulf region holds nearly 8.76 billion barrels of shale oil, and after the commercial discovery, development is expected to accelerate, driving higher investments in the sector.
- Similarly, in September 2021, PetroChina announced that it planned to produce nearly 20,000 bpd of shale oil in 2025 from Gulong, an uncoventional shale reserve in the Songliao basin. According to PetroChina, the field has proven geological reserves of more than 9 billion barrels.
- Hence, driven by high domestic demand, and efforts to develop and commercialise China's massive untapped shale potential, the country is expected to drive the demand for drilling services in the region during the forecast period.
APAC Drilling Industry Overview
The Asia-Pacific Drilling market is fragmented. Some of the major players in the market (in no particular order) include Schlumberger Ltd, Weatherford International PLC, Halliburton Company, Baker Hughes Company, and China Oilfield Services Limited among others.
APAC Drilling Market Leaders
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Schlumberger Ltd
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Weatherford International PLC
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Halliburton Company
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Baker Hughes Company
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China Oilfield Services Limited
*Disclaimer: Major Players sorted in no particular order
APAC Drilling Market News
Recent developments will be provided in the full report.
APAC Drilling Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Number of active drilling rigs, by major countries, Asia-Pacific, July 2012- August 2022
4.3 Number of active drilling rigs, by location of deployment, Asia-Pacific, July 2012- August 2022
4.4 Market Size and Demand Forecast in USD billion, till 2027
4.5 Recent Trends and Developments
4.6 Government Policies and Regulations
4.7 Market Dynamics
4.7.1 Drivers
4.7.2 Restraints
4.8 Supply Chain Analysis
4.9 Porter's Five Forces Analysis
4.9.1 Bargaining Power of Suppliers
4.9.2 Bargaining Power of Consumers
4.9.3 Threat of New Entrants
4.9.4 Threat of Substitutes Products and Services
4.9.5 Intensity of Competitive Rivalry
5. MARKET SEGEMENTATION
5.1 By Location of Deployment
5.1.1 Onshore
5.1.2 Offshore
5.2 By Reservoir Type
5.2.1 Conventional
5.2.2 Unconventional
5.3 By Country
5.3.1 China
5.3.2 India
5.3.3 Australia
5.3.4 Indonesia
5.3.5 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Companies Profiles
6.3.1 Schlumberger Ltd
6.3.2 Weatherford International PLC
6.3.3 Halliburton Company
6.3.4 Baker Hughes Company
6.3.5 Scientific Drilling International Inc. (SDI)
6.3.6 China Oilfield Services Limited
6.3.7 Nabors Industries Ltd
6.3.8 National Oilwell Varco Inc.
6.3.9 PHX Energy Services Corp.
7. MARKET OPPORTUNITIES and FUTURE TRENDS
APAC Drilling Industry Segmentation
Drilling is defined as a complex set of operations necessary to construct wells of circular sections applying excavation techniques to depths from which oil or natural gas can be commercially extracted. The Asia-Pacific Drilling market is segmented by location of deployment, reservoir type, and geography. By location of deployment, the market is segmented into onshore and offshore segments. By reservoir type, the market is segmented into conventional and unconventional. The report also covers the market size and forecasts for the Asia-Pacific drilling market across the major countries. For each segment, the market sizing and forecasts have been done based on revenue (USD Million)
APAC Drilling Market Research FAQs
What is the current Asia-Pacific Drilling Market size?
The Asia-Pacific Drilling Market is projected to register a CAGR of greater than 3.5% during the forecast period (2024-2029)
Who are the key players in Asia-Pacific Drilling Market?
Schlumberger Ltd, Weatherford International PLC, Halliburton Company, Baker Hughes Company and China Oilfield Services Limited are the major companies operating in the Asia-Pacific Drilling Market.
What years does this Asia-Pacific Drilling Market cover?
The report covers the Asia-Pacific Drilling Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific Drilling Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia-Pacific Drilling Industry Report
Statistics for the 2024 Asia- Pacific drilling market market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia- Pacific drilling market analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
