Market Introduction
Geosteering technology helps in adjusting well placement while drilling to enhance the well's overall performance. Geosteering technology uses the analysis of drilling cuttings data, the combination of real-time electronic logs, and other details from various tools to gain insights into the drilled rock layer. Geosteering technology provides real-time information with 2D and 3D projections of the land around the oil wells. The SAM geosteering technology market growth is majorly driven by the growing petroleum sector in the Brazil and Argentina. The growing population is driving the demand for oil and gas across SAM, leading to an increased usage of geosteering technology which is driving the. SAM geosteering technology market. The increasing oil well drilling activities at the regional level is also driving the growth of the SAM geosteering technology market. Moreover, increasing demand for rotary steerable systems (RSS) by oil & gas companies in the region is also anticipated to propel the SAM geosteering technology market growth. Furthermore, increasing investments in offshore projects will drive the SAM geosteering technology market growth in the forthcoming years. Also, other factors such as increasing demand for precise real-time information to achieve highest production and escalating production of shale and resulting rise in horizontal and unconventional drilling are expected to create significant demand of geosteering technology, which will drive the SAM geosteering technology market.
Furthermore, in case of COVID-19, SAM is highly affected especially Brazil. The Brazil has the highest number of COVID-19 cases, followed by Ecuador, Chile, Peru, and Argentina, among others. Among the SAM countries, Brazil continues to occupy a dominant position in the region’s overall oil producing capabilities. The country also witnessed a major decline in its oil drilling activities following the huge decline in oil prices and subsequent limited drilling activities similar to other global market players which has affected the SAM geosteering technology market. Thus, the country also registered a sharp decline in the demand for geosteering technologies owing to the outbreak of COVID-19 across the SAM region and subsequent lower business activities in the oil & gas sector. Other SAM countries have also witnessed significant negative impact of COVID-19 in their demand for overall oil & gas and subsequently the geosteering related solution as well as services in the wake of global pandemic which has affected the SAM geosteering technology market. Hence, the SAM geosteering technology market witnessed substantial decline in demand during the early months for the year 2020. The coronavirus outbreak's impact is anticipated to be quite severe in the year 2020 and likely in 2021. Hence, the ongoing COVID-19 crisis and critical situation will impact the geosteering technology market growth of the SAM region for the next few quarters.
Market Overview and Dynamics
The geosteering technology market in SAM is expected to grow from US$ 1,146.47 million in 2019 to US$ 1,926.00 million by 2027; it is estimated to grow at a CAGR of 10.6 % from 2020 to 2027. Upswing in demand for intensive research and development (R&D) is expected to accelerate the SAM geosteering technology market. Advances in technology and improved focus on natural gas production are expected to increase geosteering technology demand during forecast period across SAM. The upswing in demand for intensive R&D across SAM has led to the development of advanced products to meet process requirements thereby driving the SAM geosteering technology market. High pressure, high temperature, and ultra-Deepwater of new reservoirs create challenges for the market, resulting in innovative solutions. For example, Halliburton unveiled VisiTrak geospatial navigation and logging while drilling (LWD) analysis for merging reservoir navigation and advanced pre-well modeling to enhance efficiency and enable optimum well-placement for improved hydrocarbon recovery. Different challenges in the field of drilling have increased the demand for intensive R & D, which has led to the development of advanced products and technology such as geosteering technology, which ultimately drives the SAM geosteering technology market.
Key Market Segments
In terms of product, the logging while drilling (LWD) segment accounted for the largest share of the SAM geosteering technology market in 2019. Similarly, in terms of application, the petroleum development segment held a larger market share of the SAM geosteering technology market in 2019.
Major Sources and Companies Listed
A few major primary and secondary sources referred to for preparing this report on the SAM geosteering technology market are company websites, annual reports, financial reports, national government documents, and statistical database, among others. Major companies listed in the report are Cougar Drilling Solution Inc.; Emerson Paradigm Holding LLC; Exlog; Geonaft; Halliburton Energy Services, Inc.; ROGII Inc.; Schlumberger Limited.
Reasons to buy report
SAM Geosteering Technology Market Segmentation
SAM Geosteering Technology Market - By Product
SAM Geosteering Technology Market - By Application
SAM Geosteering Technology Market - By Country
SAM Geosteering Technology Market - Company Profiles