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According to the latest research report titled “Geosteering Technology Market Forecast to 2027 - COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 27.91 billion by 2027, registering a CAGR of 11.8% during 2020-2027.
APAC Geosteering Technology Market to Grow at Highest CAGR during 2020-2027
APAC is the largest continent in the globe and is well-known for technological innovations taking place in countries such as India, China, Japan, and South Korea. Rapid technological developments, government initiatives, digitalization of economies, and rise in disposable income of the middle-income class group are among the factors propelling the overall economic growth of the region and driving it from a developing to a developed phase. The region’s oil & gas industry is forecasted to witness an increase in mergers & acquisitions and final investment decisions. The growth in the oil & gas industry is likely to propel the upstream and downstream activities. The oil & gas industry has primarily focused on adopting real-time technologies and geosteering can apply real-time information to control the direction of the wellbore. Hence, there is an increase in demand for geosteering technology in the oil & gas industry.
Several upstream, midstream, and downstream oil & gas projects have started in 2019, which is expected to contribute to oil & gas industry employment and add a substantial volume to global oil or gas production in the coming years. For instance, Pertamina, a Jakarta-based oil & natural gas corporation has initiated the East Natuna Block (Natuna D-Alpha), a natural gas based project. The project comprises a 2,000 km pipeline from Natuna to PTT Exploration and Production Public Company’s (PTTEP) infrastructure in the Gulf of Thailand. Thus, growing oil & gas projects would accelerate the adoption of geosteering technology.
The geosteering technology market in the region is likely to grow at a rapid pace over the next few years due to growing oil well drilling activities and demand for smart drilling technologies. The market is anticipated to expand at a high CAGR during the forecast period. China, India, Japan, and Australia are key countries that drive the geosteering technology market in the region. In 2017, as per the world oil data, 17,000 oil well drilling activities were conducted in China, up from 15,800 drilling activities in 2016. In India, 624 oil well drilling activities were conducted in 2017, from 585 drilling activities in 2016.
Key Findings of Study:
• The market in China is likely to propel owing to growing investments in several projects. For instance, Zhoushan (Zhejiang) Refinery and Petrochemical Complex (Phases 1 and 2) project was commenced in 2019. It is located in the Zhejiang province of the country and functioned by the Zhejiang Petroleum and Chemical Company. It is being constructed in two phases and would have a refining capacity of 800,000b/d when completed. The downstream products that would be produced during the project are ethylene oxide/ethylene glycol (EO/EG), polyethylene (PE), polypropylene (PP), styrene, butadiene (BD), and ethylene vinyl acetate (EVA). This project would play an important role in meeting the increasing demand for downstream in China. Thus, growing projects would demand the geosteering technology in the country.
• The growing oil & gas projects in the UK are surging the demand for geosteering technology, for instance, the Rosebank & Lochnagar Oil & Gas Fields project. The Rosebank discovery well was drilled in 2004 and generated 6,000 barrels per day of light oil; it is one of the biggest prospects in the country’s Continental Shelf, and it’s still undergoing planning. The project comprises a 16-inch 236 km gas export pipeline, which connects Rosebank to the Shetland Islands Regional Gas Export line and further to St Fergus. In phase 1, seven oil producers and seven water injector wells have been drilled. Phase 2 includes drilling of six oil producers, and phase 3 development comprises one or two gas production wells.
• In mature oil & 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 (including better ROP, less sliding, and longer lateral reach), better reservoir penetration, completion efficiencies, and better ROI. Geosteering also assists in optimizing the positioning of the horizontal wellbore in sweet spots within reservoirs. The oil & gas exploration companies focus on adopting cutting-edge 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.