The continuous focus on research and technological advancements, has aided the oil companies in minimizing the cost of operation and maintenance while carrying out exploration and production activities. This has not only increased the efficiency and stability of the products/services offered by the oil & gas companies but has also increased the production rate, leading to large revenue generation for the companies. Research and development in directional drilling involves substantial investments and significant risks. In order to minimize the same, the leading players are seeking new developments in products & services and are signing new contracts & agreements.
With the advent of horizontal drilling technologies such as rotary steerable systems, the oil & gas extraction has witnessed a technological revolution. These technologies have facilitated the production of oil & gas in hostile environments, such as HPHT (high temperature high pressure). The innovations in the field of wireless communication have also facilitated gathering of downhole information in real-time, thus providing increased control over the well trajectory. These technological progressions have reduced the overall well costs while increasing the oil & gas production.
Directional drilling service is advancing beyond conventional mud motors applications. The growing demand for energy and the depletion of the existing reservoirs have made untapped reservoirs with typical geological structures, a crucial alternative. As these resources cannot be tapped effectively with the existing vertical well technology, the oil & gas companies are adopting directional drilling technologies to explore the most difficult formations across the African region.
The directional drilling market is dominated by a few key players but it is expected to become competitive in the coming years as many companies have started catering onshore and offshore application segment of the African drilling services market. The African region is one of the most attractive markets for directional drilling as of now due to increase in the oil demand by the Asian countries.
The African drilling services market continues to grow at an increasing pace, as the requirement to maintain and boost recovery rates from hydrocarbon reservoirs has increased and will continue to do so.