The size of the worldwide side tracking market is predicted to reach USD 651.3 million in 2026, with a CAGR of 6.56% between 2021 and 2026.
Sidetracking is the advanced technique of drilling a secondary well away from drilling. Mainly, it helps to maximize oil recovery by easily reaching an untapped reserve. Oil and gas companies are focused on escalating drilling activity by exploring untapped reserves to meet energy calls. Various applications of sidetracking include damage to the well by debris, damage to the production area in the original well, harvesting in another less depleted drainage area, and others. Also, increased energy call, urbanization, industrialization, increased exploration, and others are some of the factors that are driving the expansion of the sidetracking market during the foreseen period. Sidetracking is a highly developed drilling technique in which the latest side of an already present well is drilled that has less productivity owing to mechanical damage at a specific well site. Wells usually need a deviation to re-drill the well to a new target.
The worldwide sidetracking industry is predicted to see strong expansion during the foreseen period due to increased investments in new oil and gas discoveries. This is predicted to drive the call for the sidetracking market during the foreseen period. Escalating worldwide call for energy is one of the key factors that will trigger market expansion during the foreseen period. Increasing population and economic development have led to an increase in the worldwide call for energy. Therefore, oil and gas companies will focus on escalating drilling operations by exploring untapped reserves to meet energy calls. In addition, with the increase in oil and gas drilling operations to exploit more reserves, mechanical failures will increase. This will increase the need to divert drilling operations.
In 2019, Weatherford launched a single-track open hole cementing bypass system capable of initiating bypass operations without the need for a cement plug. The company's AlphaST is designed to increase operational flexibility, eliminate multiple paths, and avoid costly cementing operations.
The main factors driving the sidetracking market are the escalating call for product optimization from mature oil and gas fields and automation of directional drilling. However, lower oil spending due to low crude prices is a limiting factor for the expansion of the worldwide sidetracking market. Population expansion and economic development around the world have increased the worldwide call for energy. Escalating worldwide energy calls is a key factor that is predicted to drive the market during the foreseen period. Furthermore, the requirement to optimize production in mature oil and gas fields is also driving market expansion. Furthermore, the call for natural gas has also increased due to its green ownership. Oil and gas companies must focus on escalating drilling activity by exploring untapped reserves to meet the growing call for energy around the world. In addition, escalating oil and gas drilling to obtain more reserves is predicted to cause many mechanical failures. This is predicted to further increase the need to avoid drilling operations. Oil and gas companies are highly focused on automating their oil operations to optimize processes with minimal human intervention. Directional drilling operations are also automated to increase your productivity, efficiency, safety, and quality. Additionally, automation of directional drilling is predicted to eliminate the need for continuous monitoring and help overcome challenges such as variable geographical conditions and mismatch between drilling control systems. Therefore, automation of directional drilling techniques is predicted to drive sidetracking market expansion during the foreseen period.
Government regulations related to drilling operations and transportation activities in the oil and gas industry have forced oil and gas operators to limit themselves to making investment decisions. Therefore, it may hamper the expansion of the worldwide sidetracking market during the foreseen period.
Mature oil and gas fields have already reached their peak of production and are in decline. The hydrocarbons present in these oil fields are recovered using conventional methods such as the natural pressure of the reservoir. As a result, oil and gas companies use advanced techniques, such as sidetracking, to optimize oil and gas recovery and increase productivity. The diversion facilitates access to untapped reserves and allows maximum hydrocarbon recovery. Therefore, the adoption of this technique over conventional methods is predicted to drive sidetracking market expansion during the foreseen period. Exploration of unconventional resources in the escalating adoption of horizontal drilling and hydraulic fracturing has resulted in an increase in the production rate of crude oil, condensate, and natural gas. This will drive the expansion of the worldwide sidetracking market during the foreseen period.
Risks associated with drilling operations, escalating regulation of EandP's operations, and transportation activities in the oil and gas industry have forced EandP's oil and gas operators to limit themselves to making investment decisions. This may lead adverse impact on the oilfields and business, which may hamper the expansion of the worldwide sidetracking market during the foreseen period.
The onshore segment is predicted to have the largest market share and to grow at the fastest rate during the foreseen period due to the improvement in the movement of hydrocarbons to the right well and an increase in oil and gas production from the activities on land.
The Sidetracking report includes the segmentation of Regions:
North America has the largest share of the diversion market due to technological advancements and increased oil and gas production. Furthermore, the Asia-Pacific drift market is predicted to experience the fastest expansion during the foreseen period, mainly due to the escalating call for oil and gas products. The leaders of the diversion market are present in Europe. The region is predicted to offer several expansion opportunities to market players during the foreseen period. Increased investment and new oil and gas discoveries are predicted to significantly drive sidetracking market expansion in this region. Therefore, the market expansion rate in Europe is predicted to be faster than in MEA, North America, and South America.
The COVID-19 pandemic has disrupted the worldwide economy. Worldwide travel bans, as well as the suspension of international flights, are resulting in a sharp reduction in fuel consumption for aviation turbines around the world. This has resulted in a reduction in the total call for oil. Furthermore, the pandemic has restricted all forms of mobility; therefore, the fuel consumption of the transportation sector is predicted to decrease dramatically. The drilling industry is also facing difficulties due to a lack of manpower. The spread of the virus is predicted to be greater in the drilling areas, as a large number of employees work in groups. These factors should reduce the call for sidetracking in the current scenario.
The key players in the global sidetracking market are
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 Sidetracking Market, By Application
6.1.3 Market Size Estimations & Forecasts (2021-2026)
6.1.4 Y-o-Y Growth Rate Analysis
6.1.5 Market Attractiveness Index
6.2 Sidetracking Market, By Industry
6.2.1 Oil natural gas
6.2.3 Market Size Estimations & Forecasts (2021-2026)
6.2.4 Y-o-Y Growth Rate Analysis
6.2.5 Market Attractiveness Index
7. Geographical Landscape
7.1 Global Identity Governance and Administration Market, by Region
7.2 North America - Market Analysis (2018 - 2024)
7.2.1 By Country
7.2.2 By Application
7.2.3 By Industry
7.3.1 By Country
18.104.22.168 Rest of Europe
7.3.2 By Application
7.3.3 By Industry
7.4 Asia Pacific
7.4.1 By Country
22.214.171.124 South Korea
126.96.36.199 South East Asia
188.8.131.52 Australia & NZ
184.108.40.206 Rest of Asia-Pacific
7.4.2 By Application
7.4.3 By Industry
7.5 Latin America
7.5.1 By Country
220.127.116.11 Rest of Latin America
7.5.2 By Application
7.5.3 By Industry
7.6 Middle East and Africa
7.6.1 By Country
18.104.22.168 Middle East
7.6.2 By Application
7.6.3 By Industry
8. Key Player Analysis
8.1 Baker Hughes Co.
8.1.1 Business Description
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.2 Equinor ASA
8.3 Eurasia Drilling
8.5 Nabors Industries
8.6 National Oilwell Varco
8.7 Odfjell Drilling
8.9 Weatherford International plc
8.10 Yantai Jereh Oilfield Services Group Co. Ltd
9. Market Outlook & Investment Opportunities
List of Tables
List of Figures