Cutting Pipe perforating Pipe Drilling Tools Market

The global cutting pipe & perforating pipe drilling tools market is expected to grow substantially during the forecast period owing to the increasing drilling activities and the development of unconventional hydrocarbon resources. Moreover, the new oilfield discoveries are expected to create an opportunity for the players operating in the global market. However, the focus on renewable energy generation is expected to restrain the growth of the global cutting pipe & perforating pipe drilling tools market during the forecast period.

The increasing demand for exploration & production (E&P) of oil and gas due to the high energy demand leads to a rise in the number of drilling activities across the world. According to the BP Statistical Review of World Energy 2019, the global oil production grew from 92,502 thousand barrel per day (TBPD) in 2017 to 94,718 TBPD in 2018; the global natural gas production grew from 3,677.7 billion cubic meter (BCM) in 2017 to 3,867.9 BCM in 2018. The growth in production of oil and gas can be attributed to the improving global economic conditions. Moreover, as per the above-mentioned report, the use of natural gas for electricity generation in the world grew by 3.86% in 2018 as compared to 2017. An increase in the production of oil and gas due to the high demand has led to a rise in drilling activities across the world. This increase in the E&P of oil and gas has led to a rise in drilling activities in the world. Oil and gas companies such as Halliburton (US) and Saudi Aramco (Saudi Arabia) focus on oil and gas E&P, which adds to the rising number of drilling activities in the world. In July 2019, Saudi Aramco (Saudi Arabia) had been set to carry out drilling activities worth USD 18 billion to increase the production of oil and gas in Marjan and Berri oilfields located in Saudi Arabia. As per the World Oil Magazine, March 2019, in China, the major oil-producing companies, namely, China National Offshore Oil Corp. (CNOOC), PetroChina, and Sinopec announced to invest USD 77 billion to increase the drilling activities in the country’s existing oil fields. Furthermore, in August 2019, Halliburton (US) signed a contract with Woodside (Australia) for drilling and completion services of offshore SNE Field, located in Senegal, Africa for E&P of oil and gas. Furthermore, according to World Oil Report 2018, the total number of oil wells drilled in the world increased from 41,560 in 2017 to 43,456 in 2018. Such developments have led to an increased demand of cutting pipes and perforating pipe drilling tools that are being used in drilling operations such as cutting of pipes and hole punching in the production of oil and gas. Therefore, the increasing drilling activities are expected to drive the growth of the global cutting pipe & perforating pipe drilling tools market during the forecast period.

The increasing demand for oil and gas to meet the energy requirement has led to the discovery of new oilfields. This has led to a rise in extraction activities of oil and gas in the new discovered oil fields. The discovery of new oil fields is expected to drive the need for cutting pipes and perforating pipe drilling tools such as milling cutters, torch, and water jets. Such products are used for various purposes such as cutting, cleaning, and the removal of materials in the drilling operations. Moreover, the gap between demand and supply of energy has triggered the need for the discovery of the new oilfields across the world. Authorities in countries such as the US, Iran, and Iraq have been focusing on the discovery of the new oilfields to increase the production of oil and gas. For instance, in 2019, the Iranian government announced the discovery of new oilfields with the capacity of more than 50 billion barrels of crude oil in the southern region of the country. In 2019, BP p.l.c. (UK) announced the discovery of new oil fields with the capacity of 1 billion barrels of oil in the Thunder Horse field in the Gulf of Mexico. Moreover, in May 2019, Bashneft International B.V., a subsidiary of Rosneft (Russia) discovered a new oilfield in the southwest region in Iraq. Furthermore, in December 2019, Pemex (Mexico) announced the discovery of Quesqui oil reservoir with a potential of nearly 500 million barrels in south-eastern Mexico. Such developments in the oil & gas industry are expected to increase the demand for cutting pipe and perforating pipe drilling tools, which are used in various operations including cutting and clearing, of pipes and other materials during drilling operations. Therefore, new oilfield discoveries create an opportunity for the players operating in the global cutting pipe & perforating pipe drilling tools market during the forecast period.

Cutting pipe & perforating pipe drilling tools are used in various applications such as pipe cutting, drilling, and hole punching. The rising demand for oil and gas has led to an increase in the demand for cutting pipe and perforating pipe drilling tools. However, as the stakeholders in the power generation industry seek opportunities to reduce carbon footprint, they have been focusing on renewable energy sources for power generation. Renewable energy sources such as wind, solar, and wave & tidal energy are used to generate electricity without carbon footprint. The rising concerns regarding global warming and the reduced dependence on fossil fuel generation sources have increased the demand for renewable energy. As per the data furnished by the International Renewable Energy Agency (IRENA), the share of renewable energy in the power generation is expected to reach 85% in the world’s total energy generation by 2050. Authorities in countries such as the US, Germany, Saudi Arabia, India, and Italy are focusing on increasing the share of renewable energy sources to meet the growing demand for power. As per the reports of the US Department of Energy, by 2050, renewable energy can meet about 80% of the country’s electricity requirements. Moreover, according to the Energy Transition Outlook 2018 published by DNV GL (Norway), solar PV and onshore wind energy are expected to contribute nearly 39% and 28% respectively as sources in the total energy generation in the Middle East and North Africa by 2050. The Indian government set a target to increase the share of renewable power capacity to 100 GW in India by 2022. Furthermore, in 2019, the Saudi Arabian government set a target to have 60GW renewable generation capacity by 2030 in the country. Moreover, in 2019, the Italian government set a target to have 50 GW of solar power generation source by the end of year 2030 with an objective to increase the share of renewable energy in the country’s total power generated. The globally increasing share of renewable energy sources in the total power generation is expected to affect the sale of cutting pipes and perforating pipe drilling tools that are used primarily for the production and exploration of oil and gas in various applications such cutting, removing, joining, and cleaning of pipes and other materials during drilling operations. Thus, the developments in renewable energy power generation are expected to hinder the demand for cutting pipes and perforating pipe drilling tools in oil & gas industry. Therefore, the focus on renewable energy generation is expected to restrain the growth of the global cutting pipe & perforating pipe drilling tools market during the forecast period.