PDC Drill Bits Market size is set to experience robust growth over 2021-2027 powered by increasing oil and gas drilling activities and the demand for advanced technologies that deliver faster drilling with less downtime and minimum wear and tear. Continuous investments in the oil and gas sector are being witnessed globally which will further amplify this demand in the future.
Polycrystalline diamond compact (PDC) drill bits represent one of the most significant advances in drilling tools in recent years. With considerably higher rate of penetration (ROP) potential, they have significantly revolutionized the oil and gas drilling industry. These drill bits are typically made with synthetic diamond cutters in either a matrix body or a steel body material.
Matrix body PDC drill bits are experiencing rapid adoption worldwide and are likely to hold a significant market share through 2027. These drill bits offer numerous advantages including a longer life, high volume of fluid, and multiple runs. The tool also offers superior structural strength along with resistance to erosion, wear and tear. The demand for matrix body PDC drill bits will be augmented by the need for advanced and efficient drilling technologies.
The PDC drill bit market in North America is expected to register appreciable gains by the end of 2027, mainly led by the increasing shale oil and gas exploration activity. The U.S., followed by Canada and Mexico, is among the world’s largest producers of oil and gas. Growing number of onshore as well as offshore deep drilling projects will bolster the regional industry outlook.
Baker Hughes, Halliburton Company, Atlas Copco, Great Drill Bits, Ulterra Drilling Technologies, NewTech Drilling, Torquato Drilling, Varel International, and Cangzhou are among the prominent manufacturers of PDC drill bits. R&D and product innovation are top priority among these companies as they anticipate a notable rise in the demand for drilling technologies in the forthcoming years. Consequently, new, improved, and more advanced technologies are constantly entering the PDC drill bit market trends.
For example, in October 2020, Halliburton Company had unveiled the Crush & Shear Hybrid Drill Bit, a novel technology that brings together the efficiency of conventional PDC cutters and the torque-resistant capability of rolling elements, designed to deliver improved drilling efficiency and maximum bit stability through changing formation.
The ongoing COVID-19 pandemic has adversely impacted the global oil & gas sector, leading to reduced exploration activities and a weakened demand for drilling equipment. Even though oil and gas exploration is considered as an essential activity by governments and has been mostly exempted from lockdown restrictions, the pandemic has forced oil and gas companies to either stop or slow down physical operations.
Throughout the pandemic, continued operation has been difficult due to workforce shortages and practical difficulties due to social distancing and other precautionary measures. Additionally, shortage of raw materials and equipment has impacted inspection, drilling, repair, maintenance, and replacement activities.
However, the pandemic situation is gradually improving and drilling projects have started to return to pre-COVID speeds. The U.S. Energy Information Administration (EIA) estimates U.S. shale oil output to increase by nearly 38,000 bpd to reach 7.8 million bpd in July 2021. EIA also reports that U.S. oil and gas producers are ramping up drilling activity as oil prices have rebounded.