The geosteering technology market in SAM is expected to grow from US$ 1,146.47 million in 2019 to US$ 1,926.00 million by 2027; it is estimated to grow at a CAGR of 10.6% from 2020 to 2027.
Geosteering technologies are widely applied for well-placement activities in the oil & gas industry across SAM. In the form of imaging surveys, geosteering provides real-time information. This technology gives 2D and 3D terrain projections around the oil reservoir by constantly changing the drill head positioned above an oil well. Moreover, the drill operating team uses a combination of electronic logs and drilled cutting operations, which helps in identifying the area's paleontological properties and surfaces to be drilled. Geosteering uses various tools, such as logging while drilling (LWD), measurement-while-drilling (MWD), and drive systems, for the operations mentioned above. Therefore, increasing demand for precise real-time information to achieve highest production is expected to upswing the demand for geosteering technology, thereby boosting the growth of the SAM geosteering technology market. The escalation in production of shale and resulting rise in horizontal and unconventional drilling is among the other factors expected to positively influence the demand for geosteering technology in SAM which will drive the SAM geosteering technology market.
SAM is highly affected by the COVID-19 pandemic, especially Brazil. Brazil has the highest number of COVID-19 cases, followed by Ecuador, Chile, Peru, and Argentina. Among the SAM countries, Brazil continues to occupy a dominant position in the region’s overall oil producing capabilities. The country also witnessed a major decline in its oil drilling activities following the huge decline in oil prices and subsequent limited drilling activities similar to other global market players. The country registered a sharp decline in the demand for geosteering technologies owing to the outbreak of COVID-19 across the SAM region and subsequent lower business activities in the oil & gas sector. Other SAM countries have also witnessed significant negative impact of COVID-19 in their demand for overall oil & gas and subsequently the geosteering related solution as well as services in the wake of global pandemic. Hence, the SAM geosteering technology market witnessed substantial decline in demand during the early months for the year 2020. The COVID-19 outbreak's impact is anticipated to be quite severe in 2020 and it is likely to continue in 2021 as well. Hence, the ongoing COVID-19 crisis is anticipated to impact the growth of the SAM geosteering technology market for the next few quarters.
Based on application, the petroleum development segment led the SAM geosteering technology market in 2019. In mature oil and 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 (less sliding, more extended lateral reach), better reservoir penetration, completion efficiencies, and better return on investment (ROI). Geosteering also assists in optimizing the positioning of the horizontal wellbore in sweet spots within reservoirs. The oil and gas exploration companies are focusing on adopting advanced and accurate directional drilling technologies to reduce production costs and drive more profits. The petroleum development companies are leveraging geosteering technology by implementing measurement-while-drilling and logging while drilling tools into mainstream production practices. Advantages of geosteering technology in petroleum development, such as drilling efficiency, better ROI, and better reservoir penetration, are expected to increase its demand during the forecast period, thereby fueling the growth of the SAM geosteering technology market.
The overall SAM geosteering technology market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the SAM geosteering technology market. The process also serves the purpose of obtaining overview and forecast for the SAM geosteering technology market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants who typically take part in such a process include industry experts, such as VPs, business development managers, geosteering technology market intelligence managers, and national sales managers, along with external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the SAM geosteering technology market. Cougar Drilling Solution Inc.; Emerson Paradigm Holding LLC; Exlog; Geonaft; Halliburton Energy Services, Inc.; ROGII Inc.; and Schlumberger Limited are among major players operating in the SAM geosteering technology market.