Onshore Drilling Rigs Market Size, Share, Opportunities, And Trends By Drilling Type (Cable Tool Drilling, Horizontal Drilling), By Rig Type (Mobile Rig, Conventional Rig), By Application (Oil & Natural Gas Extraction, Groundwater Extraction), And By Geography - Forecasts From 2023 To 2028

Onshore drilling rigs are specialized structures used in the extraction of oil & gas and groundwater reserves located on land, and they consist of various components and equipment, including a derrick or mast, drill string, drilling fluid system, power source, and control systems. The onshore drilling rig can be a mobile or conventional rig type and is used for extraction purposes due to its ability to penetrate deep into the earth's surface. The increase in the production of oil & gas and the rise in demand for groundwater are driving the demand for onshore drilling rings, thereby accelerating their market growth.

The rise in the extraction activities of oil & gas is expected to drive the onshore drilling rings market growth.

There is a growing need to extract more oil and gas reserves as global energy consumption continues to rise. This increased extraction requires the deployment of additional onshore drilling rigs to access and tap into these reserves effectively. Companies in the exploration and production sector invest in expanding their drilling operations, leading to an increased demand for onshore drilling rigs. The need for advanced drilling technologies, equipment, and services to support efficient extraction processes is fulfilled by onshore drilling rigs. The increase in onshore rig count and investments to strengthen oil extraction to meet the high oil demand will boost the demand for onshore drilling rigs. According to the US Energy Information Administration in 2022, 166 natural gas rigs were operating in the United States, 54 more than at the outset of the pandemic. In 2022, Oil and Natural Gas Corp (ONGC) announced that it would invest ?31,000 crores in the fiscal years 2022-2025 to strengthen its exploration strategy in India, produce 1700 million tonnes of oil and oil equivalent gas, and planned to drill six wells in the next three year. In 2022, Prince Sheikh Mohammed bin Zayed approved an investment of 466 billion dirhams ($127 billion) for the period of 2022-2026 to expand oil & gas production capacity in UAE's oil & gas reserves.

The surge in underground water extraction will boost market growth.

Groundwater is a vital resource used for various purposes such as drinking water, irrigation, and industrial processes. The demand for groundwater extraction rises as population growth and urbanization continue. Onshore drilling rigs play a crucial role in accessing underground water sources by drilling wells that reach aquifers and water reservoirs. Companies and governments invest in expanding their drilling operations as the demand for groundwater extraction increases. The use of groundwater for various purposes and initiatives taken to improve groundwater levels will accelerate the demand for onshore drilling rigs. According to the UN World Water Development Report (WWDR) in 2022, around 22% of groundwater extracted is used for domestic purposes by the global population, and 69% of groundwater is utilized for agriculture. In 2020, the government of India and the World Bank signed a $450 million loan agreement to support the national program to arrest the country’s depleting groundwater levels and strengthen groundwater institutions.

Tighter regulations and fluctuations in product price are restraining the market growth.

Stricter regulations and public pressure to minimize the ecological impact of drilling operations can lead to higher compliance costs and limitations on drilling activities. Fluctuations in commodity prices directly affect the profitability and investment decisions of exploration and production companies. During periods of low prices, companies may reduce drilling activities, resulting in decreased demand for onshore drilling rigs. Political instability, resource nationalism, and changes in government policies can impact investment decisions and introduce risks to the onshore drilling rings market.

During the forecast period, the North American region is expected to hold a significant market share.

North America is anticipated to dominate the market due to its vast oil and gas reserves, advancements in drilling technologies, and increase in demand for groundwater in the region. In 2022, the United States Department of the Interior decided to lease 2 million acres of federal onshore lands for the development and extraction of oil & gas. In 2022, the government of Canada and Ontario planned the construction of the "Shawanaga First Nation Water Treatment Plant" in Shawanaga which included the connection to two new groundwater supply wells to increase access to potable water. These developments boost the demand for onshore drilling rigs and thereby accelerating their regional market growth.

Key Developments

• May 2023: Drilling specialist KCA Deutag acquired Latin American onshore 44 rigs from Saipem to expand their global business in new and active markets and deliver a safe seamless transition to all customers.
• March 2023: ADNOC Drilling acquired ten new-build hybrid power land drilling rigs for $252m, to increase its onshore capacity and meet ADNOC Group’s accelerated production capacity target.
• October 2022: Aramco announced a joint venture with NOV to manufacture drilling rigs in Saudi Arabia, boost economic growth, create job opportunities, and develop local capacities in line with the Saudi Arabian Kingdom’s ambitious vision.

Segmentation

• By Drilling Type
  • Cable Tool Drilling
  • Horizontal Drilling
• By Rig Type
  • Mobile Rig
  • Conventional Rig
• By Application
  • Oil & Natural Gas Extraction
  • Groundwater Extraction
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Other