Geothermal Drilling Rig Market – Global Industry Report, 2030

GRC Seeks Feedback from Geothermal Stakeholders to Generate Cash Flow amidst COVID-19

The U.S.-based Geothermal Resources Council (GRC)-an international non-profit association for geothermal energy is addressing the issues of job scarcity, owing to the ongoing COVID-19 (coronavirus) pandemic. Shutdown of oil & gas industries has compelled the GRC to issue a special message for service and equipment manufacturer companies in the geothermal drilling rig market. The GRC is encouraging service and consultant companies in the geothermal industry to keep the cash flowing by taking up new drilling projects. Rescheduling of work plans and well workovers have become constant amidst the COVID-19 era.

The GRC is increasing efforts to seek feedback from companies in the geothermal drilling rig market to quantify the economic and job creation impact. As such, the oil and gas downturn triggered by the COVID-19 impact is directly affecting revenue generation activities in the market landscape.

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Fluid Hammer Drilling Technology Unlocks Potentials in Inaccessible Geothermal Energy Sources

Fluid hammer drilling technology is helping geothermal plant owners to reduce drilling costs. For instance, Strada Global— an innovative deep drilling company is increasing efforts to help plant owners reduce drilling costs with the help of its patented technology of Fluid Hammer Operating System (FHOS), which taps inaccessible geothermal energy sources. As such, the fluid hammer drilling technology is revolutionizing traditional drilling methods and is making large-scale geothermal applications profitable.

Manufacturers in the geothermal drilling rig market are increasing their efficacy in the testing of unique and patented deep drilling technologies such as the fluid hammer drilling technology. This technology is advantageous in critical infrastructure projects that require fast, safer, and affordable drilling. Geothermal energy stakeholders are increasing the applicability of the fluid hammer drilling technology in hard rock drilling, owing to its safety in downhole condition controllability.

Ruggedized Communication Technology Creates Business Expansion Opportunities in Aerospace

Optimization of geothermal drilling technologies is helping rig manufacturers to gain funding from government organizations. For instance, the U.S. Department of Energy (DOE) has announced a funding of US$ 22 Mn in grants for two companies under the energy efficiency and renewable energy innovation program. In this way, small-scale companies in the geothermal drilling rig market can demonstrate their technical feasibility in the field of energy efficiency through government funding.

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Companies in the geothermal drilling rig market are acquiring global recognition by adopting ruggedized communication technology. This technology helps to facilitate high temperature directional drilling and in increasing exploration depths. The ruggedized communication technology is creating revenue opportunities for companies in the market for geothermal drilling rigs, since the tech acts as a data backbone for subterranean drill-strings. As such, equipment manufacturers are exploring untapped opportunities in high temperature applications for aerospace and industrial controls with the help of the novel technology.

Machine Learning Optimizes Geothermal Drilling with Deployment of Telemetry

Companies in the geothermal drilling rig market are exploring the field of machine learning (ML), while making improvements in telemetry. Such new trends are boosting the growth for the geothermal drilling rig market, which is estimated to reach ~US$ 200 Mn by 2030. However, heavy upfront costs associated with both geothermal power plants and geothermal heating/cooling systems act as a restraint for the purchase rig equipment. Hence, companies in the geothermal drilling rig market are adopting telemetry to maximize penetration rates and minimize costs.

Telemetry helps reduce geothermal well costs and delivers downhole drilling data, which helps to optimize the drilling performance. ML algorithms are being used, along with telemetry short-hop downhole communications to maximize drill bit life. As such, roller-cutting bit dictates the highest revenue share among all drill bits in the market.

Co-developing Technologies Reduce Drilling Friction and Boosts Production Levels

Co-developing the existing drilling technology is a popular trend in the geothermal drilling rig market. For instance, yet2- a global open innovation consulting company, is encouraging partners to innovate in technologies that involve continuous drilling and casing technologies for oil and gas stakeholders. Even though the geothermal drilling rig market in the Asia Pacific region is predicted for aggressive growth, equipment manufacturers are tapping into incremental opportunities in the U.S., owing to the government’s keen interest in geothermal technology development.

Equipment manufacturers in the market for geothermal drilling rigs are bolstering their R&D muscle in innovative technologies that bag funding grants by the government in order to reduce non-drilling time. Various environmental concerns have catalyzed the demand for geothermal drilling rigs that result in smaller footprint as compared to conventional rigs. Low drilling friction and reduction in non-productive time is becoming important for stakeholders in the geothermal energy sector.

Portable and Compact Geothermal Drilling Rigs Help Lower Transportation Costs

Norwegian supplier of mobile drilling rigs, Qmatec Drilling AS, is gaining increased visibility in the Europe geothermal drilling rig market for its GeoTherm SWS rig that converts deep geothermal power to an affordable energy source for rural and remote areas. As such, Europe dominates the highest revenue among all regions in the global geothermal drilling rig market, where the market is anticipated to progress at a modest CAGR of 4.5% during the forecast period.

Portable drilling rigs are being highly publicized for its cost optimization offerings. Since developing geothermal power plants is expensive, owing to the transportation of heavy drilling machinery, manufacturers are developing compact and mobile geothermal drilling rigs that are easy on transportation. Interchangeable drilling mechanism is being highly preferred by the owners of geothermal energy plants.

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Analysts’ Viewpoint

Increased focus on new drilling projects and well workovers are creating job opportunities for individuals in the geothermal industry amidst the COVID-19 outbreak. Small-scale companies in the U.S. are leveraging opportunities in technological innovations in geothermal energy efficiency with the help of government funding.

The machine learning algorithms and telemetry techniques such as downhole processing pattern recognition are helping in optimizing geothermal drilling. However, the issue of carbon emissions associated with the use of diesel generators in rural areas for carrying out drilling practices is hampering market growth. Hence, companies in the geothermal drilling rig market should innovate in compact and portable drilling rigs that help to drastically reduce carbon emissions.