Coring Market

Recent mergers and acquisitions in the US shale sector have surpassed USD 100 billion, signaling strong investment momentum. These deals, led by major players such as ExxonMobil and Chevron, aim to consolidate shale assets, improve operational efficiency, and meet the rising energy demand. As new shale wells are planned across acquired sites, the need for coring services becomes critical to evaluate well potential and guide efficient drilling strategies. Horizontal and directional drilling techniques continue to dominate the US oil and gas landscape, with 81% of well completions in 2021 falling into these categories. These advanced drilling methods not only improve access to shale formations but also enhance the economic feasibility of such operations. Beyond the US, India is making notable progress in shale exploration. ONGC has estimated approximately 187.5 TCF of shale gas reserves across five key basins—Cambay, Ganga Valley, Assam & Assam Arakan, Krishna Godavari On-land, and Cauvery On-land. Unlocking these resources will require advanced coring techniques to accurately assess subsurface characteristics. As hydraulic fracturing and horizontal drilling evolve, the global coring market is set to benefit from increasing shale development initiatives.

Oil prices are estimated to average approximately USD 81 per barrel at the end of 2024, slightly down from the 2023 average of USD 83 per barrel. This modest decline reflects persistent market volatility, largely fueled by ongoing geopolitical tensions and global economic uncertainties. A significant surge in oil prices was observed following the Russia-Ukraine conflict, with WTI crude prices rising by USD 37.14 (a 52.33% increase) and Brent crude climbing by USD 41.49 (a 56.33% increase). Oil price trends remain interdependent and subject to abrupt shifts, which introduces a high level of uncertainty for investors. This unpredictability can hinder exploration and development efforts, as companies become more cautious about committing to long-term projects. Such hesitancy often results in reduced drilling activity, ultimately impacting the demand for coring services. In essence, while oil prices remain relatively high, the instability in market conditions continues to pose a significant challenge to exploration investments, leading to potential slowdowns in subsurface evaluation and data collection efforts.

Indonesia boasts the world’s largest geothermal potential, estimated at approximately 27.79 Gigawatts (GW), accounting for nearly 40% of the global geothermal resources. This immense geothermal reserve is a key driver for the rising demand for coring activities in the region, which are essential for assessing subsurface conditions and ensuring the viability of geothermal projects. The country currently has 16 operational geothermal power plants, with capacities ranging from 2.5 MW to 377 MW, highlighting its commitment to harnessing renewable energy. Similarly, Eastern Africa holds an estimated geothermal capacity of around 15,000 MW. Kenya leads the region with several geothermal plants situated in high-enthalpy areas along the Kenya Rift. Over the next decade, the region is expected to witness the addition of approximately 4,000 MW of geothermal capacity, as nations like Rwanda, Ethiopia, Djibouti, and Tanzania continue to invest in geothermal energy development. The ongoing and planned projects across Indonesia and Eastern Africa not only signify growing interest in sustainable energy but also create opportunities for expanded coring activities. Continued geothermal development in these regions may pave the way for potential energy exports, attract greater foreign investment, and promote technological advancements in exploration, particularly in subsurface evaluation and coring solutions.

Major oil companies are increasingly reallocating their budgets from traditional exploration and production (E&P) operations toward renewable energy projects. This strategic shift aligns with the global transition to lower-carbon energy systems, where the reliance on hydrocarbons is gradually diminishing. The share of fossil fuels in the global primary energy mix, which stood at around 80% in 2019, is projected to decline significantly to between 55% and 20% by 2050. In contrast, the contribution of renewables is expected to grow substantially from approximately 10% in 2019 to between 35% and 65% by mid-century. This transition is primarily driven by the improving cost competitiveness of renewable technologies and strengthened by government policies promoting clean energy adoption. As renewables become more economically viable and policy-backed, oil and gas companies are scaling down their exploration activities. Consequently, the demand for coring services is witnessing a decline. With energy companies focusing more on solar, wind, hydrogen, and other alternative sources, the traditional upstream sector is undergoing a transformation. This evolution is reshaping investment priorities, which is impacting the equipment and services tied to oil and gas exploration, including coring. This shift is likely to increase coring activities in geothermal and CCS projects.