Category description

Conductor Casing / Pipe is a large diameter pipe 18" to 36" and is the first interface between surface and subsurface. It serves many purposes, such as prevent well collapse, protection against subsurface shallow gas pockets (accumulation), fluid circulation and general support for drilling a well.

Offshore, a conductor could be installed either by a drilling rig (as a free flow) or using hammering equipment, to hammer the conductor to the soil. In certain projects, conductor is used as a leg / foundation for a small offshore platform.

Hammers could be hydraulic or diesel and of various weight rating. There are less than 4 manufacturers of oilfield hammers worldwide, who do not provide the services directly.  In addition, guide shoes for abrasive and / or hard formations, directional shoes, drive-pipe, whipstocks and other pipe handling equipment and cutters are required for hammer services to install conductors.

As a standard practice, a conductor drivability engineering study is conducted prior to any conductor installation. Coupled with efficiency installation job, this allows installing a conductor with a perfect structural integrity.

Risks & Opportunities

Due to high costs of installation (drilling spread cost) reliability of hammer equipment is critical

Supply & Demand Dynamics

Demand 
Demand of hammer services is primarily driven by offshore field development activities. Other marine industries such as wind farms, bridge construction and other civil construction, have a significant impact on the demand for hammer equipment. 


Supply 

Historically, CIS / Weatherford, Frank Casing and Baker Hughes have been the dominant players. MENCK GmbH, IHC Hydrohammer, Delmag and Dawson the key manufacturers of oilfield hammer equipment. 

External Scanning


 
New Entrants is Low 
  • Low growth market
  • CAPEX intensive 
  • Niche market 
 
Supplier power is Medium
  • A few suppliers 
  • No product differentiation 
  • Third party equipment 
Competitive Rivalry 
  • Highly competitive 
  • Equipment manufactured by 3rd parties 
  • Market share battles 
Power of Buyer is High 
  • Many providers 
  • Spend might be important to suppliers 
  • Can integrate or outsource  
 
Substitution  
  • Technically may  not work 
 


Portfolio Positioning



  • ROUTINE 

High
Low
High

Cost & Price Analysis

With a reduction in new field development activities worldwide, prices for hammer services are expected to exhibit a significant downward trend due to significant underutilization of capacity ( fleet of hammers).