Conductor Casing / Pipe is a large diameter pipe 18" to 42" 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 into the soil. In certain projects, the 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 4 major 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
The demand for hammer services is primarily driven by offshore field development activities. In the short term, the demand originated from the oil industry will remain low. Yet, other marine industries such as wind farms, bridge construction and other civil construction, have a significant impact on the demand for hammer equipment. This source of demand is expected to grow in in 2018-2020, thus increasing utlization of hammer equipment.
Historically, CIS / Weatherford, Frank's Casing and Baker Hughes have been the dominant players. MENCK GmbH, IHC Hydrohammer, Delmag and Dawson the key manufacturers of oilfield hammer equipment.
New Entrants is Low
- Low growth market
- CAPEX intensive
- Niche market
Supplier power is Medium
- A few suppliers
- No product differentiation
- Third party equipment
- 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
- Technically may not work