"The HDD market is growing tremendously," notes David Abbott from the San Diego office of Jason Consultants International Inc. "There are many more manufacturers and there are many more contractors. This means the market is becoming more competitive and therefore prices are dropping. I guess that's a good thing for the world but not necessarily a good thing for some of the individuals."
Competition also spurs technological advances. "It leads to innovation," Abbott explains. "The industry will keep stretching the envelope. In the case of horizontal directional drilling, the capital expenditure is not terribly high, and the rigs are fairly simple to use so everyone is looking for an advantage."