It is reported that the drill bit classification mainly includes two kinds of cone drill bits and diamond drill bits,.

It is understood that the cone bit is the most widely used traditional drill bit in oil drilling, and the amount of work done by the cone in oil and gas drilling accounts for about 80%-90%.

The reporter learned that the price of roller cone bit of Jiangling shares averaged 2-3 million yuan, the current production capacity was 50,000, the actual production capacity was about 40,000, the domestic market share was stable at over 60%, and the international market was stable at 10 %the above. As the company introduced technology from the US Hughes company very early, after years of research and development improvements, the current product quality has been comparable to foreign countries, but the price is only 1/3 of Hughes, which makes it face the domestic competitors have very High technical barriers have obvious price advantages in the face of foreign competitors.

The diamond bit product of Jiangling shares is generally priced at more than 100,000, and some even reach 500,000, but the output is only 1,000, mainly based on high-end products. At present, the company is planning to increase investment in R&D of diamond drill bits, increase production capacity and increase sales scale.

Insiders pointed out that the drill bit is an essential product and consumable product in the drilling and production of LPG, accounting for about 4% of the drilling cost. The future growth in investment in oil and gas exploration will inevitably drive the growth in demand for drills.

It is worth noting that Jiangling`s shares are still breaking through the business model of single product sales and developing to the [product sales + oilfield service" model. This is very consistent with the development trend of the industry in the eyes of observers.