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Offshore Drilling Market to Have a CAGR of 8.7% During 2023-2030; Surging Number of Investments in Drilling to Create Way for Market Growth

April 18, 2023 | Energy & Power

The global offshore drilling market size is projected to show strong growth by attaining USD 65.63 billion by 2030. Fortune Business Insights™ in its report titled “Offshore Drilling Market Size, Share & COVID-19 Impact Analysis, By Rig Type (Drillships, Semisubmersibles, and Jackups), By Water Depth (Shallow Water, Deepwater, and Ultra-Deepwater), and Regional Forecasts, 2023-2030” observes that the market size in 2022 stood at USD 33.22 billion and is projected to reach the valuation of USD 36.52 billion in 2023. With the advent of drilling technology, production of oil has increased. Increasing trend of unmanned offshore oil is expected to propel the drilling demand. Growing number of investments with surging demand for oil and gas is set to drive the market growth. Massive demand for hydrocarbons for heat and electricity generation is set to propel the drilling demand.


Acquisition of Saipem SpA by KCA Deutag Set to Pave Way for Market Amplification


In October 2022, KCA Deutag announced the acquisition of the main phase of onshore drilling business of Saipem SpA. This first phase includes the UAE, Saudi Arabia, with Kuwait and Africa anticipated to follow later in Q4 2022. The acquisition of the Latin America business together with the rigs in Kazakhstan and Romania will complete in 2023. The growth strategy of the company includes the expansion strategy and engaging in some of the core markets such as in the Middle East.


Decline in Day Rates of Offshore Drilling Led to Negative Market Growth


From 2020 to 2021, every country was hit with the COVID-19 pandemic. The industrial participants witnessed challenges due to lockdowns. Decline in oil demand and the considerable surplus in oil supply resulted in considerable reduction in demand and day rates for drilling. This led to a decline in demand for oil and gas. The duration and severity of the outbreak and its impact on global oil demand, volatility in oil and natural gas prices, and the level of disruption among stakeholders in the industry led to the decline in market growth.


To get a detailed report summary and research scope of this market, click here:


https://www.fortunebusinessinsights.com/offshore-drilling-market-102636


Increasing Trend of Unmanned Offshore Oil Platforms to Propel Market Growth


Increasing trend of unmanned offshore oil platforms is set to offer opportunities for the offshore drilling market growth. Reduction in production costs through Unmanned Wellhead Platforms (UWHPs) could revolutionize the offshore oil industry. The benefits of automation include improvements in efficiency and safety. In July 2022, China National Offshore Oil Corporation stated that China has built its first unmanned offshore oil platform at Enping Oilfield in the South China Sea. The platform, EP10-2, has no offices or living quarters, making it more inexpensive to build and maintain, allowing oil companies to drill fields that aren't cost-effective for traditional rigs. Its deck size is compact and its total weight is only a third of conventional platforms. It can also work in extreme conditions, such as typhoons, as it is primarily remote-controlled.


Demand for Hydrocarbons for Heat and Electricity Generation to Give Rise to Market Growth


Increasing demand for hydrocarbons for electricity and heat generation is anticipated to drive market growth. Heat and electricity are generated by using conventional fuel. Following this trend, operators are likely to invest in unexploited reserves of hydrocarbon, which is set to boost the market. Furthermore, many potential hydrocarbon reserves are under the sea. The hydrocarbon industry has developed techniques, which are for offshore conditions to find oil & gas and produce them successfully.


Increase in the usage of electric vehicles is expected to hamper the oil & gas and drilling demand.


Increasing Number of Drilling Services Offered by Market Players to Drive Market Share


Transocean is leading the market amongst all players. The company is engaged in contract drilling services within a single operating segment, which involves contracting its mobile offshore drilling rigs, related equipment, and work crews to drill oil & gas wells. It specializes in technically demanding regions of the global business with a particular focus on ultra-deepwater and harsh environment drilling service. On February 14, 2022, Transocean owned or had partial holding interests in and operated a fleet of 37 mobile offshore drilling units, which include 10 cruel environment floaters and 27 ultra-deepwater floaters.


Notable Industry Development



  • March 2022: Nabors Industries Ltd. invested USD 8 million in GA Drilling for the expansion of deep drilling technologies to develop super-hot and ultra-deep rock reservoirs. Through the investments in several clean energy companies, Nabors begun to build multiple ecosystems of complementary technologies, which can benefit from synergies with Nabors' existing operations and capabilities.


List of Key Companies Profiled in the Report:



  • Saipem S.p.A (Italy)

  • Maersk Drilling (Denmark)

  • Nabors Industries Ltd (U.S.)

  • KCA Deutag (U.K.)

  • Transocean (Switzerland)

  • Seadrill (Bermuda)

  • Valaris plc (U.K.)

  • Odfjell Drilling (U.K.)

  • Pacific Drilling (U.S.)

  • Borr Drilling (Bermuda)

  • Diamond Offshore Drilling, Inc. (U.S.)

  • Noble Drilling (U.K.)

  • COSL – China Oilfield Services Limited (China)

  • Shelf Drilling (UAE)

  • Archer Well Company (Bermuda)


Further Report Findings



  • The market in Asia Pacific stood at USD 14.11 billion in 2022 and holds the largest offshore drilling market share.

  • Latin America is expected to grow the fastest in the coming years due to increasing deep drilling activities in Mexico and Brazil. On September 7, 2022, Reach Subsea signed contracts with the Brazilian government worth USD 19.8 million for offshore oil & gas exploration in Brazil.


Table of Segmentation






















































ATTRIBUTE



  DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Growth Rate



CAGR of 8.7% from 2023 to 2030



Unit



Value (USD Billion)



Segmentation



By Rig Type, Water Depth, and Region



By Rig Type




  • Drillships

  • Semisubmersibles

  • Jackups



By Water Depth




  • Shallow Water

  • Deepwater

  • Ultra-deepwater



By Geography




  • North America (By Rig Type, By Water Depth, By Country)

    • U.S.

    • Canada



  • Europe (By Rig Type, By Water Depth, By Country)

    • U.K.

    • Norway

    • Rest of Europe



  • Asia Pacific (By Rig Type, By Water Depth, By Country)

    • China

    • India

    • Australia

    • Malaysia

    • Indonesia

    • Rest of Asia Pacific



  • Latin America (By Rig Type, By Water Depth, By Country)

    • Brazil

    • Mexico

    • Rest of Latin America



  • Middle East & Africa (By Rig Type, By Water Depth, By Country)

    • Saudi Arabia

    • UAE

    • Nigeria

    • Angola

    • Rest of Middle East & Africa




Offshore Drilling Market
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  • 2022
  • 2019-2021
  • 185

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