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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.
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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
List of Key Companies Profiled in the Report:
Further Report Findings
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 |
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By Water Depth |
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By Geography |
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