Offshore Drilling Market by Application and Geography — Forecast and Analysis 2019–2023
The offshore drilling market has the potential to grow by $38.53 billion during 2019–2023. The market’s growth momentum will accelerate throughout the forecast period because of the increase in year-over-year growth.
This report provides a detailed analysis of the market by application (shallow water, deepwater, and ultra-deepwater) and geography (APAC, Europe, MEA, North America, and South America). Also, the report analyzes the market’s competitive landscape and offers information on several market vendors including Baker Hughes, Halliburton, National Oilwell Varco, Schlumberger, TRANSOCEAN, and Weatherford.
The rise in deepwater and ultra-deepwater E&P activities is one of the critical reasons that will drive the offshore drilling market. Oil and gas companies are shifting to deepwater and ultra-deepwater resources from shallow water resources due to the presence of vast untapped reserves. However, one of the disadvantages of obtaining oil from ultra-deepwater resources is the cost involved in the process. Also, the weather conditions are harsh in the ultra-deepwater environment. This is encouraging companies to invest more to speed up their drilling and production operations in areas with vast oil reserves such as Brazil and GOM. The rise in offshore projects will boost E&P activities such as offshore drilling activities in deep water and ultra-deepwater locations.
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The costs incurred in offshore drilling projects are higher than that of onshore drilling projects due to the complexities. The profitability rates of offshore drilling projects have been improving leading to an increase in demand for offshore projects. For instance, capital investments in the Norwegian and GOM offshore, which once required a breakeven oil price of USD 60/bbl to USD 80/bbl, are now claimed to be robust at USD 25/bbl to USD 40/bbl. As the costs of offshore drilling projects are coming down and more offshore projects are expected to begin. This will drive the offshore drilling market to grow at a CAGR of almost 9% during the forecast period.