Offshore Drilling Market Industry Growth by Applications (shallow water, deep water, and ultra-deepwater) | Global Forecast 2019-2023

Offshore drilling market analysis indicates growth will be driven by the rise in deepwater and ultra-deepwater E&P activities. Offshore drilling market industry growth will also be impacted by the declining costs of offshore projects.

A key factor driving the growth of the market is the increasing deepwater and ultra-deepwater E&P activities. Due to vast untapped reserves, deepwater and ultra-deepwater projects are expected to increase during the forecast period because of the rising crude oil prices. Hence, companies have expanded their drilling and production operations in areas with large oil reserves such as the GOM and Brazil. Furthermore, it is expected that the global offshore deepwater oil production will increase by 2.7 mbpd between 2017 and 2040. Offshore investments are also expected to grow at a CAGR of over 11% during 2018-2021. Subsequently, the rise in investments in offshore projects will propel E&P activities in deepwater and ultra-deepwater locations. Hence, the increase in E&P activities in deepwater and ultra-deepwater resources will drive the global offshore drilling market during the forecast period.

As per Technavio, the declining cost of offshore projects will have a positive impact on the market and contribute to its growth significantly over the forecast period. This global offshore drilling market 2019-2023 research report also analyzes other important trends and market drivers that will affect market growth over 2019-2023.

Global offshore drilling market: Declining costs of offshore projects

Because of the complexities and the need for additional equipment and methods for processing and transportation after extraction, the expenses incurred in offshore drilling projects are higher than that of onshore drilling projects. Offshore drilling projects need a longer timeline than onshore drilling projects. Also, most of the offshore oil and gas drilling contracts last several years. However, at present, the costs of offshore projects are decreasing as designs are being standardized, simplified, and downsized, and a large projection in the market for offshore equipment and services is helping, reduce costs. Also, as crude oil prices have started rising, more investments are expected in offshore oil and gas projects, which will drive the global offshore drilling market during the forecast period.

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Global offshore drilling market: Segmentation analysis

This market research report segments the global offshore drilling market by applications (shallow water, deep water, and ultra-deepwater) and geographical regions (APAC, Europe, MEA, North America, and South America).

The shallow water segment held the largest market share in 2018. Offshore drilling in shallow water is relatively safe when compared with deepwater and ultra-deepwater, as it reduces the possibility of oil spills. This makes the process safe and economically feasible.

APAC held the largest market share in 2018. There has been an increase in demand for offshore oil and gas production to suffice the energy needs, especially from the developing countries. Moreover, rising fuel consumption is also driving the need for offshore drilling.

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Some of the key topics covered in the report include:

Market Landscape

·         Market ecosystem

·         Market characteristics

·         Market segmentation analysis

Market Sizing

·         Market definition

·         Market size and forecast

Five Forces Analysis

Market Segmentation

Geographical Segmentation

·         Regional comparison

·         Key leading countries

Market Drivers

Market Challenges

Market Trends

Vendor Landscape

·         Vendors covered

·         Vendor classification

·         Market positioning of vendors

·         Competitive scenario