Norway Oilfield Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Norway Oilfield Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Norwegian oilfield equipment market is expected to register a CAGR of over 2% during the forecast period. During the Covid -19 pandemic, governments imposed strict lockdown and travel restrictions, resulting in lower demand for oil & gas worldwide. This affected the flow of investment in Norway's oil & gas industry. Factors such as the increasing exploration and production activities due to rising crude oil and natural gas demand coupled with reducing dependency on Russian crude oil and natural gas are likely to drive the market during the forecast period. However, volatile oil and gas prices are likely to restrain the growth of the Norway oilfield equipment rental services market in the coming years.

Key Highlights

• The drilling equipment segment is expected to dominate the market in the forecast period. Norway has a high number of drilling activities, and it is likely to grow in the near future due to a surge in investment in offshore activity.
• The increasing oil and gas discoveries in the deepwater and ultra-deepwater in the North Sea regions like Norway and the United Kingdom are expected to create a significant opportunity for the market players during the forecast period.
• Increased investment in oil & gas exploration and production in the country, coupled with increased demand from the nearing countries due to Russia and Ukraine conflict, is expected to boost the demand for oil field equipment in the country during the forecast period.

Key Market TrendsThe Drilling Equipment Segment is Expected to Dominate the Market

• Norway has witnessed a slowdown in oil & gas-related activities in recent years, mainly due to maturing oil and gas fields. The crude oil production has been relatively stable between 1,762 thousand barrels per day and 2,040 thousand barrels per day between 2021 and 2011. However, as of 2021, Norway is the world's third-largest exporter of natural gas, behind Russia and Qatar.
• The country has supplied 20-25% of the European Union and the United Kingdom's gas demand. Nearly all oil and gas produced on the Norwegian shelf is exported and combined; oil and gas exceed half of the total value of Norwegian exports of goods. This makes oil and gas the most important export commodities in the Norwegian economy.
• On the upstream front, oil and gas production in the country comes only from the offshore sector. All offshore oil and natural gas leasing and development activities in the country occur in the North Sea.
• As of May 2022, on the Norwegian shelf, there are around 12 concrete facilities (Heidrun A and Troll B are floating), 64 fixed steel facilities, and 21 steel floating facilities in operation. In addition, there are nearly 450 subsea installations. The concrete facilities account for about 70% of the total weight of facilities on the shelf.
• Furthermore, many private companies are investing in offshore drilling activities in the country. For instance, Vaar Energi has launched a tender for a contract covering the fabrication and installation of subsea equipment for its operating portfolio. The company plans to activity on the Norwegian Continental Shelf in the coming years, particularly in the North Sea and the Barents Sea, and the life extension of the Balder field.
• Thus, a higher number of existing oil and gas activities and rising exploration investment are anticipated to drive the market in the forecast period.

Increased Oil & Gas Discovery

• Norway is expected to maintain its dominance in the European region during the forecast period. Furthermore, Russia's invasion of Ukraine has led to a significant rise in oil & gas prices worldwide. This increased price has resulted in higher investment in the country's exploration and production of oil & gas.
• Moreover, many European countries are implementing various sanctions on Russia to stop Russian aggression. This includes reducing the dependency on Russian crude oil and natural gas. This is one of the driving factors for the oil & gas investment in Norway, as Norway is one of the world's leading exporters of natural gas.
• Investments in the oil and gas sector are responsible for about one-fifth of the country's productive capital investments. As per the Norwegian Oil and Gas Association, significant investments were made in exploration, field development, transport infrastructure, and other facilities in 2020. Also, in 2021 the investments, excluding exploration, totalled around NOK 147 billion.
• Four new fields came on onstream in 2021: Martin Linge, Duva and Solveig in the North Sea and Ærfugl Nord in the Norwegian Sea. In October 2021, production from Yme started again after a field redevelopment. As of December 2021, six field developments were ongoing: four in the North Sea, one in the Norwegian Sea and one in the Barents Sea.
• With 18 new discoveries made in 2021, 12 of them in the North Sea, 3 in the Norwegian Sea, and 3 in the Barents Sea. The discoveries have a preliminary total estimate of 85 million standard cubic meters of recoverable oil equivalents. The most significant discoveries are 6507/4-2 S (Dvalin Nord) in the Norwegian Sea, 31/2-22 S (Blasto), 25/8-20 S and 25/8-20 B (Prince/King) in the North Sea.
• Thus, this development in new discoveries in the oilfield is expected to significantly boost the demand for equipment in the country during the forecast period.

Competitive Landscape

The Norway oil fields equipment market is highly fragmented. Some of the key players in the market include Weatherford, International PLC, Schlumberger Limited, Baker Hughes Company, Halliburton Company, and TechnipFMC plc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.