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

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

The Norwegian oilfield equipment rental services market is expected to register a CAGR of over 3% during the forecast period of 2020-2025. Factors, such as the increasing exploration and production activities due to rising crude oil and natural gas demand, are likely to drive the market during the forecast period. However, volatile oil and gas prices are leading to the uncertainty among oil and gas operators, which is likely to restrain the growth of the Norwegian oilfield equipment rental services market in the coming years.

Key Highlights

• The drilling rigs segment is likely to dominate the market during the forecast period, due to the increasing exploration and production activities.
• Advancements in the deepwater and ultra-deepwater drilling activities in regions, like Norway and the United Kingdom, are expected to create an ample opportunity for the market players in the coming years.
• The upstream sector is expected to drive the Norwegian oil and gas industry, owing to increased investment by oil companies. Moreover, discoveries are likely to propel the market during the forecast period.

Key Market TrendsDrilling Rigs to Dominate the Market

• After the oil price crisis in 2014, the rig count, both onshore and offshore, declined significantly during 2014-2016. However, the period of 2017-2018 was characterized by the recovery in the oil price, resulting in significant recovery in onshore rig count. The offshore activity generally has longer lead times. Also, given the volatility in oil prices, combined with high CAPEX requirements for offshore projects, the offshore drilling activity did not recover until 2019.
• The offshore operators have committed to significant investments in field developments. As of 2018, Norway was a leader in the offshore drilling market, in terms of the number of planned and under-pipeline projects in Europe.
• Amid the reducing reserves in the North Sea, drilling activity is on ever high given the attempts to find more oil and gas in deeper waters. Norway is increasing its drilling activity every year in search of more oil and gas, thus, acting as a major driver for this market.
• As the crude oil prices are increasing, investment in the oil and gas industry is expected to grow significantly and bring several projects online, thereby, driving the Norwegian oil field equipment rental services market.

Upstream Sector to Drive the Market

• Norway is expected to maintain its dominance in the European region during the forecast period. The increased pressure on oil and gas companies to do more with limited money and become more cost-efficient has been driving the market.
• Norway’s oil and gas industry is now back on its feet. Oil companies increased their spending for the first time in 2018, since 2014. As of December 31, 2018, there were 85 discoveries where the licensees have yet to submit a PDO to the government. The total investment required to develop the whole portfolio is estimated to be in the order of NOK 400 billion in 2018.
• In 2019, Norway drilled more wells than ever, i.e., around 130 wells, out of which 55 were for exploratory drilling in a bid to find new oil and gas fields to compensate the country’s declining oil and gas production. The number of drilled wells rose to 16% compared to 2018.
• The new market conditions forced the industry to cut costs and improve operational efficiency, which, in turn, made several unprofitable projects feasible. This trend is expected to increase the demand for oilfield equipment rental services in the country.

Competitive Landscape

The Norwegian oilfield equipment rental services market is partially fragmented, with the presence of a number of small and big players in the market. Some of the key players in the market include Transocean Ltd, Seadrill Ltd, Schlumberger Limited, Baker Hughes Company, and Weatherford International PLC.

Additional Benefits:

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

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