Market Research Report on Jackup Rigs By Type (mat-supported jackup, independent legged jackup), By Operation Depth (deep water, ultra-deep water), Global Forecast to 2027 by Application (Oil & Gas and Offshore Wind Turbine Installations) and by Region

Jackup Rigs Market Research Report Information By Type (Independent legged-jackup, Mat-supported jackup), By Operation Depth (Shallow Water, Deep Water, and Ultra-deep Water), By Application (Oil & Gas and Offshore Wind Turbine Installations) and By Region - Global Forecast to 2027

The Jackup Rigs The market industry is anticipated to experience a compound annual growth rate (CAGR) of 5.4% from 2021 to 2020. A jack-up rig is a mobile offshore drilling unit (MODU) that is employed for exploratory drilling and production activities in shallow to intermediate water depths, typically up to approximately 500 feet (150 meters). It is frequently employed in offshore drilling operations within the oil and gas sector.

The roll-out of Covid-19 vaccines has lifted movement restrictions and, consequently, oil demand, resulting in a more than 60% increase in crude oil in 2021. Major economies are currently experiencing an energy crisis that shows no signs of abating, even though major oil producers are remaining steadfast in their commitment to limiting their supply. As a result of the increased number of vaccinated individuals who are emerging from coronavirus lockdowns, prices have increased, which has contributed to a recovery in economic activity. Simultaneously, the global commodity prices, which encompass the fuels utilized for power generation, including coal and gas, have experienced a significant increase from Asia to Europe. In the interim, the Chinese government has directed miners to increase coal production in response to the recent increase in electricity prices. The global oil demand is anticipated to increase by 5.5 mb/d in 2021 and 3.3 mb/d in 2022, reaching 99.6 mb/d, which is marginally above pre-Covid levels. The global energy demand will increase in tandem with the growth of the global economy and society. This makes oil a desirable commodity for power generation and maintains economic stability. Consequently, the increased demand is driving crude markets upward. The production of oil and gas will remain a critical component of the global energy supply, with a projected increase in total production of 17 million barrels of oil equivalent per day by 2025. Although unconventional onshore production has experienced substantial growth, offshore production currently accounts for 28% of total oil and gas production. It is anticipated that offshore production will generate an additional 5 million barrels of oil equivalent growth by 2025. Therefore, to address the disparity between energy supply and demand, oil and gas companies will intensify their offshore exploration efforts, which will subsequently increase the demand for jackup platforms worldwide.

Market Segment Insights

The Jackup Rigs Market has been segmented into two types: independent legged-jackup and mat-supported jackup.

The Jackup Rigs Market is classified as shallow water, deep water, and ultra-deep water based on type.

On the basis of application, the market is segmented into offshore wind turbine installations and oil & gas.

Regional Perspectives

The region is expected to become the largest expanding global market for jackup rigs due to the substantial jackup rigs industry in North America. The Gulf Coast region of the United States is the site of most drilling activity in support of the offshore oil and gas industry. This activity is primarily concentrated in Alabama, Mississippi, Louisiana, and Texas. In the past, most of the shallow water drilling capacity in the Gulf of Mexico has been supplied by the jackup construction industry in the United States. Nevertheless, shallow water drilling in the US Gulf of Mexico (GOM) is on the decline, and capital has been directed to onshore natural gas fields, which are more cost-effective to drill, and the more promising deepwater GOM, which is prone to oil. While deepwater production is anticipated to have a promising future, jackups that are capable of drilling in these water depths are increasingly being employed in the United States.

Major Players

Eurasia Drilling (UK), COSL (UK), Nabor Ltd. (India), Valaris (China), Seadrills (Bermuda), BORR Drilling (Bermuda), GSP Offshore (Constanţa), Noble Corporation (Cayman Islands), and Maersk Drilling (Denmark) are the primary participants in the market.