Offshore Drilling Market Forecasts to 2028 – Global Analysis By Service (Subsea Production and Processing, Logging While Drilling, Directional Drilling), Rig (Jack Up Rigs, Drill Ships, Semi-Submersible Rigs), and By Geography

Offshore Drilling Market Forecasts to 2028 – Global Analysis By Service (Subsea Production and Processing, Logging While Drilling, Directional Drilling), Rig (Jack Up Rigs, Drill Ships, Semi-Submersible Rigs), and By Geography

According to Stratistics MRC, the Global Offshore Drilling Market is accounted for $1.19 billion in 2022 and is expected to reach $1.89 billion by 2028 growing at a CAGR of 8.1% during the forecast period. Offshore drilling is a mechanically held procedure where a well is bored below the seabed. It is normally done in order to see the sights for and consequently take out petroleum that lie in rock that are formed under the seabed. Generally, it represents penetrating exercises on the mainland rack anyway the term can likewise be connected to boring in lakes, inshore waters and inland oceans.

The offshore drilling sector is dominated by Switzerland-based contractor Transocean Ltd. In 2020, the company reported a revenue of neatly 3.2 billion U.S. dollars. Unlike its competitors, Transocean was able to increase its annual revenue in the difficult business year. As many stationary rigs will reach the end of their lifecycle and resources of previously productive oilfields are depleted, the market value of offshore decommissioning worldwide is expected to increase to 8.3 billion U.S. dollars by 2024.

Market Dynamics:

Driver:

Massive Economic Activity

The world is around through a massive economic transition stage due to technological advancements like Internet of Things, robotics, artificial intelligence (AI) etc. Furthermore, the wide-ranging demand for consumer goods because of growing purchasing capacity is likely to bode well for the market. Developed and emerging economies are expansively investing in infrastructure, welfare schemes, and innovation & technology, which encourage the demand for hydrocarbons. Consequently, local players are increasing exploration & production activities to meet the domestic market and decrease imports of oil and gas.

Restraint:

Devastating Environmental Impacts

The market point of view is likely to hamper due to the grave threats that offshore drilling actions cause on the environment. One of the major risks is oil spills that impose durable harm on ocean ecosystems. The toxic materials can bio accumulates and bio magnify, cause irretrievable harm to marine organisms. Thus, these ill effects on marine ecology may restrain the growth of the market in the upcoming future.

Opportunity:

Recovery of Crude Oil Prices

The crude oil prices were recovered and market experts expect that offshore drilling market will be a money-making sector and will release up many opportunities for the key players. With lots of deepwater and ultra-deep drilling projects occurrence across the world, the Offshore Drilling Rigs Market Growth will be balanced throughout the forecast period.

Threat:

Fluctuations in prices of crude oil

Crude oil price fluctuations have significant impact on oil and gas companies' productivity and performance. Oil and gas companies place their exploration & production projects on cleave to owing to the volatility of import costs. During low-price scenarios, incomplete crude oil production projects shaped low revenues, making it tricky for companies to continue competitive in the market. In addition, exploration & production projects are finished when the revenue generated is adequate for oil and gas companies to make profit. The improbability in crude oil prices will harm investment in E&P projects and its industry's growth.

Covid-19 Impact

The eruptions of COVID-19 pandemic have affected the rise of the Offshore Drilling Rigs Market harmfully. The gas and oil industries were shut up that resulted in diminish of demand for offshore drilling rigs all over the world. Many gas and oil extraction projects got postponed during the pandemic which hindered the growth of this market. In the post pandemic period, the Offshore Drilling Rigs Market Size is expected to grow increasingly. The prices of oil were declined due to the COVID-19 occurrence. The recovery of prices of the crude oil is anticipated to be lucrative for offshore drilling rigs market.

The rig segment is expected to be the largest during the forecast period

Based on rig segment, Jack-up rigs are offshore rigs that are capable of with legs which can be lowered to the ocean floor such that the foundation is recognized highest to maintain the drilling platform. Jack up rigs is offshore rigs frequently furnished with legs that can be brought down to the marine to such a point that an implementing set up to help the drilling stage. Jack up rigs knows how to work in water profundities going from 350 to 450 feet. These rigs are mobile, self-elevating drilling platforms that include a floating hull fixed with three to four legs movable legs, capable of securing and raising its hull over the ocean floor, after reaching the desired location. Jack-up rigs are often used for shallow wells owing to the structural stability concerns in deepwater.

The application segment is expected to have the highest CAGR during the forecast period

Based on application, the ultra-deepwater depths scope above 1000 meters. The mounting environmental concerns about drilling offshore or on shallow water depths have disposed the operators in the direction of ultra-Deepwater depths. The advancements in drilling technology, floating production and drilling units have additional supported this shift in searching activities from shallow waters to ultra-deep waters. Still, the huge capital investments for drilling in ultra-deepwater are at a distress for operators that are anticipated to hamper the segmental expansion.

Region with highest share:

The Middle East & Africa region is anticipated to have the highest share of Offshore Drilling Rigs Market Growth due to the attendance of significant reserves of offshore natural gas and oil reserves. The biggest gas field in the world, the South Pars Gas Complex is positioned in the Persian Gulf, Middle East. A new oil reserve is being situated and offshore drilling projects are taking place in different countries of Africa. Exploration activities are mainly focused on the deep and ultra-deep offshore, even though a few onshore explorations are also happening. Therefore, factors that are upcoming offshore exploration and production activities, are expected to drive add up to of offshore drilling in the region during the forecast period.

Region with highest CAGR:

Asia pacific is expected to have a highest CAGR growth during the forecast period. The only region of largest consumer of gas and oil is Asia pacific. With a raise in population, industrialization, and economic growth, there is a rise in insist for oil and natural gas. The market player has adopted various strategies like contract extensions and agreement to develop the productivity of oil and to fulfil the order for offshore drilling. Some of the key aspects favouring the growth of oil and gas industry in regional market are rapid infrastructure development, increasing drilling and well-intervention activities and technological advancements. The increasing population and the resultant increase in energy demand are expected to boost the market growth during the forecast period.

Key players in the market

Some of the key players profiled in the Market include Schlumberger Ltd., Halliburton Co., Fluor Corporation, Baker Hughes Inc., Transocean Ltd., Ensco PLC., Seadrill Ltd., Noble Corporation, Diamond Offshore Drilling Inc., Rowan, Saipem, Weatherford International Ltd., Stena Drilling, China Oil Field Services Ltd, Nabors Industries Ltd, Fred. Olsen Energy, KCA Deutag, Parker Drilling, Maersk Drilling, Scientific Drilling International, Paragon Offshore PLC, Archer Limited, Superior Energy Services.

Key Developments:

In January 2022, Transocean had announced that Equinor will use Transocean Enabler semi-submersible drilling unit for drilling of a carbon injection well. It will use a sidetrack to drill another carbon injection well that was drilled earlier. The drilling of these carbon injection wells will be done as a part of the Northern Lights Carbon Capture Storage Project.

In June 2017, Saipem and Eni ink a deal for offshore drilling in Mozambique by using drillship Saipem 12000. Moreover, Saipem has been awarded other offshore drilling contracts worth USD 230 million.

Service Covered:
• Subsea Production and Processing
• Logging While Drilling
• Directional Drilling
• Offshore Contract Drilling
• Measurement While Drilling

Rig Covered:
• Jack Up Rigs
• Drill Ships
• Semi-Submersible Rigs
• Tender
• Platform Rig
• Inland Barge
• Drill Barge

Application Covered:
• Ultra-Deep Water Drilling
• Shallow Water Drilling
• Deep Water Drilling

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements