High Voltage Cables Accessories Market Analysis

In-depth Analysis of High Voltage Cables Accessories Market Industry Landscape

The need for XLPE cables in the offshore oil and gas industry is predicted to steadily rise in the coming years. This is due to several factors such as the growing demand for electricity, a focus on harnessing wind power, and increased exploration and production (E&P) activities in the oil and gas sector. XLPE cables play a crucial role in transmitting electricity for various offshore operations related to power generation. Many companies engaged in oil and gas exploration are directing their efforts towards drilling and increasing oil and gas production, which is expected to drive the demand for XLPE cables.

For instance, the Oil and Natural Gas Corporation (India) gave the green light to the third phase development of the Mumbai High Field in 2014. The aim was to boost natural gas production to 5.253 billion cubic meters by 2030, thereby enhancing domestic offshore oil and gas production in India. In China, CNOOC ltd (China) made a significant announcement in December 2017 about the discovery of a mid-sized natural gas field in Bozhong, Bohai. In the US, W&T Offshore (US) reported an oil discovery in the Gladden Deep prospect in the Gulf of Mexico in June 2019. Furthermore, Chevron Corporation (US) in Australia unveiled the offshore development of the Gorgon natural gas project, with an estimated worth of USD 18-20 billion. Such developments in the oil and gas sector are expected to drive the demand for XLPE cables in offshore activities.

Additionally, according to the International Energy Agency (IEA), offshore wind energy is set to attract investments of around USD 1 trillion by 2040. Countries like China, France, and the US are actively working towards increasing the share of offshore wind energy in their power generation mixes. In China, the IEA predicts that the installation capacity of offshore wind energy will reach 110 GW by 2040. In France, Iberdrola, S.A. (Spain) is currently developing the Saint-Brieuc offshore wind farm in Brittany, France, which is expected to become operational in 2023. In the US, Ørsted A/S (Denmark) was chosen by the New Jersey Board of Public Utilities in June 2019 to kickstart the offshore wind farm project along the coast of Atlantic City. This global focus on offshore wind energy is anticipated to increase the demand for XLPE cables, facilitating the supply of electricity in both the oil and gas and power industries.