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Gas and oil prices change all the time, which is important for offshore drilling rigs. The energy market around the world has a big effect on how well the field does. More study and digging are likely to be done when the price of oil is high. When oil prices are low, on the other hand, research work slows down or stops, which means that drilling rigs are not needed as much. This mix between supply and demand sets the stages for how the market moves through cycles.
Offshore drilling rigs are bought and sold in a very different way when new technologies come out. Offshore drilling operations may change a lot in terms of how well and quickly they run as technology in the field grows. Here are two examples: more robotics and better technology for digging. There are always new technologies being developed by service providers and rig managers that can make digging safer, cut down on downtime, and make the whole process easier.
For the offshore drilling rig business, changes in the rules can mean a lot. The cost of digging may change if the government makes strict rules about safety and the environment. If companies have to buy new safety gear and take extra steps to follow these rules, it could hurt their bottom lines when they're offshore digging. Since politics and rules in key working zones are a worry, the oil and gas business doesn't know where to spend its money.
A lot of the time, politics get in the way of the market for offshore fishing rigs. It may be hard to get to or not as appealing to drill in some places because of foreign problems. Other places may have a lot of gas and oil. Changes in business ties, government rules, and world events can all lead to uncertainty. This can make it harder to make decisions about money and push back projects.
People who are new or well-known, big or small, can have an effect on how competitive the offshore drilling rigs business is. When businesses merge, buy other businesses, or make smart relationships, they often get better at what they do and move up in the market. Lots of people want to buy something, so companies may feel like they need to work together more and find new ways to get contracts.
Aside from that, how well the world economy is doing has a lot to do with whether offshore gas projects are a good idea. People use less energy when the economy is bad, which means that digging and researching projects might not be able to move forward. On the other hand, chances to fish off the coast tend to increase when countries get stronger and business activity rises, which means more energy is needed.
Lastly, the market for offshore drilling rigs is hard because a lot of things are at play. This is because of things like supply and demand, new technology, laws, worries about world politics, and business competition. As the world's energy market changes all the time, those who work in it need to be careful to spot opportunities and stay away from dangers.
Offshore Drilling Rigs Market Highlights:
Offshore Drilling Rigs Market Overview:
Offshore Drilling Rigs Market Size valued at USD 70.6 Billion in 2022. The Offshore Drilling Rigs market industry is projected to grow from USD 75.4 Billion in 2023 to USD 127.6 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.80% during the forecast period (2024 - 2032). Increased demand for natural gas and oil, rising offshore discoveries, and strict government regulations against onshore natural gas and oil projects are the key market drivers enhancing the growth of market.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
The deepwater and ultra-deepwater market will experience significant growth as a result of rising operational viability and accelerating technical advancement. This, in turn, should bolster the market attractiveness for offshore drilling rigs.
The development of offshore reserves, particularly those in deepwater and ultra-deepwater, is actively encouraged by new markets like Gabon, Senegal, Guyana, Trinidad & Tobago, Egypt, and the Mexican side of the Gulf of Mexico. In the future, operational companies are anticipated to benefit significantly from these efforts.
- May 2023
Kosmos Energy anticipates that this summer will see the start of development drilling for the Winterfell project in the US Gulf of Mexico (GoM). By the middle of the year, the partners intend to sign host facility and export agreements. Possibly after the end of the first quarter of 2024, the first oil. Around the end of the year, Phase 1 of the bp-operated Greater Tortue Ahmeyim LNG should start supplying the first gas offshore Mauritania and Senegal.
Offshore Drilling Rigs Market Trends
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Growing demand for natural gas and oil is driving the market growth
Market CAGR for offshore drilling rigs is being fueled by the growing demand for natural gas and oil. The rising utilization of natural gas as fuel in the past decade has shown an increase in the world's natural gas consumption. The rise in well intervention and drilling activities in the oil and gas sector fueled the growth of the offshore drilling market. The advancement in technology for search and development, improved control of environmental effects, growing efficiency, and a better understanding of the marine environment have effectively grown offshore drilling activities.
The requirement for natural gas is expected to rise over the forecast years because of the increase in fuel consumption in developing countries like China and India. The utilization of natural gas will be increased by 45 percent by 2040, providing growth potential for the power sector. The reserves in onshore wells are lesser than those in offshore wells. The upstream companies will utilize and produce these large reserves. Hence there will be a growth in demand for oil and gas, and more offshore drilling will take place. The fossil fuel requirement is rising drastically throughout the world, and exploration of hydrocarbons is mainly carried out by the leading companies to fulfill the demand for oil and gas. The companies are emphasizing increasing offshore drilling to explore oil and gas with the help of well-developed technology underneath the sea, as most potential hydrocarbons are beneath the sea.
Offshore drilling rigs are structure that provides broad facilities to drill wells, extract, store, and process petroleum and natural gas. The drilling rigs are used for offshore drilling to ease the operation without any difficulty, as offshore drilling needs a rigid structure due to extreme environmental conditions. The increased investment initiatives have increased the drilling and well intervention activities in the oil and gas sector, leading the growth in the offshore drilling market. Artificial neural networks, machine learning, and other industry 4.0 technologies have caused drilling operators to become more efficient and advanced the supply chain perspective on drilling sites; this is anticipated to increase drilling operations. Thus, driving the Offshore Drilling Rigs market revenue.
The foundation for expansion is the production of oil and gas; hydrocarbons are heavily used to manufacture goods, transportation, and other necessities. However, the demand-supply ratio is anticipated to be halted by the exponential growth in demand for conventional fuel with urbanization, globalization, and fast economic growth. One of the most constant energy sources that attracts investors is offshore hydrocarbons.
Offshore Drilling Rigs Market Segment Insights:
Shallow Water, Deep Water, and Ultra-Water are the operational depth-based segments of the offshore drilling rigs market. The market is dominated by the shallow water category.
Jack-Up Rigs, Drillships, and Semi-Submersible are among the types of offshore drilling rigs included in the market segmentation. The market was driven by the jack-up rigs sector, which generated the greatest revenue and is expected to increase at a CAGR of 3.13% over the next several years.Â
- January 2023
A three-year agreement for the Trident II jack-up rig has been inked between the Indian national oil corporation ONGC and offshore drilling rig owner Shelf Drilling.
The deal pertains to the Trident II rigs operating in the Mumbai High region off the coast of India. Following a time out of service to prepare for the new three-year award, the rig will carry on with its current contract's operations. This is the third contract Shelf Drilling has landed with ONGC in the past month.
Offshore Drilling Rigs Type Insights
The Offshore Drilling Rigs market segmentation, based on type, includes Jack-Up Rigs, Drillships, and Semi-Submersible. The jack-up rigs segment dominated the market, accounting for the highest market revenue anticipated to grow at a CAGR of 3.13% throughout the forecast years. Jack-up rigs are mobile, self-elevating drilling platforms that are made of a floating hull and three to four moveable legs which can secure and increase the hull above the ocean floor after arriving at their destination. The jack-up rig is frequently used for shallow wells.
Offshore Drilling Rigs Operating Depth Insights
The Offshore Drilling Rigs market segmentation, based on operating depth, includes Shallow Water, Deep Water, and Ultra-Water. The shallow water category dominates the market as they are relatively of lower cost and less complicated technical demand for operators. The blowout presenters on shallow water rigs are accessible for inspection, maintenance, and repair above the surface of the water and can be operated manually or remotely in an emergency. However, the operators conceivably shift from shallow water depths to deep and ultra-deep waters because of the shifting economy and reducing external off-source resources.Â
Figure 1: Offshore Drilling Rigs Market, by Operating depth, 2024 & 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
Offshore Drilling Rigs Regional Insights
By region, the study gives market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Offshore Drilling Rigs market, dominates this market, owing to the presence of many high offshore potential reserves of oil and gas. The rising amount of investment by the government in E&P CAPEX in this region is the reason to fuel the growth of offshore exploration and production activities, hence raising the demand for drilling equipment and offshore rigs.
Further, the main countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, South Korea, Japan, India, Australia, and Brazil.
Figure 2: Offshore Drilling Rigs Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Secondary Research, MRFR Database, and Analyst Review
Asia Pacific, Offshore Drilling Rigs market, accounts for the second-largest market share due to their increase in exploring offshore and production activities, and the rising economy has increased the consumption of energy resources. Moreover, China’s Offshore Drilling Rigs market held the largest market share, and the Indian Offshore Drilling Rigs market was the fastest-growing market in the Asia-Pacific region.
The European Offshore Drilling Rigs Market is expected to rise at the fastest CAGR from 2023 to 2032, as offshore oil and gas production is an indigenous energy source for hydrocarbon. Further, the German Offshore Drilling Rigs market held the largest market share, and the UK Offshore Drilling Rigs market was the fastest growing market in the European region.
Offshore Drilling Rigs Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to spread their product lines, which will help the Offshore Drilling Rigs market grow even more. Market participants are also undertaking a various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Offshore Drilling Rigs industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Offshore Drilling Rigs industry to benefit clients and increase the market sector. In recent years, the Offshore Drilling Rigs industry has offered some of the most significant advantages to various industries. Major participants in the Offshore Drilling Rigs market, including Equinor, Shell PLC, Schlumberger Limited, Saipem, KCA Deutag, Nobel Corporation, Pacific Drilling, Seadrill, Halliburton, Weatherford International Inc., Aban Offshore Limited, China Oilfield Services Ltd., and others, are attempting to grow the market demand by investing in the research and development operations.
Saipem is an moden technological and engineering platform for the designing, constructing, and operating of sustainable complex infrastructure and plants. It is an Italian multinational oilfield services company and one of the leader. It operates in 70 countries across the world and employs 32 thousand employees. The company provides drilling services to oil and gas upstream companies. In April 2019, Saipem announced a deal worth $200 million for two offshore drilling contracts in Norway and the Middle East. The first agreement was signed with Wintershall in order to drill two wells plus two optional wells in offshore Norway. Secondly, the agreement was signed for a four-year extension of the utilization of the high specks jack-up Perro Negro7 in the Middle East.
Schlumberger Limited is a French company established in the year 1926, doing business as SLB in an oilfield services company. It is globally the largest offshore drilling company and the world's largest offshore drilling contractor by revenue. In October 2018, Schlumberger made an announcement that the company had signed an agreement with Turkish Petroleum valued at $15 million to assist it with offshore drilling in the Mediterranean Sea. The company coordinated various products line and provided project management services in ultra-deepwater drill-ship.
Key Companies in the Offshore Drilling Rigs market include
- Equinor
- Shell PLC
- Schlumberger Limited
- Saipem
- KCA Deutag
- Nobel Corporation
- Pacific Drilling
- Seadrill
- Halliburton
- Weatherford International Inc.
- Aban Offshore Limited
- China Oilfield Services Ltd.
Offshore Drilling Rigs Industry Developments
January 2022:Â The Transocean Enabler semi-submersible drilling unit was planned by Equinor to drill a carbon injection well and a sidetrack for an already drilled carbon injection well with the support of the Northern Lights Carbon Capture Storage Project.
January 2022:Â A significant oil and gas discovery in an offshore well in Namibia was announced by Shell PLC. The drilling was started for Graff-1 well in December 2021 and found resources estimated at 250-300 million barrels of oil and gas equivalent. The graff-1 is going to spark significant international investment in this region.
February 2021: The Ghana Partners focus on drilling two development wells in the Ntomme riser base area in offshore Ghana, and another well is planned in the later year for the Enyenra area.
Offshore Drilling Rigs Market Segmentation
Offshore Drilling Rigs Type Outlook
- Jack-Up Rig
- DrillShip
- Semi-Submersible
Offshore Drilling Rigs Operating Depth Outlook
- Shallow Water
- Deep Water
- Ultra-Water
Offshore Drilling Rigs Regional Outlook
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North America- US
- Canada
-
Europe- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
-
Asia-Pacific- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
-
Rest of the World- Middle East
- Africa
- Latin America
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