04 October 2023
Visiongain has published a new report entitled Deepwater Drilling Market Report 2023-2033: Forecasts by Depth (Deepwater, Ultra-Deepwater), by End-user (Oil and Gas Exploration, Oil and Gas Production, Renewable Energy), by Rig Type (Drillships, Semi-Submersible Rigs, Jack-Up Rigs, Other), by Technology (Dynamic Positioning (DP) Drilling Rigs, Managed Pressure Drilling (MPD) Systems, Subsea Blowout Preventers (BOPs), Riserless Drilling Systems, Floating Production Storage and Offloading (FPSO) Units), by Application (Exploration Drilling, Appraisal Drilling, Production Drilling, Well Intervention, Offshore Wind Farm Installation, Tidal Energy Drilling) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies AND COVID-19 Impact and Recovery Pattern Analysis.
The global deepwater drilling market was valued at US$23.3 billion in 2022 and is projected to grow at a CAGR of 7.1% during the forecast period 2023-2033.
Economic Viability: Cost-Efficient Operations
Economic viability is a key consideration for drilling projects. Deepwater drilling has become more economically attractive due to advancements in drilling techniques, project management, and cost control measures. The optimization of drilling operations, coupled with cost-effective subsea infrastructure solutions, has significantly lowered production costs. This increased economic feasibility has played a pivotal role in driving investments in deepwater drilling ventures.
Energy Security: Diverse Resource Portfolio
Countries and regions prioritize energy security by diversifying their energy resource portfolios. Deepwater drilling contributes to this strategy by offering access to offshore hydrocarbon reserves. This diversification reduces dependence on energy imports and enhances energy independence. Nations view deepwater exploration and production as a means to strengthen their energy security, especially in times of geopolitical uncertainty or supply disruptions.
How has COVID-19 had a significant negative impact on the Deepwater Drilling Market?
The COVID-19 pandemic had a significant impact on the Deepwater Drilling Market. Initially, the industry experienced a sharp decline in activity as the pandemic disrupted global supply chains, reduced oil demand, and triggered a plunge in oil prices. This forced many deepwater drilling projects to be delayed or cancelled, as oil and gas companies looked to conserve cash and reassess their investment strategies in the face of uncertainty.
The pandemic also led to operational challenges. Strict health and safety protocols were implemented on offshore drilling rigs to mitigate the risk of COVID-19 transmission among the workforce. These measures included reduced crew sizes, quarantine periods for new personnel, and increased sanitization efforts. While necessary for public health, these measures impacted drilling efficiency and increased operational costs.
Furthermore, financial constraints resulting from the economic downturn forced many deepwater drilling companies to reevaluate their capital expenditure plans. Investments in new exploration and drilling projects were curtailed, and some companies faced financial distress or bankruptcy.
However, as the global economy gradually recovered and oil prices stabilized, the Deepwater Drilling Market showed signs of resilience. Oil and gas companies began to cautiously resume some of their deepwater projects, particularly in regions with proven reserves. Additionally, the adoption of digital technologies and automation in drilling operations accelerated, improving efficiency and reducing the need for extensive on-site personnel.
How will this Report Benefit you?
Visiongain’s 398-page report provides 119 tables and 191 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the global deepwater drilling market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for Deepwater Drilling. Get financial analysis of the overall market and different segments including depth, end-user, rig type, technology, application and capture higher market share. We believe that there are strong opportunities in this fast-growing deepwater drilling market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.
What are the Current Market Drivers?
Greater Viability of Drilling Projects in Deepwater, and Ultra-Deepwater Provides Impetus to Market Growth
In recent years, advancements in drilling technology and expertise have significantly increased the viability of deepwater and ultra-deepwater drilling projects. This enhanced viability stems from innovations in equipment, safety protocols, and exploration techniques, allowing companies to access hydrocarbon reserves that were once considered too challenging or expensive to extract. As a result, the market has experienced robust growth as oil and gas companies increasingly turn their attention to these deeper offshore resources. This trend is expected to continue as companies explore deeper waters, driven by the potential for substantial reserves that can secure their long-term energy production.
The Increasing Demand for Oil and Gas is a Key Factor Driving Market Growth
The increasing global demand for oil and gas is a pivotal driver of growth in the deepwater drilling market. As the global population continues to grow, industrialization spreads, and transportation sectors expand, there is a persistent and escalating need for energy resources. Deepwater drilling provides access to vast untapped reserves that were previously inaccessible, and these reserves are crucial for meeting the rising energy demands. Developing economies, in particular, have witnessed a surge in energy consumption as they strive to meet their development goals. This has led to increased investment in deepwater drilling projects to secure a stable supply of hydrocarbons. Furthermore, deepwater reserves are often located in politically stable regions, making them an attractive option for energy companies looking to mitigate geopolitical risks associated with onshore resources.
Where are the Market Opportunities?
Increase in Population and Industrial Development are Increasing the Global Demand for Energy
The relentless growth in global population and the continuous expansion of industrial development have propelled an ever-increasing demand for energy resources worldwide. This surge in energy demand is a compelling opportunity for players in the deepwater drilling market. As the world's population burgeons, particularly in emerging economies, and industries evolve, the need for oil and gas extraction from deepwater reserves remains insatiable. This sustained demand offers a stable and potentially lucrative market for deepwater drilling companies, providing them with a solid foundation to secure long-term contracts and bolster their market presence. Furthermore, as developing nations advance economically and their energy requirements grow, they seek to harness their offshore energy resources, presenting an opportune time for deepwater drilling companies to expand their operations globally.
Many Regions with Significant Untapped Deepwater Reserves Remain Unexplored can be Opportunities for the Market
A plethora of regions across the globe holds substantial untapped deepwater reserves that remain largely unexplored. These untapped reservoirs represent an enticing opportunity for players in the deepwater drilling market. Notably, regions such as the Arctic, East Africa, and the deeper expanses of the Gulf of Mexico hold immense hydrocarbon potential, yet remain underdeveloped. The untapped nature of these reserves means that deepwater drilling companies can be pioneers, securing exploration and production rights in these regions and establishing a dominant presence. By leveraging their expertise and cutting-edge technology, these companies can not only access new reservoirs but also establish long-lasting partnerships with governments and energy firms, cementing their position as key players in these burgeoning markets.
The major players operating in the deepwater drilling market are Awilco Drilling PLC, Borr Drilling Ltd, China Oilfield Services Limited, Noble Corporation plc, Northern Drilling Ltd, Odfjell Drilling Ltd., Petroleum Geo-Services, Seadrill Limited, Shelf Drilling Ltd, Transocean Ltd., Valaris Limited, Vantage Drilling International, . These major players operating in this market have adopted various strategies comprising M&A, investment in R&D, collaborations, partnerships, regional business expansion, and new product launch.
• 14 Sept 2023, Transocean Ltd. (NYSE: RIG) ("Transocean") has entered into a three-year contract with a national oil firm for the newbuild ultra-deepwater drillship Deepwater Aquila for work offshore Brazil. The deal, which is scheduled to start in the third quarter of 2024, will cost the firm $486 million in backlog, not including a mobilisation charge that will be roughly 90 times the contract dayrate.
• 03 April 2023, The acquisition of Aquadrill LLC by Seadrill Limited ("Seadrill") (NYSE & OSE: SDRL) has been completed. Aquadrill became a wholly owned subsidiary of Seadrill as a result of the deal.
Notes for Editors
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