According to the 2017-2027 forecast by TechSci Research, the global offshore oil and gas rig market will experience a CAGR of 5.69% and reach a value of USD22522.64 million by 2027. This growth is driven by the increasing demand for oil and gas due to robust economic activities and the growth of various industries such as automotive, construction, and manufacturing worldwide.
To explore, drill, and develop oil and gas fields, exploration and production operators rely on the oilfield services industry for assets, labor, technology, and project management services. Market players are investing heavily in research and development activities to find innovative solutions to make oil exploration activities profitable, which is expected to provide lucrative growth opportunities for the industry in the next five years.
The cost of setting up a rig and drilling wells is significant, which is why organizations are hesitant to spend resources in an ineffective location. However, the introduction of 3-D seismic imaging technology has revolutionized oil exploration activities. This technology uses an energy source to send sound waves deep through the earth's surface and geophones placed on the surface to receive the noises that bounce back up, which are then transferred to recorder trucks. The data obtained is used to create a 3-D structure of the contents inside the surface, allowing engineers and geophysicists to make informed decisions.
Advancements in different offshore drilling procedures and techniques are also expected to positively impact market demand. However, the global offshore oil and gas rig market growth may be hindered by unstable oil prices and high operational costs during the forecast period.
The global offshore oil & gas rig market is segmented into type, water depth, regional distribution, and company.
The offshore oil and gas rig market is categorized by water depth into shallow water, deepwater, and ultra-deepwater. In 2021, shallow water depth was the dominant market segment, accounting for 64.67% of the total market share. Jackups had the highest utilization rate at 82%, followed by drills at approximately 79% and semi-drills at around 64%, covering a significant portion of the shallow water segment.
Jackups are typically used in shallow and intermediate water depths due to their limitations on leg length. The expanding Jackups market is expected to stimulate demand for this segment in the next five years.
Major market players operating in the global offshore oil & gas rig market are :
- Halliburton Co.
- Valaris Limited
- Baker Hughes Company
- Sembcorp Marine Ltd
- Schlumberger Limited
- China Oilfield Services Limited
- Samsung Heavy Industries Co. Ltd
- Jindal Drilling & Industries Limited
- Keppel Offshore & Marine
- ADNOC Drilling
- Arabian Drilling Company
- Shelf Drilling, Ltd.
“Asia-pacific dominated the market in 2021 and captured 33.17% of the total market share. The market is expected to grow at a CAGR of 5.20% in the Asia-pacific region over the forecast period. There is a rise in the number of offshore development projects to support the growth of the developing economies across the region. China, India, Japan, Indonesia, and Thailand are developing at a significant rate, increasing energy resource consumption. The government of the emerging economies is investing substantial amounts in offshore exploration and production and promoting the non-conventional energy resources across their country. The surge in demand for offshore gas and oil rigs, along with growing exploration and production activities, are expected to propel the global offshore oil & gas rig market growth till 2027” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
“Offshore Oil & Gas Rig Market - Global Industry Size, Share, Trends, Competition, Opportunity, and Forecast, 2017-2027, Segmented By Type (Jackups, Semisubmersibles, Drill Ships, and Others), By Water Depth (Shallow Water, Deepwater and Ultra-deepwater), and By Region”, has evaluated the future growth potential of global offshore oil & gas rig market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in global offshore oil & gas rig market.
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