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Global Subsea System Market - Growth, Trends, and Forecast (2022 - 2030)
SKU ID : INH-13101971 | Publishing Date : 01-Apr-2018 | No. of pages : 115
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The offshore drilling activity experienced a slowdown after the oil price crisis, post mid-2014. But oil price has experienced substantial recovery after 2016. Due to the growing oil & gas demand, recovery in oil price and increasing number of onshore fields reaching their maturity, the exploration & production (E&P) activity is expected to make a shift toward deeper offshore regions, which, in turn, is expected to drive the market growth during the forecast period.
Declining Offshore Production Cost to Drive the Market
Since 2015, the offshore spending has been reduced significantly. Though some spending reduction is due to drop in service prices, mainly, spending has decreased due to better process efficiency and cost savings through sustainable exercises, such as major changes in drilling strategy to optimize the production. As of 2017, about 5 billion barrels of pre-sanctioned offshore oil and gas reserves were breakeven at or lower than USD 50 per barrel. The declining offshore production cost is expected to drive the offshore drilling activity during the forecast period, which, in turn, is expected to drive the global subsea system market.
Growing Deepwater Activity to Drive the Market
Land-based and shallow water oil & gas fields are approaching their maturity. Hence, in order to meet the growing demands, upstream operating companies are exploring deeper offshore regions. Deepwater offshore drilling and production activity requires a more expensive subsea system, due to complexity and safety risks involved in the process. Hence, deeper offshore activity is expected to have a significant positive impact on the market.
Europe is Expected to Drive the Market Growth During the Forecast Period
Europe has a significant market share, owing to offshore activity in the Russian fields and the fields in the North Sea adjoining the United Kingdom and Norway. North Sea offshore production has witnessed a substantial drop in breakeven prices, with some fields breaking even at as low as USD 25 per barrel. The drop in breakeven cost, combined with the recovery in oil prices, is expected to drive the offshore drilling activity, which, in turn, is expected to drive the market in the region.
China to Experience Significant Growth
Despite low oil prices, offshore activity in China has witnessed relatively higher stability compared to other oil producing countries during 2014-17. China’s offshore activity is mainly concentrated in Bohai Bay, Pearl River Delta, and Beibu Gulf areas. As of May 2017, 5% of the total global offshore fleet was active in the country. Growing industrialization, urbanization, and increasing per capita income are the drivers for the energy demand in the country. In order to meet this energy demand, the E&P activity, including offshore, is expected to increase in China, which, in turn, is expected to drive the subsea system market in the country.
Key Developments in the Market
• February 2018: Wintershall Norge AS awarded a contract to Aker Solutions to provide Subsea Production System, umbilical and services for its operations in Offshore Nova Oil and Gas field, Norway. Aker Solutions will provide two templates with manifolds, seven subsea trees, and umbilical & tie-in equipment.
The Major Players Include - Aker Solutions ASA, Baker Hughes A GE Co, Halliburton Company, Schlumberger Limited, Weatherford International PLC, National-Oilwell Varco, Inc., Oceaneering Internationalm, TechnipFMC PLC, Kerui Group Co. Ltd, and Rongsheng Machinery Manufacture Ltd, amongst others.
Reasons to Purchase the Report
• Current and future subsea system market outlook in the developed and emerging markets
• Analyzing various perspectives of the market with the help of Porter’s five forces analysis
• The segment that is expected to dominate the market
• Regions that are expected to witness the fastest growth during the forecast period
• Identify the latest developments, market shares, and strategies employed by the major market players
• 3-month analyst support, along with the Market Estimate sheet (in excel)
Customization of the Report
• This report can be customized to meet your requirements. Please connect with our representative, who will ensure you get a report that suits your needs.
Declining Offshore Production Cost to Drive the Market
Since 2015, the offshore spending has been reduced significantly. Though some spending reduction is due to drop in service prices, mainly, spending has decreased due to better process efficiency and cost savings through sustainable exercises, such as major changes in drilling strategy to optimize the production. As of 2017, about 5 billion barrels of pre-sanctioned offshore oil and gas reserves were breakeven at or lower than USD 50 per barrel. The declining offshore production cost is expected to drive the offshore drilling activity during the forecast period, which, in turn, is expected to drive the global subsea system market.
Growing Deepwater Activity to Drive the Market
Land-based and shallow water oil & gas fields are approaching their maturity. Hence, in order to meet the growing demands, upstream operating companies are exploring deeper offshore regions. Deepwater offshore drilling and production activity requires a more expensive subsea system, due to complexity and safety risks involved in the process. Hence, deeper offshore activity is expected to have a significant positive impact on the market.
Europe is Expected to Drive the Market Growth During the Forecast Period
Europe has a significant market share, owing to offshore activity in the Russian fields and the fields in the North Sea adjoining the United Kingdom and Norway. North Sea offshore production has witnessed a substantial drop in breakeven prices, with some fields breaking even at as low as USD 25 per barrel. The drop in breakeven cost, combined with the recovery in oil prices, is expected to drive the offshore drilling activity, which, in turn, is expected to drive the market in the region.
China to Experience Significant Growth
Despite low oil prices, offshore activity in China has witnessed relatively higher stability compared to other oil producing countries during 2014-17. China’s offshore activity is mainly concentrated in Bohai Bay, Pearl River Delta, and Beibu Gulf areas. As of May 2017, 5% of the total global offshore fleet was active in the country. Growing industrialization, urbanization, and increasing per capita income are the drivers for the energy demand in the country. In order to meet this energy demand, the E&P activity, including offshore, is expected to increase in China, which, in turn, is expected to drive the subsea system market in the country.
Key Developments in the Market
• February 2018: Wintershall Norge AS awarded a contract to Aker Solutions to provide Subsea Production System, umbilical and services for its operations in Offshore Nova Oil and Gas field, Norway. Aker Solutions will provide two templates with manifolds, seven subsea trees, and umbilical & tie-in equipment.
The Major Players Include - Aker Solutions ASA, Baker Hughes A GE Co, Halliburton Company, Schlumberger Limited, Weatherford International PLC, National-Oilwell Varco, Inc., Oceaneering Internationalm, TechnipFMC PLC, Kerui Group Co. Ltd, and Rongsheng Machinery Manufacture Ltd, amongst others.
Reasons to Purchase the Report
• Current and future subsea system market outlook in the developed and emerging markets
• Analyzing various perspectives of the market with the help of Porter’s five forces analysis
• The segment that is expected to dominate the market
• Regions that are expected to witness the fastest growth during the forecast period
• Identify the latest developments, market shares, and strategies employed by the major market players
• 3-month analyst support, along with the Market Estimate sheet (in excel)
Customization of the Report
• This report can be customized to meet your requirements. Please connect with our representative, who will ensure you get a report that suits your needs.
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