The increasing demand of price competitive solutions in the offshore oil and gas industry has led the major service providing companies to invest in offshore rental equipment market. The increasing oil and gas prices have led to the need of optimizing the extraction of oil and gas from mature fields. Most of the equipments used in drilling sites are expensive, thus contractors tend to rent these equipments instead of buying them. Equipment renting provides significant savings and helps in managing the inventory in an efficient manner. The major exploration and production companies often maintain their own rental division or enter into agreements with key rental companies. The profitability margins of offshore exploration companies are susceptible to price variations in the crude oil market. Time and availability of capital is one the primary concerns for offshore oil and gas operating companies. As a result, operating companies often prefer renting equipments, which proves to be an instant solution with minimum capital exposure. The market for offshore rental equipment is expected to grow at a substantial rate owing to increasing exploration activities in offshore locations.
Offshore rental equipment market is mainly driven by rising energy demand and increasing investment in deep offshore locations. The increasing tendency of drilling contractors to rent equipments rather than buying the equipments is huge factor acting in favour of the offshore rental market. In countries such as Norway and the U.K. the government has enforced certain safety parameters for exploration companies to operate in the offshore waters. The rental companies in this region offer equipments which are specifically designed keeping in mind the safety regulations of these countries. Several drilling companies usually demand customized equipments which tend to increase the capital costs of the rental companies. These capital expenditures and the heavy initial capital costs act as restraints for the growth of the market.
The offshore rental equipment market can be broadly segmented based on the type of rental equipments as drilling equipment, pressure and flow equipment and other equipment. Drilling equipments account for the major share of the market and are the most rented equipments, due to increased drilling activities. Within drilling equipments drill pipe is the most widely used equipment followed by drill collar. Rotary subs, hevi-wate, cup testers and test plugs are others equipments considered in this category. Pressure and control equipments include blow out preventers (BOP), valves and manifolds.
With increasing drilling activities in deepwater areas, the market for offshore rental equipment continues to grow at an increasing pace. The increasing offshore production activities in the Latin American region will provide the major market for offshore rental equipment in the coming future. Planned expansion projects and the large offshore reserves of West Africa is one of the prospective regions for the growth of the offshore rental equipment market. The exploration companies in Asia Pacific are also increasing investment in offshore locations of China and Australia which are anticipated be major market for offshore rental equipment in coming years. The stringent working parameters in offshore areas of North Sea have attracted several offshore rental equipment providers in this region.
Some of the major companies in the offshore rental equipment market are Aquaterra Energy, Norwegian Offshore Rental AS, Ferguson Group and Weatherford International.
This research report analyzes this market on the basis of its market segments, major geographies, and current market trends. Geographies analyzed under this research report include
- North America
- Asia Pacific
- Rest of the World
This report provides comprehensive analysis of
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for upcoming years
This report is a complete study of current trends in the market, industry growth drivers, and restraints. It provides market projections for the coming years. It includes analysis of recent developments in technology, Porter’s five force model analysis and detailed profiles of top industry players. The report also includes a review of micro and macro factors essential for the existing market players and new entrants along with detailed value chain analysis.
Reasons for Buying this Report
- This report provides pin-point analysis for changing competitive dynamics
- It provides a forward looking perspective on different factors driving or restraining market growth
- It provides a six-year forecast assessed on the basis of how the market is predicted to grow
- It helps in understanding the key product segments and their future
- It provides pin point analysis of changing competition dynamics and keeps you ahead of competitors
- It helps in making informed business decisions by having complete insights of market and by making in-depth analysis of market segments
- It provides distinctive graphics and exemplified SWOT analysis of major market segments