Offshore Contract Drilling Market: Introduction
- Demand for oil & gas has increased significantly over the last decade due to rapid industrialization and globalization across the world. This trend is expected to continue in the next few years. Thus, demand for oil and gas is expected to rise in the near future.
- Oil & gas companies provide a contract to drilling companies, wherein operators enter into a contract with mobile offshore drilling units for a specific well or drilling program, or for a specific period of time. Companies are increasingly investing in contract drilling due to the rise in investment in the oil & gas industry.
Key Drivers and Restraints of Offshore Contract Drilling Market
- Rise in offshore oil & gas discoveries is expected to drive the offshore contract drilling market. Around 68 oil & gas discoveries were made in 2020; of these, 34 discoveries were made onshore, while the remaining 28 discoveries were located offshore. Russia and Norway were the leading countries in new oil & gas discoveries in 2020. Investment in the oil & gas industry is expected to rise in the near future due to the increase in demand for oil and gas in the automotive industry.
- Rise in deep water and ultra-deep water exploration and production activities is one of the key drivers of the offshore contract drilling market. Governments of various countries are taking initiatives to improve energy security and increase oil & gas production. Thus, the numbers of deep water and ultra-deep water oil & gas projects have been increasing over the past few years. Increase in investment in deep and ultra-deep water projects is anticipated to boost the offshore contract drilling market during the forecast period.
- Volatility in oil prices, due to the supply-demand gap and geopolitical issues, has been restraining the demand for offshore contract drilling across the globe
Global Offshore Contract Drilling Market Segmentation
- The global offshore contract drilling market can be segmented based on type and location
- In terms of type, the offshore contract drilling market can be divided into jack up, semi-submersible, drill ship, and others. Drill ship and jack up were key segments of the market in 2020. These segments are expected to remain lucrative during the forecast period due to high demand from oil & gas companies.
- In terms of location, the offshore contract drilling market can be divided into shallow water and deep & ultra-deep water. Shallow water was the lucrative segment of the global offshore contract drilling market in 2020. However, the deep & ultra-deep water segment is expected to expand at a faster pace in terms of volume in the near future.
Global Offshore Contract Drilling Market: Regional Segmentation
- Based on region, the global offshore contract drilling market can be classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- North America dominated the global offshore contract drilling market in 2020. This trend is projected to continue during the forecast period, due to increase in capacity of oil and gas production in the U.S. and Canada. Presence of a large number of private oil companies in North America is likely to drive the offshore contract drilling market in the region during the forecast period.
- Middle East & Africa is a major oil producing region in the world. Offshore developments and discoveries of new oil and gas fields by countries such as Qatar, the UAE, and Saudi Arabia are anticipated to dominate the offshore contract drilling market in the Middle East during the forecast period.
- The market in Latin America, Europe, and Asia Pacific is estimated to expand at a considerable pace during the forecast period. Increase in investment in offshore exploration activities by developing counties such as China, India, and Brazil is expected to drive the offshore contract drilling market during the forecast period.
COVID-19 Impact on Offshore Contract Drilling Market
- The COVID-19 pandemic has adversely impacted the world due to the imposition of stringent lockdowns in all major countries. It has put the global economy in major distress. Demand for oil and gas has declined significantly due to lockdowns. Furthermore, the supply of supply of oil & gas has been hampered, as various countries are under lockdown. However, governments of various countries across the world have begun to ease the lockdown restrictions. Demand for petroleum products has been rising steadily. This is expected to drive the demand for offshore contract drilling during the forecast period.
Key Players Operating in Market:
- Valaris Limited
- COSL Drilling
- Diamond Offshore Drilling, Inc.
- SAIPEM SpA
- Transocean Ltd
- Noble Corporation
- Borr Drilling
- Maersk Drilling
- Abu Dhabi National Oil Company
Global Offshore Contract Drilling Market: Research Scope
Global Offshore Contract Drilling Market, by Type
- Jack Up
- Drill Ship
Global Offshore Contract Drilling Market, by Location
- Shallow Water
- Deep & Ultra-deepwater
Global Offshore Contract Drilling Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of Middle East & Africa
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