Home Energy And Power Offshore Drilling Market Size, Share & Analysis by 2031

Offshore Drilling Market

Offshore Drilling Market Size, Share & Trends Analysis Report By Services (Contract Drilling, Directional Drilling, Logging While Drilling, Measurement While Drilling), By Platform (Jack-up Rigs, Floating, Semisubmersibles, Drillships, Others), By Water Depth (Shallow, Deep, Ultra-deepwater) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SREP1412DR
Study Period 2019-2031 CAGR 3.2%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 112.21 Billion
Forecast Year 2031 Forecast Year Market Size USD 148.97 Billion
Largest Market Asia Pacific Fastest Growing Market LAMEA
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Market Overview

The global offshore drilling market size was valued at USD 112.21 billion in 2022. It is projected to reach USD 148.97 billion by 2031, growing at a CAGR of 3.2% during the forecast period (2023–2031). Factors like the rise in demand for natural gas and oil, global drilling, and well-intervention activities stimulate market growth.

Petroleum and natural gas are extracted from the seabed using offshore drilling, done from a stationary or mobile platform positioned off the coast, on the shelf, and in deep waters. This market study on offshore drilling provides information on some platforms used for offshore drilling and their various services, including directional drilling, logging while drilling, and measurement while drilling. Offshore drilling rigs are required for drilling beneath the seabed. The soil can be mined for natural gas and oil using drilling techniques. The rapid growth of offshore oil and gas operations is expected to increase demand for offshore drilling rigs globally. It has also been demonstrated that developing new exploration sites and improving current reserves positively affect market expansion. The global offshore drilling rig market is comprehensively evaluated in the report. The report thoroughly analyzes the market's key segments, trends, drivers, restraints, competitive environment, and other essential elements.

Market Dynamics

What Are the Main Factors Driving the Market for Offshore Drilling?

The Rise in Demand for Natural Gas and Oil

Due to the growing use of natural gas as a fuel in the previous ten years, the world's natural gas consumption has shown a notable increase. Additionally, the demand for natural gas is anticipated to increase over the forecast period due to the rise in fuel consumption from developing economies like China and India. In 2040, the use of natural gas will increase by 45%, with the power sector offering growth potential. The rising global demand for oil and natural gas will fuel the expansion of oil and gas E&P activities. The reserves in offshore wells are greater than those in onshore wells, despite the higher costs associated with producing oil and gas offshore. These enormous reserves will likely be utilized and produced by upstream companies. Thus, as the demand for oil and gas rises, more offshore drilling will take place, driving the global offshore drilling market.

Global Drilling and Well-Intervention Activities are on the Rise 

Due to high production costs and low oil prices during petroleum exploration, the oil and gas industry experienced a decline. However, there has been a noticeable growth in recent years due to rising oil prices and significant investment initiatives. An increase in drilling and well intervention activities in the oil and gas sector caused this growth in the offshore drilling market. Artificial neural networks, machine learning, and other industry 4.0 technologies have helped drilling operators become more efficient and advance the supply chain perspective on drilling sites, which is expected to increase drilling operations. Even though U.S. shale production has been a significant driver for the market over the past few years, rising drilling activity in Brazil, South Africa, Venezuela, and Southeast Asia is anticipated to accelerate market growth over the forecast period. For its ultra-deepwater drilling services, Transocean, for instance, has received new rig contracts and extensions worth USD 352.9 million. A similar ultra-deepwater contract worth USD 140,000 for Deepwater Nautilus offshore Malaysia was given to Petronas. 

What Are the Main Factors That Are Limiting the Market for Offshore Drilling?

Constant Change in The Prices of Crude Oil

Changes in the price of crude oil impact the profitability and performance of upstream oil and gas companies. Due to the erratic nature of import costs, oil and gas upstream companies have postponed their exploration and production (E&P) projects. Current crude oil production projects under low-price scenarios generated meager revenues, which made it challenging for businesses to maintain their position as market leaders. During the COVID-19 pandemic, the price of US oil fell and turned negative. This illustrates how the COVID-19 pandemic has significantly impacted the world economy. Additionally, E&P projects are only finished when the money made is enough for the oil and gas companies to turn a profit. The volatility will hamper investment in E&P projects and the expansion of the E&P industry in crude oil prices. This will limit offshore drilling operations and hinder the expansion of the global offshore drilling market.

What Are the Future Opportunities for Offshore Drilling?

Increasing Investment to Uncover Hydrocarbon Reserves

Production of oil and gas is the foundation for global expansion. Hydrocarbons have been heavily utilized to produce goods, transportation, and other necessities. However, the demand-supply ratio is expected to be muted by the exponential demand for conventional fuel through urbanization, globalization, and rapid economic growth. To meet future energy demand, many nations are also increasing their capital expenditures (CAPEX). One of the most dependable energy sources that draw many investors is offshore hydrocarbons, which have proven to be so. Due to technological advancements like the Internet of Things (IoT), robotics, artificial intelligence (AI), and others, the world is undergoing a significant economic transition phase. Infrastructure, welfare programs, innovation, and technology are all developed areas, and emerging economies are heavily investing. This increases the demand for hydrocarbons.

Regional Analysis

The global offshore drilling market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Asia Pacific Dominates the Global Market.

Asia Pacific is the most significant shareholder in the global offshore drilling market and is expected to grow at a CAGR of 2.97% during the forecast period. The offshore drilling market analysis includes China, Australia, India, Japan, and the rest of Asia-Pacific. The expansion of the oil and gas industry in the local market is being aided by the rapid development of infrastructure, rising drilling and well-intervention activity, and technological advancements. Due to its high energy demand, Asia-Pacific is one of the most populated and rapidly expanding regional markets in the entire world. As energy production from renewable resources is still in its infancy, Asia-Pacific meets its energy needs by consuming fossil fuels. During the forecast period, it is anticipated that the growing population will increase energy demand. It is also anticipated that the market growth will be fueled by the rising investment made by major oil and gas industry players to increase energy outputs and decrease reliance on oil imports from other nations.

LAMEA is expected to grow at a CAGR of 3.85% during the forecast period. Several Middle Eastern and African nations have sizable offshore oil and gas reserves. The South Pars Gas Complex in the Persian Gulf, the largest gas field in the world, and the recent discoveries of oil and gas reserves in the eastern Mediterranean Sea are all anticipated to support the market's expansion. The Angolan offshore is one of Africa's most promising plays and continues to attract significant amounts of investment. Drilling outcomes are generally favorable, and recent exploration has produced several high-impact discoveries. Nigeria is in first place with the largest Deepwater crude oil and condensate reserves among the ten nations. Most reserves are offshore in the Bight of Benin, the Gulf of Guinea, and the Bight of Bonny along the Niger River Delta. Despite some onshore exploration, most exploration activities are concentrated in the deep and ultra-deep offshore.

Report Scope

Report Metric Details
Segmentations
By Services
  1. Contract Drilling
  2. Directional Drilling
  3. Logging While Drilling
  4. Measurement While Drilling
By Platform
  1. Jack-up Rigs
  2. Floating
  3. Semisubmersibles
  4. Drillships
  5. Others
By Water Depth
  1. Shallow
  2. Deep
  3. Ultra-deepwater
Company Profiles Halliburton Energy Services Inc Schlumberger Limited Weatherford International Ltd Baker Hughes A GE company LLC China Oilfield Services Limited VALLOUREC Nabors Industries Ltd National Oilwell Varco Tenaris S.A. Frank’s International N.V
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The market is segmented by service, platform, and water depth.

Based on service, the global offshore drilling market is bifurcated into contract drilling, directional drilling, logging while drilling, and measurement while drilling.

The contract drilling segment is the highest contributor to the market and is expected to grow at a CAGR of 3.74% during the forecast period. The maintenance and services provided by drilling companies during the drilling and intervention activities generate a sizeable portion of revenue for offshore drilling. As the name implies, contract drilling refers to an agreement or contract that a drilling company signs of preparing a well for production. These contracts may call for running production casing, performing stimulation work, and isolating zones to permit well flow. Some of the well-known offshore drilling contractors in the industry include Transocean, Maersk Drilling, and Ensco.

Based on the platform, the global offshore drilling market is bifurcated into jack-up rigs, floating, and others.

The jack-up rigs segment is the highest contributor to the market and is expected to grow at a CAGR of 3.13% during the forecast period. Jack-up rigs are portable, self-elevating drilling platforms made up of a floating hull and three to four movable legs that can secure and raise the hull above the ocean floor when they arrive at their destination. The hull of the jack-up is floating in the water, and it is maneuvered into position with its legs raised. Once they arrive at the job site, their legs are jacked onto the ocean floor. Because deep water drilling poses a risk to structural stability, jack-up rigs are frequently used for shallow wells. However, as drilling technology has advanced, so have their capabilities, making it possible to drill in deep waters.

Based on water depth, the global offshore drilling market is bifurcated into shallow, deep, and ultra-deepwater.

The shallow segment is the highest contributor to the market and is expected to grow at a CAGR of 3.46% during the forecast period. Less than 200 meters of water are in the shallows. Due to their relatively lower cost and less complicated technical requirements for operators, the segment commands the largest market share, accounting for almost 89% of the global share. There are several significant differences between shallow-water drilling and Deepwater drilling. Blowout preventers (BOPs) on shallow water rigs are accessible for inspection, maintenance, and repair above the water's surface and can be operated manually or remotely in an emergency. These BOPs have legs that extend to the ocean floor. However, the operators are more likely to switch from shallow water depths to deep and ultra-deep waters due to the shifting economy and diminishing external offshore resources.

Market Size By Services

Recent Developments

  • October 2022, In conjunction with its attendance at the Abu Dhabi International Petroleum Exhibition and Conference, Halliburton Company unveiled new products highlighting cutting-edge technologies and environmentally friendly solutions. The new technologies support remote automation for improved safety, more accurate and effective drilling performance, and a smaller carbon footprint for cementing activities.

Top Key Players

Offshore Drilling Market Share of Key Players

Halliburton Energy Services Inc Schlumberger Limited Weatherford International Ltd Baker Hughes A GE company LLC China Oilfield Services Limited VALLOUREC Nabors Industries Ltd National Oilwell Varco Tenaris S.A. Frank’s International N.V

Frequently Asked Questions (FAQs)

What is the growth rate for the Offshore Drilling Market?
Offshore Drilling Market size will grow at approx. CAGR of 3.2% during the forecast period.
Some of the top industry players in Offshore Drilling Market are, Halliburton Energy Services, Inc, Schlumberger Limited, Weatherford International Ltd, Baker Hughes, a GE company LLC, China Oilfield Services Limited, VALLOUREC, Nabors Industries Ltd, National Oilwell Varco, Tenaris S.A., Frank’s International N.V, etc.
Asia Pacific has held a dominant position in the Offshore Drilling Market, with the largest market share.
The North America region has experienced the highest growth rate in the Offshore Drilling Market.
The global Offshore Drilling Market report is segmented as follows: By Services, By Platform, By Water Depth


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