Emphasis on Rig Type (Jack-up Rig, Drillship, and Semi-Submersible); Water Depth (Shallow Water and Deepwater & Ultra-deep Water); and Region/Country
Global Offshore Drilling Market is expected to grow at a significant rate of around 8.3% during the forecast period. Factors such as the increasing global energy demand, depletion of onshore and shallow-water reserves, innovative technologies, such as advanced drilling rigs, subsea production systems, and enhanced oil recovery techniques, high oil and gas prices, economic diversification, supportive government policies, and transition towards renewable energy are some of the factors driving the global offshore drilling market.
The US Energy Information Administration (EIA) reports that as of July 2022, 98.8 million barrels per day (b/d) of petroleum and liquid fuels were consumed globally, representing a 0.9 million b/d increase from July 2021. Additionally, the average daily output of oil and liquid fuels worldwide in 2022 is expected to be approximately 99.4 million barrels, up 2.1 million from 2021.
Baker Hughes Company, Halliburton Energy Services Inc, Schlumberger Limited, China Oilfield Services Limited, Nabors Industries Ltd, National Oilwell Varco, Tenaris S.A., Maersk Drilling AS, Exxon Mobil Corporation, and China National Offshore Oil Corporation are some of the key players in the market. These players have undertaken several M&As along with partnerships to facilitate customers with hi-tech and innovative products/technologies.
Insights Presented in the Report
“Amongst rig type, Drillship category to witness higher CAGR during the forecast period.”
Based on rig type the market is divided into Jack-up Rig, Drillship, and Semi-Submersible. The Jack-up Rig segment dominated the market in 2022 and is expected to show the same fashion in the forecast period. Parallelly, drillship is considered the fastest-growing segment due to the ongoing research and development in the field and the increasing exploration of deep waters. Additionally, 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. Drillships are specialized vessels designed for offshore drilling in deep and ultra-deep waters. Their adoption is increasing due to the depletion of shallow-water reserves and the growing demand for energy resources in remote offshore locations. Technological advancements, such as advanced drilling equipment and dynamic positioning systems, have improved drillships’ efficiency and safety for deep-water operations. The discovery of significant deep-water oil and gas reserves, particularly in regions like the Gulf of Mexico, offshore Brazil, and West Africa, has fueled investments in drillships.
For instance, in January 2024, Offshore drilling contractor Seadrill announced a new contract award and extension, totaling approximately $97.5 million in value, for two drillships along with a timeline for the resumption of management services for another drillship, which joined its fleet following the acquisition of Aquadrill. Furthermore, it has secured a new contract for the West Vela drillship with Talos Production in the U.S. Gulf of Mexico. With an estimated duration of 150 days, this deal is slated to begin in the third quarter of 2024 and represents a total contract value of around $73.5 million.
“Amongst water depth, shallow water segment to hold a significant share in the market in 2022.”
Based on Water Depth, the market is bifurcated into Shallow Water and Deepwater & Ultra-deep Water. The Shallow Water segment holds a significant market share in 2022 and is expected to showcase the same trend in the forecast period. Less than 400-500 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. There are several significant differences between shallow-water drilling and Deepwater drilling. The deepwater and ultra-deep-water segment is anticipated to capture the highest growth due to decreased oil reserves in the shallow waters.
“North America to hold a considerable share in the market.”
North America has witnessed a significant increase in recent years due to increasing investments by the government and private companies in the region. Moreover, offshore oil and rigs are found in both the US and Canada. Canada Alberta’s oil sands produce 166.3 billion barrels of oil and an additional 4.7 billion barrels through conventional and tight oil formations. Furthermore, Canada’s oil sands remain the primary source of hydrocarbon production, making up more than 97% of the country’s total oil reserves. The Gulf of Mexico region is also anticipated to produce a large amount of offshore oil and gas in the coming years, further driving offshore oil and gas drilling in the region. Rising investments in the exploration activities in the region are further anticipated to drive the market in the forecast period.
In December 2023, Oil companies offered $382 million for drilling rights in the Gulf of Mexico. According to the US Department of Interior’s Bureau of Ocean Energy Management, companies including Chevron, Hess, and BP offered bids on more than 300 parcels covering 7000 square km.
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1. Market Introduction
2. Research Methodology Or Assumption
3. Market Synopsis
4. Executive Summary
5. Offshore Drilling Market Revenue (usd Mn), 2020-2030f
6. Market Insights By Rig Type
7. Market Insights By Water Depth
8. Market Insights By Region
9. Offshore Drilling Market Dynamics
10. Offshore Drilling Market Opportunities
11. Offshore Drilling Market Trends
12. Demand And Supply-side Analysis
13. Value Chain Analysis
14. Competitive Scenario
15. Company Profiled
16. Disclaimer
Analyzing the historical market, estimating the current market, and forecasting the future market of the global Offshore Drilling Market were the three major steps undertaken to create and analyze the increasing prevalence and current scenario in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global Offshore Drilling Market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of the Offshore Drilling Market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the Offshore Drilling Market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as rig type and water depth. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the Offshore Drilling Market. Further, we conducted factor analysis using dependent and independent variables such as rig type and water depth of offshore drilling. A thorough analysis was conducted of demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Offshore Drilling Market sector across the globe.
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global Offshore Drilling Market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2028 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global Offshore Drilling Market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of type and process in the global Offshore Drilling Market.
The current & future market trends of the global Offshore Drilling Market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
Q1: What is the current market size and growth potential of the global Offshore Drilling Market?
Q2: What are the driving factors for the growth of the global Offshore Drilling Market?
Q3: Which segment has the largest share of the global Offshore Drilling Market by Rig Type?
Q4: What are the emerging technologies and trends in the global Offshore Drilling Market?
Q5: Which region will dominate the global Offshore Drilling Market?
Q6: Who are the key players operating in the global Offshore Drilling Market?
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February 11, 2025
