Offshore drilling is the mechanical process of extracting petroleum and natural gas from the seabed. It uses a stationary or mobile platform situated off the coast, in the open ocean and deep water region. It generally extracts petroleum from the rock formation present beneath the seabed. Offshore drilling is gaining popularity with the increasing amount of oil and petroleum products used at the global level.
The significant factors propelling the growth of the Global Offshore Drilling market include growing investment in developing countries, liberalization of the Mexican oil & gas industry, and the increasing technological advancement across the globe. The growing price of crude oil is expected to increase the investment for exploration and production (E&P) activities, which will lead to the rise in the number of upcoming projects, thereby accelerating the demand for offshore drilling. In addition to this, the rising demand for oil & gas across the globe and the growing focus on deep water drilling is expected to boost the drilling activities in an offshore location. Due to the presence of vast untapped reserves, the oil & gas companies are shifting from shallow-water drilling to ultra-deep water drilling. However, oil price fluctuation and capital intensive are restraining the growth of the market.
Based on the service, the contract drilling segment is expected to grow at a higher CAGR during the forecast period owing to the continuous development of deepwater and ultra-deepwater reserves around the globe. The rising investment in the deepwater projects specially in Brazil, United States of America, and Norway, is driving the demand for offshore contract drilling.
Based on the application, the deepwater drilling segment is anticipated to lead the market during the forecast period due to the growing number of oil & gas reserves in deep water sedimentary basins across Europe and Africa.
Based on region, the Asia-pacific region is projected to grow at a higher CAGR during the forecast period owing to the growing number of oil & gas reservoirs in Australia South China Sea and Gulf of Thailand coupled with the increasing demand from India and China. The Asia-pacific region is considered one of the largest consumers of oil & gas after North America, which leads to an increase in E&P activities in this region, thereby fuelling the growth of the market during the forecast period.
The major key players in the market include Halliburton Company, Schlumberger Limited, Seadrill Limited, Transocean Ltd., Weatherford International Ltd., Atwood Oceanics, Inc., Baker Hughes Incorporated, China Oilfield Services Limited, Diamond Offshore Drilling Inc., Dolphin Drilling AS, Maersk Drilling, among others.
- In 2020, Halliburton entered into a contract for offshore natural gas wells that will feed an LNG project in Northwest Australia.
- In 2018, Transocean, an offshore drilling giant, acquired Ocean Rig UDW, an ultra-deepwater drilling specialist. This acquisition added nine high-specification ultra-deepwater drillships, two harsh environment semi-submersibles, and two high-specification ultra-deepwater drillships currently under construction to Transocean’s existing fleet.
The Global Offshore Drilling market has been segmented based on the service, application, and region. Based on service, the market is segmented into Offshore Contract Drilling Market, Offshore Directional Drilling Market, Offshore Logging While Drilling Market (LWD), and Offshore Measurement While Drilling (MWD). Based on the application, the market is segmented into Shallow Water Drilling Market, Deepwater Drilling Market, and Ultra-Deepwater Drilling Market.
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