Global Subsea Production and Processing System Market - Growth, Trends, and Forecast (2018 - 2023)
The oil price crisis, after mid-2014, has had an adverse effect on offshore activity, globally. After 2016, the oil prices witnessed a recovery. Due to growing oil & gas demand, recovery in oil price and increasing number of onshore fields reaching their maturity, exploration & production activity is expected to make a shift toward deeper offshore regions, which in turn is expected to drive market growth during the forecast period.
Growing Deepwater Activity Drives the Market
Land-based and shallow water oil & gas fields are approaching their maturity. Hence, in order to meet the growing demand, upstream operating companies are exploring deeper offshore regions. Deepwater offshore drilling and production activity requires a more expensive subsea production and processing system, due to complexity and safety risks involved in the process. Increasing deepwater activity is expected to have a significant positive impact on the market.
Europe is Expected to Drive the Global Market Growth during the Forecast Period
Europe has a significant share of the market, due to the offshore activity in the Russian fields and the fields in the North Sea adjoining the United Kingdom and Norway. North Sea offshore production has witnessed a substantial drop in breakeven prices, with some fields breaking even at as low as USD 25 per barrel. The drop in breakeven cost, combined with the recovery in oil prices, is expected to drive offshore drilling activity, which in turn is expected to drive the market in the region.
Increasing Activity in Offshore Zohr Gas field to Drive the Market in Egypt
The Zohr gas field is considered the biggest success in recent decades, in terms of discovery of prominent oil & gas fields. The commercial production from the field started during December 2017. The daily production during December 2017 was about 350 million cubic feet and is expected to reach 1 billion cubic feet by June 2018. The Zohr field holds about 30 trillion cubic feet of gas reserves. Hence, Zohr fields, due to its large reserves, is expected to drive a sizable investment in the upstream industry in Egypt. The field is present in deepwater and ultra-deepwater locations. Therefore, the development of this field is expected to drive the subsea production and processing system market in the country, during the forecast period.
Key Developments in the Market
February 2018: Wintershall Norge AS awarded a contract to Aker Solution, to provide Subsea Production System, umbilical and services for its operations in Offshore Nova Oil and Gas field, Norway. Aker Solutions will provide two templates with manifolds, seven subsea trees, umbilical, and tie-in equipment.
The major players include - Aker Solutions ASA, Baker Hughes A GE Co, Halliburton Company, Schlumberger Limited, Weatherford International PLC, National-Oilwell Varco, Inc., Oceaneering International, TechnipFMC PLC, Kerui Group Co. Ltd, Rongsheng Machinery Manufacture Ltd, Drill-Quip Inc., amongst others.
Reasons to Purchase This Report
Current and future subsea production and processing system market outlook in the developed and emerging markets
Analyzing various perspectives of the market with the help of Porter’s five forces analysis
The segment that is expected to dominate the market
Regions that are expected to witness the fastest growth during the forecast period
Identify the latest developments, market shares, and strategies employed by the major market players
3 months analyst support, along with the Market Estimate sheet (in excel)
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