Offshore drilling bonanza

Offshore drilling bonanza

The offshore drilling services market will grow to $100Bn a year in the next few years from today’s $73.1Bn according to a report from market researchers MarketsandMarkets, creating new jobs in contract drilling, directional drilling and logging in particular.

 

High oil prices will sustain the confidence of oil and gas operators in making new investments while deep and ultra deep water activities will enjoy a surge to drive the market to $121.1Bn by 2018, a compound annual growth rate of 10.6%.  New offshore discoveries and exponential growth in worldwide energy demand will also drive the offshore drilling sector which has been recovering from a post Gulf of Mexico oil spill slump in 2010. 

 

The highest revenue growth over the forecast period is expected to come in the Asia Pacific region, says the report ‘Offshore drilling market by services, applications and geography – global trends and forecast to 2018’. The key markets for offshore drilling services will remain the ‘golden triangle’ of Brazil, the United States Gulf of Mexico and West Africa, although Asia Pacific is the emerging market.

 

Increasing maturity of onshore reserves is shifting the focus of operators towards deep water offshore activity.  Offshore contract drilling holds the biggest share of the services market, 78% of total revenues in 2012, with directional drilling accounting for 18% and logging 4%. Offshore contract drilling companies are experiencing increasing day rates and a record backlog of orders, encouraging them to invest in their fleets of mobile offshore drilling units.

 

Photo: Kris Krug

Please rate

Comments 

Name
Email
  Ctrl + Enter

Most Read

Turner & Townsend wins £23.3m Lower Thames Crossing contract

Turner & Townsend wins £23.3m Lower Thames Crossing contract

The award of the commercial partner marks the completion of the Lower Thames Crossing integrated client team, comprised of National Highways, a technical partner, and an integration partner.   The eight-year contract will see Turner & Townsend work as part of National Highways

HS2 prepares to host biggest ever ‘Meet the Contractor’ event

HS2 prepares to host biggest ever ‘Meet the Contractor’ event

Businesses from across the UK are being invited to register to attend the online meet the contractor event, and snap up the opportunity to participate in one-to-one meetings with HS2’s contractors. HS2 will be offering meetings with Tier 2 contractors, providing even more opportunities

One year on: HS2 reaches 20,000 jobs landmark

One year on: HS2 reaches 20,000 jobs landmark

Companies right across the country are now forming part of HS2’s ever-growing supply chain. Contracts have already been awarded to over 2,200 businesses, 97% of which are UK-based.   HS2’s jobs boost is also benefitting those in need, with bespoke initiatives designed to

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.