Market Size of Deepwater and Ultra-Deepwater Exploration and Production Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 10.50 % |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | Middle East and Africa |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Deepwater and Ultra-deepwater Market Analysis
The deepwater and ultra-deepwater exploration and production market is expected to register a CAGR of more than 10.5% during the forecast period of 2022 - 2027. With the COVID-19 outbreak in Q1 of 2020, exploration and production companies were forced to delay turnarounds and postpone new operations due to the high risks of coronavirus. Factors such as rising deepwater oil and gas exploration activities, especially in the Gulf of Mexico and the North Sea, and improved viability of deepwater and ultra-deepwater projects are expected to drive the market during the forecast period. However, stringent environmental and safety regulations for oil and gas exploration and production activities to limit the carbon footprint and increasing demand for renewable and sustainable energy resources are expected to hinder the market's growth during the forecast period.
- The deepwater segment is expected to witness a significant growth rate during the forecast period.
- Factors such as technological improvements and the discovery of new oil & gas fields in Gabon, Senegal, Guyana, Trinidad & Tobago, Egypt, and the Gulf of Mexico are actively promoting the development of deepwater and ultra-deepwater reserves. This, in turn, is expected to create significant opportunities for the operating countries in the near future.
- Middle-East and Africa dominated the global market, with the majority of demand coming from Nigeria, Angola, and Egypt.
Deepwater and Ultra-deepwater Industry Segmentation
The deepwater and ultra-deepwater exploration and production market report includes:
| Water Depth | |
| Deepwater | |
| Ultra-Deepwater |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| South America | |
| Middle-East and Africa |
Deepwater and Ultra-Deepwater Exploration and Production Market Size Summary
The deepwater and ultra-deepwater exploration and production market is poised for substantial growth, driven by increasing activities in regions like the Gulf of Mexico and the North Sea. The market's expansion is supported by technological advancements and the discovery of new oil and gas fields in countries such as Gabon, Senegal, and Guyana. Despite challenges posed by stringent environmental regulations and a shift towards renewable energy, the demand for fossil fuels continues to propel the industry into deeper waters. The Middle-East and Africa region, particularly Nigeria and Angola, plays a significant role in this market, with deepwater projects contributing majorly to offshore production. The region's oil production is heavily reliant on deepwater and ultra-deepwater activities, attracting significant investments and yielding high-impact discoveries.
The market landscape is moderately consolidated, with key players like BP, Chevron, and Exxon Mobil leading the charge. Recent developments, such as the commencement of production in the Lingshui 17-2 gas field by CNOOC Limited and the drilling of the Venus-1X exploration well by TotalEnergies, highlight the ongoing investments and technological breakthroughs in the sector. The cost reductions and efficiency gains achieved in recent years have made many deepwater projects viable, further boosting investments. As oil prices stabilize, the breakeven costs for deepwater operations continue to decline, fostering a favorable environment for exploration and production activities. This trend is expected to sustain the market's growth trajectory, with significant opportunities emerging in the deepwater segment during the forecast period.
Deepwater and Ultra-Deepwater Exploration and Production Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast in USD billion, till 2027
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1.3 Offshore CAPEX Forecast, in USD billion, by Water Depth, 2022-2027
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1.4 Offshore CAPEX Forecast, in USD billion, by Region, 2022-2027
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1.5 Recent Trends and Developments
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1.6 Government Policies and Regulations
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1.7 Market Dynamics
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1.7.1 Drivers
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1.7.2 Restraints
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1.8 Supply Chain Analysis
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1.9 Porters' Five Forces Analysis
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1.9.1 Bargaining Power of Suppliers
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1.9.2 Bargaining Power of Consumers
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1.9.3 Threat of New Entrants
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1.9.4 Threat of Substitute Products and Services
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1.9.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Water Depth
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2.1.1 Deepwater
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2.1.2 Ultra-Deepwater
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2.2 Geography
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2.2.1 North America
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2.2.2 Europe
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2.2.3 Asia-Pacific
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2.2.4 South America
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2.2.5 Middle-East and Africa
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Deepwater and Ultra-Deepwater Exploration and Production Market Size FAQs
What is the current Deepwater and Ultra-Deepwater Exploration and Production Market size?
The Deepwater and Ultra-Deepwater Exploration and Production Market is projected to register a CAGR of greater than 10.5% during the forecast period (2024-2029)
Who are the key players in Deepwater and Ultra-Deepwater Exploration and Production Market?
BP PLC, Chevron Corporation, China National Offshore Oil Corporation, Exxon Mobil Corporation and Shell PLC are the major companies operating in the Deepwater and Ultra-Deepwater Exploration and Production Market.
