Gulf Of Mexico Subsea Systems Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Gulf Of Mexico Subsea Systems Market Analysis
The Gulf of Mexico subsea systems market is expected to record a CAGR of more than 4.5% throughout the forecast period.
In 2020, COVID-19 had a detrimental effect on the market. Presently, the market has reached pre-pandemic levels.
- Over the long term, the Gulf of Mexico Subsea Systems market is expected to thrive in the coming years due to high resource potential in the form of huge oil and gas reserves and a high active rig count.
- On the other hand, frequent natural calamities like hurricanes are expected to impede market growth in the near future.
- Nevertheless, the high private participation due to the liberal policies of the countries having authoritarian control in the region places a tremendous opportunity for the market. The countries involved are the United States, Mexico, and Cuba.
- The GOM Federal Offshore or the United States (US) PART region is expected to dominate the market during the forecast period due to the various upcoming projects in the region.
Gulf Of Mexico Subsea Systems Market Trends
Subsea Production Segment to Dominate the Market
- The subsea system consists of a subsea completed well, subsea Christmas trees and wellhead systems, a subsea tie-in to the flowline system, jumpers, umbilicals, and riser system subsea equipment to operate the well. The single or clustered well is usually connected through the flow line to a fixed platform, FPSO (Floating Production, Storage, and Offloading), or onshore facilities. Moreover, an existing subsea production system can be connected to a newly operated production well using a subsea tie-back, which is popular for developing new oil and gas reserves.
- With the rising number of maturing onshore oil fields in recent years, there has been growth in offshore exploration and production (E&P) activities. For instance, the Gulf of Mexico region continuously witnessed steady growth in crude oil and natural gas production since the 1980s. The growth is attributed to the huge oil and gas discoveries in the shallow as well as deepwater areas of the Gulf and the technology development for offshore drilling operations. According to Baker Hughes, as of March 2023, the Gulf of Mexico region had around 17 offshore rigs.
- In 2021, about 15.2% of U.S. crude oil was produced from wells located offshore in the federally administered waters of the Gulf of Mexico. The region is expected to provide more oil and gas production for the adjoining countries and international markets, as many upstream projects are lined up for the near term.
- In April 2022, Houston-based offshore energy services firm Helix Energy Solutions entered into a new multi-year contract with Shell to provide well-intervention services in the US Gulf of Mexico. Under the agreement, Helix is expected to provide either the Q4000 or Q5000 riser-based semisub well intervention vessel, a 10,000 or 15,000 intervention riser system, remotely operated vehicles, and project management and engineering services to cover operations from fully integrated well intervention to fully integrated plug and abandonment well services.
- Moreover, with the increasing deepwater and ultra-deepwater activities in the Gulf of Mexico, the deepwater fields' production is expected to reach 7.6 million barrels per day by 2025 and 9 million barrels per day by 2040. Hence, the demand for subsea production systems is expected to increase, further driving the market.
- Therefore, the oil and gas industry is shifting toward deeper regions, searching for oil and gas to meet the increasing demand. Hence, the subsea production systems share is expected to be the largest among subsea system segments and drive the market.
GOM Federal Offshore or the United States PART Expected to Dominate the Market
- The Gulf of Mexico region has great significance in the subsea industry due to the vast energy resources and infrastructure in the onshore and offshore areas. The GOM federal offshore area is the intellectual property right of the United States Federal Government. The crude oil production in the region accounts for 15% of total US crude oil production, and federal offshore natural gas production in the Gulf accounts for 5% of total US dry production.
- According to the United States Energy Information Administration (EIA), the average crude oil production from the GOM Federal Offshore region was 1,700 thousand barrels per day as of 2021. The number is expected to show an upward trend in the coming years due to the various upcoming projects in offshore waters.
- In November 2021, the US government announced plans to auction around 80.9 million acres of its Gulf of Mexico region for oil and gas extraction. The lease for sale is double the size of Florida. Another separate lease sale offered by the government in Alaska's Cook Inlet is expected to provide another 192 million barrels of oil and 301 billion cubic feet of gas to drillers.
- The Offshore Mad Dog Phase 2 project, located in 4,500 feet of water in the Gulf of Mexico, is also expected to drive the market. It includes a new semi-submersible floating production platform with an output of around 140,000 gross barrels of crude oil per day from 14 production wells. It injects up to 140,000 barrels of water per day using a local system to enhance oil recovery. The production is expected to get started in 2022, with British Petroleum as the operator.
- Hence, the upcoming projects in deepwater and ultra-deepwater are likely to drive the growth of the subsea systems in the GOM Federal Offshore region during the forecast period.
Gulf Of Mexico Subsea Systems Industry Overview
The Gulf of Mexico subsea systems market is moderately consolidated. Some of the key players in the market include Subsea 7 SA, TechnipFMC PLC, Oceaneering International, Inc., National-Oilwell Varco Inc., and Baker Hughes Co, among others.
Gulf Of Mexico Subsea Systems Market Leaders
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Oceaneering International, Inc.
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Baker Hughes Company
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National-Oilwell Varco Inc.
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TechnipFMC PLC
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Subsea 7 SA
*Disclaimer: Major Players sorted in no particular order
Gulf Of Mexico Subsea Systems Market News
- July 2022: Subsea Integration Alliance partners OneSubsea and Subsea 7 secured an engineering, procurement, construction and installation (EPCI) contract with Kosmos Energy to deliver an integrated subsea boosting system for the Odd Job field in the Gulf of Mexico.
- January 2022: Subsea 7 SA announced that the company won the contract for the installation of subsea systems at the Beacon Offshore Energy LLC's Shenandoah host facility, which is located in the Gulf of Mexico in water depths up to 6,300 feet.
Gulf of Mexico Subsea Systems Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast, in USD Billion, till 2028
- 4.3 Historic and Demand Forecast of Offshore Drilling Rigs in Numbers, till 2028
- 4.4 Historic and Demand Forecast of Offshore CAPEX in billions, by Water Depth, 2019-2028
- 4.5 Recent Trends and Developments
- 4.6 Government Policies and Regulations
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4.7 Market Dynamics
- 4.7.1 Drivers
- 4.7.2 Restraints
- 4.8 Supply Chain Analysis
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4.9 Industry Attractiveness - Porter's Five Forces Analysis
- 4.9.1 Bargaining Power of Suppliers
- 4.9.2 Bargaining Power of Consumers
- 4.9.3 Threat of New Entrants
- 4.9.4 Threat of Substitute Products and Services
- 4.9.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Subsea Producing Systems
- 5.1.2 Subsea Processing Systems
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5.2 Component
- 5.2.1 Subsea Umbical Riser and Flowlines (SURF)
- 5.2.2 Trees
- 5.2.3 Wellhead
- 5.2.4 Manifolds
- 5.2.5 Other Components
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5.3 Geography
- 5.3.1 GOM Federal Offshore or the United States PART
- 5.3.2 Mexico PART
- 5.3.3 Cuba PART
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 Subsea 7 SA
- 6.3.2 Akastor ASA
- 6.3.3 TechnipFMC PLC
- 6.3.4 National-Oilwell Varco Inc.
- 6.3.5 Baker Hughes Co.
- 6.3.6 Schlumberger Ltd.
- 6.3.7 Halliburton Co.
- 6.3.8 Oceaneering International Inc.
- 6.3.9 Dril-Quip Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityGulf Of Mexico Subsea Systems Industry Segmentation
Subsea technology involves fully submerged ocean equipment, operations, or applications, especially when some distance offshore, in deep ocean waters, or on the seabed. The term subsea is frequently used in connection with oceanography, marine or ocean engineering, ocean exploration, remotely operated vehicles (ROVs), autonomous underwater vehicles (AUVs), submarine communications or power cables, etc.
The Gulf of Mexico subsea systems market report is segmented by type, component, and geography (GOM Federal Offshore or the United States Part, Mexico Part, and Cuba Part). By type, the market is segmented into subsea production systems and subsea processing systems. By component, the market is segmented into subsea umbilical riser and flowlines (SURF), trees, wellheads, manifolds, and other components. The report also covers the market size and forecasts for the Gulf of Mexico Subsea Systems Market across major regions. For each segment, market sizing and forecasts have been done based on revenue (USD billion).
| Type | Subsea Producing Systems |
| Subsea Processing Systems | |
| Component | Subsea Umbical Riser and Flowlines (SURF) |
| Trees | |
| Wellhead | |
| Manifolds | |
| Other Components | |
| Geography | GOM Federal Offshore or the United States PART |
| Mexico PART | |
| Cuba PART |
Gulf of Mexico Subsea Systems Market Research FAQs
What is the current Gulf Of Mexico Subsea Systems Market size?
The Gulf Of Mexico Subsea Systems Market is projected to register a CAGR of greater than 4.5% during the forecast period (2024-2029)
Who are the key players in Gulf Of Mexico Subsea Systems Market?
Oceaneering International, Inc., Baker Hughes Company, National-Oilwell Varco Inc., TechnipFMC PLC and Subsea 7 SA are the major companies operating in the Gulf Of Mexico Subsea Systems Market.
What years does this Gulf Of Mexico Subsea Systems Market cover?
The report covers the Gulf Of Mexico Subsea Systems Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Gulf Of Mexico Subsea Systems Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Gulf Of Mexico Subsea Systems Industry Report
Statistics for the 2024 Gulf Of Mexico Subsea Systems market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Gulf Of Mexico Subsea Systems analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
