Deepwater and Ultra-deepwater Market Size
| 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 Market Trends
This section covers the major market trends shaping the Deepwater & Ultra-Deepwater Exploration & Production Market according to our research experts:
Deepwater Segment to Witness Significant Growth
- The constant and ever-increasing demand for fossil fuels, particularly oil and gas, has pushed the exploration and production industry to drill in deep waters ranging from 1000 to 5000 feet.
- Owing to the oil price volatility starting in mid-2014, the oil and gas operators worldwide undertook several cost-cutting and efficiency gains measures, which resulted in the cost-reduction of deepwater approximately 30-40% from 2014-2017. Furthermore, with the improvement in oil prices, several deepwater has become viable to operate and have resulted in increased investments for deepwater exdeepwater and production activities. Also, the breakeven for deepwater exdeepwater and production has fallen since 2014 and is expected to follow the same trend during the forecast period.
- From 2014 to 2020, global deepwater exdeepwater has increased, and regions, such as Brazil, the United States Gulf of Mexico (GoM), Norway, Angola, and Nigeria constitute a large amount of this capital expenditure, respectively, with West Africa anticipated to have the greatest regional growth.
- In April 2021, Reliance Industries Limited (RIL) and BP Plc announced the start of production from the Satellite Cluster gas field in block KG D6 off the east coast of India. They have been developing three deepwater projects in block KG D6 - R Cluster, Satellite Cluster, and MJ - which together are expected to produce around 30 mmscmd (1 billion cubic feet a day) of natural gas by 2023, meeting up to 15% of India's natural gas demand.
- Moreover, the recent waves of cost reductions and critical technological breakthroughs have enabled many oil and gas exploration and production companies to expand their portfolio of sustainable deepwater.
- Therefore, based on the above-mentioned factors, there is expected to be significant demand for the deepwater segment and the deepwater and deepwater exploration and production market during the forecast period.
Middle-East and Africa to Dominate the Market
- The Middle-East and African region holds a leading share of oil and gas production. The region's oil production comes from offshore projects, with deepwater and ultra-deepwater accounting for the major share of offshore production.
- The Angolan offshore is among the most prospective plays in Africa and continues to draw high levels of investment. Drilling results are broadly positive, with exploration yielding several high-impact discoveries in recent years. A heavy focus on the Kwanza Basin pre-salt has returned five major discoveries since 2011: Bicuar, Cameia, Lontra, Mavinga, and Orca, in blocks 20 and 21.
- On the flip side, with Angola's most prospective acreage in the deepwater, ultra-deepwater, and pre-salt areas, exploration can be characterized as high-risk, high-reward. The bulk of drilling is expected to continue to target deepwater and pre-salt prospects, spearheaded by industry giants, such as Chevron, BP, Eni, Exxon Mobil, Statoil, and Total, along with national oil company Sonangol.
- Nigeria holds the top position among the ten countries, with the largest remaining crude oil and condensate deepwater reserves. Most reserves are along the country's Niger River Delta and offshore in the Bight of Benin, the Gulf of Guinea, and the Bight of Bonny. As of now, exploration activities are mostly focused on the deep and ultra-deep offshore, although some onshore exploration is also taking place.
- The first Nigerian commercial deepwater discovery, the Bonga oil field, was awarded to Shell Nigeria Exploration and Production Company (SNEPCO) in 1993. However, production did not start till 2005. After Bonga's success, several other deepwater oil explorations followed in quick succession, including Agbami (Chevron), Erha (ExxonMobil), and Akpo, Egina, and Usan (Total), among others.
- Furthermore, in February 2020, ENI started drilling a deepwater exploration well for offshore Oman in the Block 52 concession. The well is believed to be the nation's first in deep water offshore.
- In January 2021, Egypt's Minister of Petroleum and Mineral Resources signed a concession agreement with Mubadala Petroleum for oil and gas exploration activities in Red Sea block 4.
- Therefore, increasing investments and surging demand for oil and gas exports are expected to drive the deepwater and ultra-deepwater exploration and production market in the Middle-East and African region during the forecast period.
Deepwater and Ultra-deepwater Industry Overview
The deepwater and ultra-deepwater exploration and production market is moderately consolidated. The key players in the market include BP PLC, Chevron Corporation, China National Offshore Oil Corporation, Exxon Mobil Corporation, and Shell PLC, among others.
Deepwater and Ultra-deepwater Market Leaders
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BP PLC
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Chevron Corporation
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China National Offshore Oil Corporation
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Exxon Mobil Corporation
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Shell PLC
*Disclaimer: Major Players sorted in no particular order
Deepwater and Ultra-deepwater Market News
- In July 2021, CNOOC Limited commenced production on Lingshui 17-2 gas field. The Lingshui 17-2 gas field is located in the northern sea of Qiongdongnan Basin, with a water depth of approximately 1,560 meters.
- In August 2021, BOE Exploration & Production LLC awarded a USD 252 million firm contract for its newbuild ultra-deepwater drillship to Transocean Ltd.
- In December 2021, TotalEnergies started drilling the ultra-deepwater Venus-1X exploration well offshore Namibia, using a Maersk Drilling-owned drillship. The Venus-1X offshore exploration well is located in Namibia Block 2913B (PEL 56).
Deepwater and Ultra-deepwater Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Offshore CAPEX Forecast, in USD billion, by Water Depth, 2022-2027
4.4 Offshore CAPEX Forecast, in USD billion, by Region, 2022-2027
4.5 Recent Trends and Developments
4.6 Government Policies and Regulations
4.7 Market Dynamics
4.7.1 Drivers
4.7.2 Restraints
4.8 Supply Chain Analysis
4.9 Porters' 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
5.1 Water Depth
5.1.1 Deepwater
5.1.2 Ultra-Deepwater
5.2 Geography
5.2.1 North America
5.2.2 Europe
5.2.3 Asia-Pacific
5.2.4 South America
5.2.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 BP PLC
6.3.2 Chevron Corporation
6.3.3 China National Offshore Oil Corporation
6.3.4 Eni S.p.A.
6.3.5 Equinor ASA
6.3.6 Exxon Mobil Corporation
6.3.7 Petroleo Brasileiro SA
6.3.8 Petroleos Mexicanos
6.3.9 Shell PLC
6.3.10 TotalEnergies SE
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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 Market Research 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.
Which is the fastest growing region in Deepwater and Ultra-Deepwater Exploration and Production Market?
Middle East and Africa is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Deepwater and Ultra-Deepwater Exploration and Production Market?
In 2024, the Middle East and Africa accounts for the largest market share in Deepwater and Ultra-Deepwater Exploration and Production Market.
What years does this Deepwater and Ultra-Deepwater Exploration and Production Market cover?
The report covers the Deepwater and Ultra-Deepwater Exploration and Production Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Deepwater and Ultra-Deepwater Exploration and Production Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Deepwater and Ultra-deepwater Industry Report
Statistics for the 2024 Deepwater and Ultra-deepwater market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Deepwater and Ultra-deepwater analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
