North America AUV Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

An offshore platform is an oil and gas production facility that is located offshore. Historically, oil and gas were generally produced on the ground. Nonetheless, offshore oil and gas development has become increasingly important since there are fewer fossil fuel-rich sites that can be accessed from the ground. The number of offshore oil and gas production facilities in the world was more than 3,000 in 2016, and that number is expected to increase.

As offshore platforms have a large number of subsea structures, such as pipelines, inspection and maintenance of these structures are of utmost importance. It is impossible for humans to dive and inspect some platforms, however, because they are installed in water depths of hundreds of meters. Because AUVs do not have wires, they can overcome this problem. Their operation flexibility is their greatest advantage. It is crucial for AUVs to ensure the accuracy of position sensing in order to take advantage of this flexibility.

AUVs are the preferred support system for deepwater drilling rigs and pipeline systems that can operate at depths of two miles. These wells and pipeline systems can be inspected, repaired and maintained using AUVs. Due to the rise in the installation of underwater infrastructure for oil and gas field development, AUVs have become almost indispensable in the oil and gas industry. There have been a number of new oil and gas discoveries in the region, both shallow and deepwater, which has resulted in an increase in the demand for AUVs.

With the rising number of maturing onshore oilfields in recent years, there has been growth in offshore exploration and production (E&P) activities. According to the United States Energy Information Administration, The new fields that were planned to be online in 2022 are expected to account for 5% of natural gas production and 14% of crude oil production by the end of 2023 in the US Federal Offshore Gulf of Mexico (GOM). The GOM natural gas production is also expected to average 2.1 billion cubic feet per day (Bcf/d) in 2023, down 0.1 Bcf/d from 2022. GOM crude oil production is expected to average 1.8 million barrels per day (MMb/d) in 2023, about the same as in 2022.

In July 2022, according to the Biden administration's five-year plan, all offshore oil drilling in the Atlantic and Pacific oceans was to be banned, while some drilling in the Gulf of Mexico and the south coast of Alaska was expected to be allowed. In response to rising energy prices, the fossil fuel sector has urged the administration to increase offshore drilling to reduce gas prices.

In February 2022, BP began operations at its Herschel expansion project in the Gulf of Mexico. As part of the first phase of the project, a subsea production system was to be developed, as well as the first of up to three wells to be drilled from the Na Kika platform. The first well will increase the platform's annual gross production by 10,600 barrels of oil equivalent per day. According to the bp statistical review of world energy, In 2021, North Amrerica produced 23,942 thousand barrels per day of oil, an increase of 21.1% from 2015.

Hence, increasing investments in the deepwater activities in the region is driving the North American UAV market.