Home to World’s Largest Offshore Drilling Facilities, North America to Continue to Shine in Offshore Drilling Rigs Market

The use of crude oil and its derivatives in a host of applications translates to consumption volumes of over 100 mn barrels every day globally. The figure is no doubt a rough estimate and is bound to run up or down depending on factors such as industrial growth, population expansion, and consumption of power/electricity. However, as consumption volumes rise up at a steady pace and as oil and gas companies are feeling the pressure of providing for an ever-rising consumer base, the lookout for new reserves has become an important part of the global oil and gas market. This situation has also led to vast developments in the field of offshore drilling in the past few years and is proving highly beneficial for auxiliary markets such as drilling rigs.

In a recent market research report, Transparency Market Research states that the global offshore drilling rigs market will expand at a 3.5% CAGR from 2017 to 2022, rising to an opportunity of US$41,922.8 mn by 2022 from a valuation of US$35,336.2 mn in 2017.

Enlisted below are some of the crucial aspects of the global offshore drilling rigs market as examined by TMR analysts:

How large is the potential market for offshore drilling rigs?

The field of offshore drilling accounts for nearly 30% of the world’s total production of oil and more than 27% of the world’s total production of gas. Globally, these numbers have remained steady ever since the beginning of this century and are envisioned to go up in the next few years. Furthermore, nearly 20% of the world’s total oil reserves and nearly 30% of the world’s total gas reserves are on offshore locations. These locations are all potential markets for offshore drilling rigs.


What concerns, if any, could negatively impact the global offshore drilling rigs market?

Offshore drilling activities often come under the radar of environmentalists as concerns such as oil spills, fires, and other accidents that are often associated with drilling in deeper sites cause harm to marine ecosystem and lead to pollution. Moreover, as companies push exploration to newer and greater depths in offshore locations that often suffer from severe weather, the functionality of drilling rigs and other equipment faces significant risk of failing to operate in the required manner. What makes the situation worse is the fact that the distant locations of offshore reserves can significantly delay rescue efforts. These factors have compelled governments to regulate the offshore drilling industry through stringent rules and safety guidelines. These factors could restrict the growth of the market to a certain extent.

Which regional market presents most lucrative growth opportunities for offshore drilling rigs? 

A. Home to some of the world’s largest offshore drilling projects, North America is presently the leading regional market for offshore drilling rigs and accounts for a significant share of the global market. The North America market is also expected to exhibit a promising course of expansion in the next few years, contributing a massive share of revenue to the global market in the near future. The regional market is expected to exhibit a promising 3.9% CAGR from 2017 to 2022, presenting an opportunity of US$9,829.6 mn by 2022 before the offshore drilling rigs industry.

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