Offshore drilling includes services related to drilling wells including type of the rig required, depth and direction of well to be dug and services and expertise required to accomplish the desired goal. Offshore drilling market is estimated to be $78.57 Billion in 2014 and is projected to grow with a CAGR of 4.54% from 2015 to 2020. Crude oil prices which have witnessed a sharp decline in the last one year are expected to increase to USD 80/ barrel by 2018. This rebound in oil price will be spurred by the delay in capacity addition as the oil & gas companies are currently shelving new projects to reduce their capital expenditure. With the increase in the price of crude oil, the investments for E&P activities will also increase which will lead to new projects in regions that are looking to overturn their production decline such as Europe and Asia-Pacific. This will in turn create further demand for the offshore drilling in these regions.

Years considered for the study: 2013, 2014, 2015 and 2020

Base Year: 2014

Forecast years: 2015-estimated, 2020-predicted

Research Methodology:

Major regions were identified along with countries contributing the maximum share

Secondary research was conducted to find the depths (shallow, deep, ultra-deep water) of offshore oilfields in the regions and their contribution

Services were identified on the basis of rigs contracted in the region and the split was calculated by conducting primary�s with industry participants, subject matter experts, C-level executives of key market players, and industry consultants among other experts, which helped to obtain and verify critical qualitative and quantitative information as well as assess future market prospects

Top companies revenues (regional/global), rig pricing, and industry trends along with top-down, bottom-up, and MnM KNOW were used to estimate market value

This was further broken down into several segments and subsegments on the basis of information gathered

Study addresses several of the stakeholders which include OEMs, EPC companies, Utility service providers, Distributers & Suppliers, Consulting firms, Private Equity groups, investment houses, equity research firms and other stakeholders. It gives them information about market segments to focus in next two to five years for prioritizing the efforts and investments

Scope of the report:

This study estimates the global market of offshore drilling, in terms of dollar value, till 2020

It offers a detailed qualitative and quantitative analysis of this market

It provides a comprehensive review of major market drivers, restraints, opportunities, challenges, winning imperatives, and key issues of the market

It covers various important aspects of the market. These include analysis of value chain, Porter�s Five Forces model, competitive landscape, market dynamics, market estimates in terms of value, and future trends in the offshore drilling market.

The market has been segmented into -

On the basis of Service Type

Contract Drilling

Directional Drilling

Logging While Drilling

Measurement While Drilling

On the basis of Application

Shallow Water

Deep Water

Ultra-Deep Water

On the basis of Region

North America

South America

Asia-Pacific

Middle East

Europe

Africa

Available Customization

With the market data provided above, MarketsandMarkets offers customizations as per the company�s specific needs. The following customization options are available for the report:

Detailed analysis and profiling of additional market players (Up to 5)

Country-wise analysis can be extended by one country for every region

The increase in the global oil and gas production in North America and the Middle East accompanied by the maturing onshore oilfields shifted the focus of operators towards offshore for new E&P activities. However, due to the recent crude oil price slump, offshore drilling companies will see weaker revenues over the next few quarters. This downfall is a result of the spending cuts and increase in demand for better pricing and terms of the contract negotiations and renewals. Offshore drilling companies are likely to face a dip in the demand and pricing for services. These companies are therefore trying to capitalize on scale, improve their operational efficiency and their cost bases.

Global offshore drilling market is expected to grow from USD 78.6 Billion in 2014 to USD 89.8 Billion by 2020, at a CAGR of 4.54% during 2015-2020. Asia-Pacific accounted for the largest market share in 2014 and is projected to grow at a CAGR of 4.49% during 2015-2020.

Offshore drilling market has been classified on the basis of applications such as shallow water, deepwater and ultra-deepwater based operations.

Nearly half of the offshore drilling market is covered by shallow water applications, but with the advent of advanced technology, the operators are entering into deepwater and ultra-deepwater zones. Moreover, due to decreasing production in shallow water basins, the large potential of untapped subsea hydrocarbon reserves is driving increased focus in deep water drilling. There have been increasing deep water oil discoveries in India, Africa, Australia, the U.S., Russia, and Norway. Oil discoveries in Africa especially in Ghana, Congo, Mozambique, and Angola are creating lucrative business opportunities where offshore drilling market players are trying to focus to enhance their revenue.

Offshore drilling market has also been classified on the basis of service type into offshore contract drilling, directional drilling, logging-while-drilling and measurement while drilling. More than half of the offshore drilling market is captured by offshore contract drilling services. The market is also witnessing an increase in directional drilling. However due to continuous decline of oil price since mid-2014, the market has witnessed a drastic setback leading to retirement/cold stacking of many of the rigs and delay in the delivery of new rigs. Several operators have either cancelled or postponed their contracts leading to lower day rates.

Asia-Pacific is the leading market in the offshore drilling owing to the offshore activities taking place in South China Sea. China, Thailand, India, Australia and Indonesia are mainly driving growth of the offshore drilling market in the region. Also, Liberalization of Mexican oil & gas industry is another key driver fueling the demand for offshore drilling market in South America. Mexico is one of the largest non-OPEC oil producers in the world. With the liberalization, state run monopoly has ended, paving way for foreign E&P companies.

The recent downturn in the crude oil prices has resulted in the decline of the exploration & production (E&P) activities all over the world. As offshore drilling is highly capital intensive industry, it was affected more as compared to onshore drilling industry. Many contracts were cancelled, postponed, or reworked by companies for rigs. Rigs still in operation are operating on very low dayrates compared to the rates in 2013-14.The current expenditure in E&P has fallen since 2014 but the current capacity reduction is expected to resolve the current demand and supply imbalance of oil and gas. Thus, the price of oil and gas is expected to rise in the future amounting to more capital expenditure on oil and gas E&P activities. As a result, the expected increase in the demand for energy in the future is expected to push the need for optimum exploration & production, thus boosting the demand for the offshore drilling across the globe.