Global Offshore Drilling Rigs Market Is Anticipated To Witness Growth Due To Growing Demand For Energy Security And Immense Technological Development In The Sector

Offshore Drilling Rigs Market

Offshore drilling rigs are large structures that are either built on the sea surface or anchored in the water. They are used to drill oil and gas wells. These facilities must be able to handle the harsh conditions of the environment. They must also be cost effective and sustainable. These areas contain vast natural resources. They can benefit the economy of a country and society. However, the process is challenging.

Drilling rigs must be properly managed to prevent accidents and maintain safety. The machinery on an offshore rig must be able to stand up to the harsh environment. To protect the equipment from corrosion, rigs use stainless steel and nickel plating. An automatic mud-mixing system reduces exposure to hazardous materials. Blowout prevention systems are installed on the seafloor to prevent pollution. Rigs have facilities to extract and process oil. A heliport is often located on the offshore rig. Helicopters are used to transport staff to the offshore site.

Market Dynamics:

Rising demand for energy security is estimated to augment growth of the global Offshore Drilling Rigs Market over the forecast period. For instance, a Japanese oil and gas corporation, INPEX has hired a semi-submersible drilling rig HAKURYU-5 in January 2022. The contract is given for drilling exploratory wells and locating natural gas from March to July 2022. Moreover, increasing cost of installation and rising strict government regulations are anticipated to restrain growth of the global offshore drilling rigs for market over the forecast period.

Impact of COVID-19:

COVID-19 had a significant impact on many industries globally. It also affected the economy globally. Nationwide lockdowns and strict restrictions were imposed by governments across the world. These resulted in halting production activities in many countries. Several companies reduced their workforce, which affected their production and also disturbed supply chains. The pandemic also affected the oil industry, as oil prices were at their lowest. Oil prices were as low as negative, which was for the first time in history. Thus, the global offshore drilling rigs for market witnessed huge loss during the pandemic.

Key Takeaways:

The global Offshore Drilling Rigs Market is estimated to witness robust growth, exhibiting CAGR of XX% over the forecast period, owing to growing agreements among major players.

For instance, Keppel Corp., merged with Sembcorp Marine, a Singapore-based marine and offshore engineering company in April 2022. With this merger, both the companies will look into new prospects of renewable energy.

Asia Pacific is estimated to witness high growth in the global offshore drilling rigs for market over the forecast period, due to growing presence of undiscovered oil and gas reserves.

Key players active in the global Offshore Drilling Rigs Market are Keppel Corporation Limited, Seadrill Ltd., Samsung Heavy Industries Co. Ltd, Transocean Ltd, China Oilfield Services Limited, Nabors Industries, Valaris plc, Noble Drilling, Seadrill, Odfjell Drilling, Saipem, Archer Well Company, KCA Deutag, Borr Drilling, and Maersk Drilling.