The Subsea System Market report evaluates the important characteristics of the Subsea System market based on present industry scenarios, market demands and business strategies. The Market report separates the Subsea System industry based on the Types, Applications, Key Players & Regions.
The offshore drilling activity experienced a slowdown after the oil price crisis, post mid-2014. But oil price has experienced substantial recovery after 2016. Due to the growing oil & gas demand, recovery in oil price and increasing number of onshore fields reaching their maturity, the exploration & production (E&P) activity is expected to make a shift toward deeper offshore Regions, which, in turn, is expected to drive the market growth during the forecast period.
Declining Offshore Production Cost to Drive the Market
Since 2015, the offshore spending has been reduced significantly. Though some spending reduction is due to drop in service prices, mainly, spending has decreased due to better process efficiency and cost savings through sustainable exercises, such as major changes in drilling strategy to optimize the production. As of 2017, about 5 billion barrels of pre-sanctioned offshore oil and gas reserves were breakeven at or lower than USD 50 per barrel. The declining offshore production cost is expected to drive the offshore drilling activity during the forecast period, which, in turn, is expected to drive the global subsea system market.
Growing Deepwater Activity to Drive the Market
Land-based and shallow water oil & gas fields are approaching their maturity. Hence, in order to meet the growing demands, upstream operating companies are exploring deeper offshore Regions. Deepwater offshore drilling and production activity requires a more expensive subsea system, due to complexity and safety risks involved in the process. Hence, deeper offshore activity is expected to have a significant positive impact on the market.
Europe is Expected to Drive the Market Growth During the Forecast Period
Europe has a significant market share, owing to offshore activity in the Russian fields and the fields in the North Sea adjoining the United Kingdom and Norway. North Sea offshore production has witnessed a substantial drop in breakeven prices, with some fields breaking even at as low as USD 25 per barrel. The drop in breakeven cost, combined with the recovery in oil prices, is expected to drive the offshore drilling activity, which, in turn, is expected to drive the market in the Region.
China to Experience Significant Growth
Despite low oil prices, offshore activity in China has witnessed relatively higher stability compared to other oil producing countries during 2014-17. Chinaâs offshore activity is mainly concentrated in Bohai Bay, Pearl River Delta, and Beibu Gulf areas. As of May 2017, 5% of the total global offshore fleet was active in the country. Growing industrialization, urbanization, and increasing per capita income are the drivers for the energy demand in the country. In order to meet this energy demand, the E&P activity, including offshore, is expected to increase in China, which, in turn, is expected to drive the subsea system market in the country.
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Subsea System market report provides the comprehensive analysis of the market, based on leading players of present, past of Subsea System Industry and resourceful data that will act as a supportive guide for leading players.
Major Key Players of Subsea System Market Report: Aker Solutions ASA, Baker Hughes A GE Co, Halliburton Company, Schlumberger Limited, Weatherford International PLC, National-Oilwell Varco, Inc., Oceaneering Internationalm, TechnipFMC PLC, Kerui Group Co. Ltd, and Rongsheng Machinery Manufacture Ltd.
Key Stakeholders in Subsea System Market Report:
- Subsea System Manufacturers
- Subsea System Distributors/Traders/Wholesalers
- Subsea System Subcomponent Manufacturers
- Industry Association
- Downstream Vendors
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In a word, the Subsea System Market report provides major statistics on the state of the Subsea System industry and is a valuable source of guidance and direction for companies and individuals interested in the market.