Offshore Drilling Rigs Market By Type (Jack-up Rigs, Semi-Submersible Rigs & Drill Ships), Water Depth (Shallow Water, Deepwater, Ultra-Deep Water & Bottom Supported Rigs), & Region for 2024-2031

Offshore Drilling Rigs Market Valuation – 2024-2031

Offshore drilling rigs provide drilling facilities, extracting, storing, and processing petroleum and natural gas before refining and selling. These technological advancements can improve exploration and development, reduce environmental impact, and boost efficiency. An improved understanding of the marine environment extensively increases the need for offshore drilling activity. The market size surpass USD 113.18 Billion valued in 2024 to reach a valuation of around USD 200.86 Billion by 2031.

In the long run factors such as growing global energy consumption and exploration operations in undeveloped regions are projected to drive the market during the forecast period. The rising demand for cost-effective and efficient offshore drilling rings is enabling the market to grow at a CAGR of 8.20% from 2024 to 2031.

Offshore Drilling Rigs MarketDefinition/ Overview

Drilling rigs extract vital resources such as minerals, oil, and natural gas from the earth’s crust. There are various types of platforms, including transportable land-based and offshore units, each tailored to specific geological conditions and extraction requirements.Drilling platforms use complex technical procedures to extract resources from subsurface reservoirs providing energy to many sectors and contributing significantly to global resource use and output.

The global drilling rig market is driven by increased demand for energy resources, such as oil and natural gas, due to industrialization and urbanization. Automation and advanced drilling techniques lead to increased efficiency and lower extraction costs.

Exploration of untapped reserves especially in emerging economies, contributes to market expansion. The global drilling rig market is expected to rise steadily due to increased exploration and production activities and demand for high-performance drilling platforms.

How the Demand for Natural Gas and Oil is Driving the Growth of the Offshore Drilling Rigs Market?

The offshore drilling rig market’s rising demand for natural gas and oil is driving the CAGR. The increasing use of natural gas as a fuel over the last decade is resulting in a rise in global natural gas consumption. The increase in well intervention and drilling activities in the oil and gas industry is propelling the expansion of the offshore drilling market. Offshore drilling activities is increasing significantly as a result of advancements in search and development technologies, enhanced environmental management increased efficiency, and a better understanding of the marine environment.

The demand for natural gas is likely to expand in the coming years due to increased fuel use in developing countries such as China and India. Natural gas use will increase by 45 percent by 2040, creating opportunities for expansion in the power sector. Onshore wells have lower reserves than offshore wells. These vast deposits will be utilized and produced by the upstream companies.

As a result, demand for oil and gas will rise prompting additional offshore drilling. The global need for fossil fuels is rapidly increasing, and top firms are primarily engaged in hydrocarbon exploration to meet this demand. The corporations are prioritizing increased offshore drilling to discover oil and gas using well-developed technology beneath the water, as the majority of probable hydrocarbons are found there.

According to offshore oil and natural gas leasing and development activity mainly occur in the central and western Gulf of Mexico, where thousands of platforms operate in waters up to 6,000 feet deep. A few platforms operate at depths of 10,000 feet or greater. In 2021, offshore oil and natural gas production in the Federal Gulf of Mexico amounted to around 15% of total US crude oil production and 2% of total US dry natural gas production.

What are the Factors that are Influencing the Offshore Drilling Rigs Market?

The Offshore Drilling rigs market is heavily influenced by rising crude oil prices. These price changes have a significant impact on the profitability and operational efficiency of upstream oil and gas companies. Given the unpredictability of import costs upstream oil and gas businesses have postponed exploration and production (E&P) efforts. The current crude oil production projects, which operate under low-price scenarios have produced less revenue, providing hurdles for enterprises seeking to preserve their market share.

The COVID-19 epidemic amplified these oscillations as evidenced by the unusual collapse of US oil prices into negative territory. This unique incident highlighted the pandemic’s significant impact on the worldwide economy and by implication, the Offshore Drilling Rigs Market.

Furthermore, the completion of exploration and production (E&P) projects is dependent on meeting profitability targets, making the current volatility in crude oil prices a substantial impediment. As a result, investor trust in supporting (E&P) initiatives suffers, restricting the Offshore Drilling Rigs Market’s growth.

Furthermore, the completion of E&P projects is dependent on meeting profitability standards making the current volatility in crude oil prices a substantial hurdle. As a result, investor trust in supporting E&P initiatives suffers, restricting the Offshore Drilling Rigs Market’s expansion.

Category-Wise Acumens

How will Skyrocketing Demand for Jack-up Rigs Favor Offshore Drilling Rigs?

The offshore drilling rigs market is likely to grow significantly, with the jack-up rigs category accounting for a sizable 36% share throughout the forecast period. This increase is mostly driven by rising demand for jack-up rigs, particularly in the Middle East. According to top jack-up fleet owners’ forecasts, global demand for modern jack-up fleets is expected to increase significantly in the next quarters, reaching approximately 95%.

Furthermore, jack-up drilling rigs, known for their capacity to withstand harsh circumstances and moderate water depths, are selected for oilfield services in these projects. The growth of offshore development projects around the world contributes to this trend.

As a result, their use is critical for continuous offshore operations, propelling the offshore drilling rigs market forward.

How does the Ultra-Deepwater and Deepwater Segment Fare for the Offshore Drilling Rigs Market?

The offshore drilling rigs market is predicted to increase significantly in the deepwater and ultra-deepwater segments, with a sizeable 53% share by the end of 2036. This boom has been fueled by the finding of massive untapped oil and gas deposits in deepwater and ultra-deepwater regions. With onshore and shallow-water assets dwindling, oil and gas companies are shifting their focus to extracting hydrocarbon resources from these tough regions.

The increased exploration and production operations in deepwater and ultra-deepwater locations have created a greater need for drilling rigs designed to operate in such harsh conditions. To protect future energy supply, governments and energy companies are making significant investments in offshore exploration and production. The Gulf of Mexico, Brazil’s pre-salt reserves, West Africa, and the Asia-Pacific area are all experiencing active exploration and development in deepwater and ultra-deepwater territories.

The offshore drilling rigs market spike in demand highlights the critical significance that investments in offshore exploration and production play in driving. The rising emphasis on exploring these resource-rich areas has spurred the need for deepwater and ultra-deepwater drilling rigs.

Gain Access into Offshore Drilling Rings Market Report Methodology

Will the Offshore Drilling Rigs Market Flourish in North America?

The offshore drilling rigs market has a foreseeable future in this region, thus accounting for a major share, approximately  35%. This upward trend is supported by the increasing amount of oil reserves in the region, which boosts demand for drilling rigs for oil extraction and maintenance activities. Notably, offshore oil and gas reserves have been discovered in both the United States and Canada, fueling the growing demand for drilling rigs.

According to studies, Canada has significant oil reserves, with the oil sands deposits accounting for roughly 75% of total reserves. Additionally, the United States has one of the world’s greatest oil shale reserves. The richness of energy resources in these areas has resulted in increased investment by both governmental and private companies in offshore drilling activities targeted at increasing oil output.

The ongoing search of these abundant energy sources highlights offshore drilling’s critical role in increasing North American oil production. As a result, the region’s strong position in the offshore drilling rig market is expected to continue, powered by continuous exploration and extraction efforts aimed at tapping its massive oil reserves.

How the Asia-Pacific Region is Poised to Claim a Notable Share in Offshore Drilling Rings Market?

The offshore drilling rigs market is expected to be responsible for a significant 27% during the forecast period for the Asia Pacific region. This expected growth is driven by Asia Pacific countries increasing offshore exploration and production (E&P) efforts. These measures are largely intended to increase domestic energy output and reduce reliance on international oil and gas imports.

The Asia-Pacific area, which is characterized by fast emerging countries, has experienced unprecedented economic expansion during the last decade. This economic progress has coincided with a large increase in energy consumption, resulting in a greater reliance on imported oil and gas resources. To reduce this dependency and assure energy security, governments in the region are increasing their investments in offshore exploration and production.

The rising focus on offshore E&P efforts in the Asia-Pacific region is expected to accelerate the growth of the offshore drilling rigs market. As governments and energy firms increase their attempts to tap into offshore energy reserves, demand for drilling rigs is projected to rise significantly. This trend highlights Asia Pacific’s critical role in driving the growth and expansion of the offshore drilling industry, demonstrating the region’s strategic relevance in the global energy landscape.

Competitive Landscape

The offshore drilling rigs market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support.

The organizations are focusing on innovating their product line to serve the vast population in diverse regions. Some of the prominent players operating in the battery separator market include

• Equinor
• Shell PLC
• Schlumberger Limited
• Saipem
• KCA Deutag
• Nobel Corporation
• Pacific Drilling
• Seadrill
• Halliburton
• Weatherford International Inc.
• Aban Offshore Limited
• China Oilfield Services Ltd.
• Hercules Offshore, Inc.
• Atwood Oceanics
• Ensco PLC
• Diamond Offshore Drilling, Inc.
• Nabors Industries Ltd.
• Maersk Drilling

Latest Developments

• In June 2023, Var Energi, a Norwegian offshore oil and gas producer, formed a long-term strategic partnership with Halliburton, a US oilfield services provider, to enhance drilling and well performance and create value. The cooperation involves drilling services for Var Energi for exploration and production drilling on the Norwegian Continental Shelf. The deal is for five years, with the option for an additional four years.
• In June 2023, Vestigo Petroleum awarded a contract to Malaysian offshore drilling company Velesto Drilling for a jack-up drilling rig. The deal is for Velesto’s jack-up drilling rig NAGA 2, which is worth an estimated USD 10.9 million. The NAGA 2 is a modern independent-eg cantilever jack-up rig with a drilling depth of 30,000 feet (9144 meters) and an operational water depth of 350 feet (106.68 meters).
• In January 2022, Equinor plans to use the Transocean Enabler semi-submersible drilling unit to drill a carbon injection well and a side-track for an existing well, with backing from the Northern Lights Carbon Capture Storage Project.
• In January 2022, Shell PLC announced a large oil and gas discovery in an offshore well in Namibia. The drilling for the Graff-1 well began in December 2021, and resources are projected to be 250-300 million barrels of oil and gas equivalent. The graff-1 will generate considerable foreign investment in this region.

Report Scope

Offshore Drilling Rigs Market, By Category

Type

• Jack-up Rigs
• Semi-Submersible Rigs
• Drill ships
• Bottom Supported Rigs
• Floater Rigs

Water Depth

• Shallow water
• Deepwater
• Ultra-Deep water

Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Research Methodology of Market Research

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• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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