Deepwater Hydrocarbons Exploration Market Size, Share, Trends, Growth 2030

Deepwater Hydrocarbons Exploration Industry Perspective:

The global deepwater hydrocarbon exploration market size was valued at USD 4.19 billion in 2022 and is anticipated to reach USD 9.83 billion between 2023- 2030. The market is expected to grow with a CAGR of 11.39% during the forecast period.

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The global hydrocarbon exploration market report offers a holistic evaluation of the market. Furthermore, the hydrocarbon exploration industry report provides a comprehensive analysis of market drivers, restraints, and the competitive landscape expected to play a substantial role in the market.

Deepwater Hydrocarbons Exploration Market: Overview

Deepwater exploration drilling refers to the process of extracting oil and gas under the earth's surface via seabed. The oil platforms are well set into water bodies which store and extract huge amounts of natural gas & oil before it is brought to the shore for refining. This process is beneficial for figuring out the inaccessible oil and gas reserves. These resources are found via drilling on ship-based rigs and land rigs positioned with the help of dynamic positioning methods.

Key Insights

• As per the analysis shared by our research analyst, the global deepwater hydrocarbons exploration market size is estimated to grow annually at a CAGR of around 11.39% over the forecast period (2023-2030).
• In terms of revenue, the global deepwater hydrocarbons exploration market size was valued at around  USD 4.19 billion in 2022 and is projected to reach USD 9.83 billion by 2030.
• The high demand for automated drilling rigs is likely to boost the global hydrocarbon exploration market growth.
• Based on the service, the deepwater exploration segment accounts for the largest share of the global deepwater hydrocarbon exploration market.
• Based on the water depth, the deepwater segment dominates the global deepwater hydrocarbon exploration market.
• Based on drilling rigs, the spar platforms segment holds the largest share of the global market.
• Based on type, the drilling system is the fastest-growing segment of the global market.
• Based on region, North America is expected to dominate the market during the forecast period.  

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Deepwater Hydrocarbons Exploration Market: Growth Drivers

High demand for automated drilling rigs is likely to propel the growth of the global market.

Industrial automation has revolutionized corporate operations in all end-user industries. The gas and oil sector is likely to see a significant spike in automated drilling. The wide-ranging automated technology and industrial control systems like HMI, SCADA, PLC, and DCS play an essential role in advancing manufacturing processes and enhancing dependability by lowering human error. Also, robotic drilling machines and computer-controlled operations have helped to enhance worker security and safety in the drilling sector. Various government agencies like ISO are increasing interest in developing record management in the energy sector. Such a landscape is expected to boost the growth of the global deepwater hydrocarbon exploration market. Increasing research and development activities are further expected to propel the growth of the global market.

Deepwater Hydrocarbons Exploration Market: Restraints

Side effects of deepwater hydrocarbon exploration are expected to hamper the growth of the global market.

The HSE rules and strict environmental regulations associated with exploration and drilling activities are likely to hamper the growth of the global deepwater hydrocarbons exploration industry. Additionally, the rising demand for renewable, sustainable energy sources is further expected to slow down the growth trajectory of the global market.

Deepwater Hydrocarbons Exploration Market: Opportunities

Growing investments is likely to open lucrative growth opportunities in the global market.

The constantly rising investments in the field of drilling and exploration are one of the major factors offering lucrative growth opportunities in the global deepwater hydrocarbon exploration market. Around $15 billion is being invested by the petroleum sector for the term period of 2021-2030. Also, tech developments are further expected to widen the scope of the global market in the forthcoming years.

Deepwater Hydrocarbons Exploration Market: Challenges

Shipping delays and shortages of materials are a big challenge in the global market.

Significant shipping delays due to the market scenario, along with a shortage of raw materials, are a major challenge in the global deepwater hydrocarbons exploration industry. Distributor mapping sometimes delays the shipping due to regional market obstructions. However, there are a number of strategies adopted by market leaders to overcome these challenges in the forthcoming years.

Deepwater Hydrocarbons Exploration Market: Segmentation

The global hydrocarbon exploration market can be segmented into service, water depth, drilling rigs, type, and region.

On the basis of service, the market can be segmented into drilling, deepwater hydrocarbon production, and deepwater exploration. The deepwater exploration segment accounts for the largest share of the global market. It refers to searching for resources and acquiring them from the deep waters. According to the ISO, deep water is said to be between 200-2000 meters below sea level. The deep water exploration includes the myriad processes associated with the extraction of oil from marine wells at depths. However, deepwater exploration and deepwater hydrocarbon production are both very important for exploring new oil fields. The deepwater hydrocarbon production segment is expected to grow steadily in the coming years, owing to its high importance in the process of deepwater exploration. Deep water hydrocarbon production is the process of producing gas and oil from found reservoirs in the ocean. The depth considered for production is more than 400 feet, which is drilled with the help of semi-submersible or floating rig platforms associated with the moon pool system. However, it also covers the ultra-deepwater phase of 500 meters. Also, the drilling segment is likely to grow significantly during the forecast period. It is the process of making a borewell with the help of some equipment to pass through strata into the gasses, minerals, and fluids. Drilling is highly utilized for various purposes like mineral exploration, geothermal energy production, groundwater extraction, etc. However, the very first step in hydrocarbon production is drilling a borewell to release the gasses or crude oil from beneath the seabed.

On the basis of water depth, the market can be segmented into ultra-deep water and deep water. The deepwater segment dominates the global deepwater hydrocarbon exploration industry due to the discovery of new gas & oil fields in potential regions. Also, the tech developments are further promoting the growth of the segment.

On the basis of drilling rigs, the market can be segmented into complaint tower rigs, spar platforms, jack-up rigs, fixed platform rigs, and subsea systems. The spar platforms segment holds the largest share of the global market. These spar platforms are majorly utilized in gas and oil extraction, particularly offshore ones. It is known to be a rigid frame structure for the support of pipelines, manifolds, wellheads, drilling rigs, etc. The platform is of high importance for deepwater hydrocarbon exploration by laying a subsea system that consists of umbilical and flow lines on the seafloor with pigging units, valves, etc. These platforms are known to offer the best goods and manpower transfers to the offshore sites via various facilities like helicopter or helipads during the emergency landings. However, the subsea segment is also likely to grow steadily during the forecast periods due to the fact that deepwater exploration happens in subsea systems. The process includes the recovery of reserves and the discovery of new ones. The process offers precise flow readings.

On the basis of type, the hydrocarbon exploration industry is divided into floating operating system, drilling system, and seismic submarket. The drilling system is the fastest-growing segment of the global market.

Recent Developments:

• CNOOC Limited initiated the work on Lingshui 17-2 gas field in July 2021. This gas field is positioned in the Qiongdongnan Basin in the Northern Sea and is said to have a water depth of around 1,560 meters.
• TotalEnergies commenced exploration on the ultra-deepwater Venus-1X well, which is an offshore site in Namibia. The process is being processed through a Maersk Drilling-owned drillship.

Deepwater Hydrocarbons Exploration Market: Report Scope

Deepwater Hydrocarbons Exploration Market: Regional Analysis

North America to capture substantial market share during the forecast period

North America accounts for the largest share of the global deepwater hydrocarbons exploration market during the forecast period because most of the deepwater exploration activities happen to be in the Gulf of Mexico and the North Sea area. The constantly increasing natural gas and oil production in the region is also likely to promote the growth of the regional market during the forecast period.

However, the Middle East and African regions are expected to witness significant growth in the forthcoming years due to the growing gas and oil production activities. There are increasing offshore projects to produce oil with ultra-deep and deep water exploration. However, the Angolan offshore is the most looked forward region drawing huge investments owing to the positive drilling results. Additionally, the discovery of several high-impact drilling sites is further making it the most prominent region in the global deepwater hydrocarbons exploration industry. Most of the leading industry players, like Total, Statoil, Mobil, Exxon, Eni, Chevron, etc., are involved in drilling activities in the region. Also, Nigeria is characterized among the top ten countries offering deepwater condensate reserves along with huge remaining crude oil reserves.

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Asia Pacific is also expected to witness huge growth in the coming years due to the rising demand for gas and oil exports. Also, the increasing investments are likely to drive exploration activities during the forecast period. The recent government policies favoring the growth of the market are likely to promote exploration activities in the region. Also, the region is experiencing high demands for conventional hydrocarbons, including natural gas and crude oil, which in turn is further likely to promote the growth of the regional market. The increasing research and development activities owing to the high demand for advanced tech to boost and simplify the process will also positively impact the growth trajectory of the regional market during the forecast period.

Deepwater Hydrocarbons Exploration Market: Competitive Analysis

The key players in the global deepwater hydrocarbons exploration market include:

• Brazilian Petroleum Corporation
• Trico Marine Services Inc
• Petrobras
• Transocean Ltd
• Oceaneering International Inc.
• Schlumberger Ltd
• Petroliam Nasional Berhad
• SeaBird Exploration
• CNOOC Limited
• Subsea 7S.A.
• Shell plc
• SBM Offshore
• PGS
• Aker Solutions
• Shelf Drilling Ltd
• Nabors Industries Ltd.
• Sapura Energy Berhad
• Saipem SpA
• Valaris Limited
• Noble Corporation
• Seadrill Limited
• Transocean Ltd.
• Oceaneering International Inc

The global deepwater hydrocarbons exploration market is segmented as follows:

By Service

• Drilling
• Deepwater Hydrocarbon Production
• Deepwater Exploration

By Water Depth

• Ultra-Deep Water
• Deep Water

By Drilling Rigs

• Complaint Tower Rigs
• Spar Platforms
• Jack-Up Rigs
• Fixed Platform Rigs
• Subsea Systems

By Type

• Floating Operating System
• Drilling System
• Seismic Submarket

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa