NEW YORK, May 5, 2015 /PRNewswire/ — Scope
The offshore oil and gas (O&G) services market is witnessing uncertainty amid the global slump in crude oil price that started in H2, 2014 affecting economies and several industries. Major international and national oil companies have resorted to controlling their capital investments and laying off employees to reduce expenses. The highest level of uncertainty exists in the United States and other high-cost offshore drilling areas. This study evaluates the current state of the offshore O&G services market and focuses on the major industry verticals such as drilling support services, marine support vessels services, and pipeline services. It covers the field projects in the selected market segments and includes fleet sizes segregated by rig and vessel type.
The global offshore oil and gas (O&G) services market was valued at $xx billion in 2014. The market sizing is based on analysis of three main industry verticals: drilling support services, marine support services, and pipeline support services.
– The ongoing slump in oil price is impacting the market immensely—major participants have resorted to reducing capital investment and laying off employees to lower expenses. The highest uncertainty lies in the United States and other high-cost offshore drilling areas.
– Competition in this market is severe. Strong global companies are able to hold on to their market position because of adequate cash reserves that allow them to cover losses and thrive on low costs, whereas small companies are finding it challenging to survive in the current environment. They were able to make profits mainly because of high oil prices in the past few years.
– The Southeast Asian region relies heavily on offshore activities to fulfill both export and local market demands. Countries such as Malaysia, Indonesia, and Brunei derive huge revenue from O&G exports, whereas nations such as Thailand and Myanmar generate revenue by catering mostly to local market demand.
Executive Summary – Research Scope
This research service provides the trends and developments in three segments of the oil and gas (O&G) offshore services market: drilling support services, marine support vessels services, and pipeline services. The O&G platform services segment has been excluded from the research scope.
– The study summarizes field projects in the selected market segments and includes fleet sizes segregated by rig and vessel type.
– The study profiles the major competitors which have made a regional impact in each market segment.
– The growth rate of global oil demand has been slow during 2014, primarily due to adoption of alternative fuel sources and improvements in consumption efficiency.
– The US shale boom made possible by advancements in drilling methods such as fracking and horizontal drilling is responsible for the disproportionate increase in global oil supply.
– US drillers produced almost as much oil as OPEC leader Saudi Arabia (11 millions of barrels per day (mb/d)) in Q1 2014 to profit from the once high oil prices.
– The economics involved in supply exceeding demand has been bringing oil prices down since June 2014.
– Low oil prices are expected to have a negative impact on the active rig counts and exploration and production spending.
– Oil prices are not expected to reach the $xx/barrel mark in the near future.
– Majority of the abandoned rigs are found in areas that involve high production cost such as the Gulf of Mexico and North Sea.
– As of 2015, rigs that were abandoned were either old or low on efficiency and not newly installed competitive vessels.
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