DUBLIN--(BUSINESS WIRE)--Aug 1, 2022--
The "Global FPSO Market Forecast to 2028 - COVID-19 Impact and Global Analysis by Water Depth, Hull, Mooring, and Construction" report has been added to ResearchAndMarkets.com's offering.
The FPSO market was valued at US$ 11,911.53 million in 2021 and is expected to reach US$ 21,833.07 million by 2028; it is estimated to grow at a CAGR of 8.0% from 2021 to 2028.
As industrial growth and advancement have led to an increased demand for reliable power, there is a growing need for alternative oil sources. This element has a beneficial impact on the global FPSO market size. The market is being stimulated by an expansion in offshore operations such as deep waters and ultra-deep seas due to increased investments in this area.
Furthermore, the rising oil & gas consumption is predicted to encourage the development of oil & gas fields. As a result, the global FPSO market is expected to grow. A rise in the development of marginal oil reserves in remote offshore areas is anticipated to fuel the market growth. For example, in 2018, an oil field with an estimated reserve of 170 million barrels of oil was discovered on newly developed Australia's Northwestern Shelf. Thus, the reasons mentioned above are further fueling the FPSO market growth.
Further, the International Energy Agency (IEA) estimates that annual capital investment in Brazil's offshore oil & gas production activities will reach US$ 60 billion by 2040. The potential of FPSO units to operate without the help of a fixed structure will fuel market growth. Furthermore, the capacity of these units to be redeployed to a different oil field after one is exhausted and their resistance to adverse weather conditions would accelerate their deployment.
Moreover, the depletion of onshore oil deposits and the high costs of developing infrastructure will promote the deployment of FPSO units as an alternative. The capacity of these units to reduce the cost of oil & gas procurement will expedite their deployment in the future, thereby driving the FPSO market.
Moreover, the increasing strategic initiatives by the major market players are driving the FPSO market. For instance, in May 2019, the Oil and Natural Gas Corporation awarded Bumi Armada a contract for the west coast of Kakinada through its joint venture business Shapoorji Pallonji Bumi Armada Godavari.
Under this agreement, Bumi Armada will supply and operate FPSO vessels for nine years. In addition, offshore oil & gas exploration and production have increased significantly. Further, the discoveries of new oil & gas reserves are growing exponentially across the globe.
According to Rystad Energy, in 2019, 12.2 billion barrels of oil equivalent were discovered across the world. In 2019, there were 26 recorded discoveries with over 100 barrels of oil equivalent, with offshore regions leading the new oil & gas deposits. Also, two new oil & gas fields were discovered by Saudi Aramco in the northern parts of Saudi Arabia in August 2020.
In September 2020, Equinor announced the discovery of new oil & gas fields at the swisher prospect. The company also announced the discovery of two oil fields in the Flemish Pass basin offshore Newfoundland. Thus, the reasons mentioned above are further boosting the FPSO market growth.
Several countries witnessed a significant negative impact of COVID-19 on their demand for overall oil & gas. Hence, the FPSO market witnessed a substantial decline during the early months of 2020. The lockdown negatively impacted the FPSO market in Europe due to disruption in the oil & gas sector across the region.
However, several countries in the area are beginning to reopen industry vertical and increase the energy demand, which is expected to resume the construction of oil & gas activities to support the market's growth.
For instance, in 2022, Norway's Johan Castberg field development project has resumed, which consists of three oil discoveries - Skrugard, Havis, and Drive, and it is expected to continue till 2046. Thus, the FPSO market is expected to recover steadily in the coming years and gain traction during the later forecast period.
Moreover, the resumption of economic activities is creating a positive impact on the market. Thus, the global market is projected to recover the lack of demand during the coming months and the subsequent years. However, in the post-COVID scenario, the resumption of oil extraction projects is driving the FPSO market.
Based on hull, the market is segmented into single hull and double hull. In 2021, the double hull segment led the market and accounted for a larger market share. Based on mooring, the FPSO market is segmented into spread mooring and disconnectable mooring.
In 2021, the disconnectable mooring segment led the market and accounted for a larger market share. Based on construction, the FPSO market is segmented newly built and converted. In 2021, the newly built segment led the market and held a larger market share.
Key Industry Dynamics
- Increasing Oil and Gas Production in Deep and Ultra-Deepwater
- Rising Number of Offshore Exploration and Production Activities
- Challenges Faced in FPSO Implementation
- Surging Demand for Natural Gas and Crude Oil
- Growing Advancements in Subsea Technologies
- MODEC, Inc.
- Bumi Armada Berhad
- SBM Offshore
- CNOOC Limited
- Total Energies
- EXXON MOBIL CORPORATION
- BW Offshore
- Equinor ASA
- Shell plc
For more information about this report visit https://www.researchandmarkets.com/r/719diy
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INDUSTRY KEYWORD: OIL/GAS ENERGY
SOURCE: Research and Markets
Copyright Business Wire 2022.
PUB: 08/01/2022 04:48 AM/DISC: 08/01/2022 04:48 AM