There is huge demand for the deepwater hydrocarbon exploration market from the emerging economies of Asia Pacific and Latin America. This is due to rising demand for conventional hydrocarbons in these regions. Over 11% of global oil and gas reserves exist underwater.
The fundamental factors driving the deepwater hydrocarbon exploration market are advancements in technology, decreasing drilling costs owing to competition and augmented key players for deepwater hydrocarbon exploration. However, factors restraining the market are accentuation in HSE (health and safety executive) regulations for gas and oil exploration and rising demand for renewable energy sources.
The deepwater hydrocarbon exploration market can be categorized into deepwater drilling, deepwater exploration, depth of exploration, deepwater production and drilling platform. On the basis of depth of exploration, the market can be segregated into ultra deep water and deepwater. The deepwater hydrocarbon exploration market is also fragmented on the basis of drilling platform into compliant tower rigs, fixed platform rigs, subsea systems, spar platforms and jack-up rigs.
Geographically, the deepwater hydrocarbon exploration market is segmented into four major regions, including North America, Europe, Asia Pacific and ROW (rest of the world). North America captured the largest share owing to its extensive deep sea activities in the past. Offshore activities in Brazil are predicted to drive the market in this region.
Asia Pacific and European regions have shown significant expansion and are projected grow steadily over the coming years. The emerging markets of China and India are expected to lead the deepwater hydrocarbon exploration market. This is on account of advancements in technology and emerging key players in these regions. The Middle Eastern region has deep sea reserves and great expansion prospects in the years to come.