Depleting shallow water reserves and a lack of new shallow water discoveries means that offshore exploration and production activity in deepwater regions is becoming a new fashion, states a new report by energy experts GBI Research.
The new report states that the search for hydrocarbons in more challenging areas has been on the rise, as advances in drilling technologies have led to the discovery of giant deepwater oil and natural gas fields worldwide, prompting ambitious International Oil Companies (IOCs) and National Oil Companies (NOCs) to drill in remote offshore areas in search of fresh fossil fuel reserves.
Until the early 1990s, offshore exploration and drilling in deepwater areas was considered an economically unattractive option, as it is more expensive, more challenging, and more risky than shallow water offshore drilling. However, with the near-complete exploitation of shallow water and onshore resources, and recent advances in drilling technology, such exploration is now feasible and profitable. Offshore rigs such as advanced semisubmersibles are capable of drilling in water depths exceeding 5,000 feet, and some sixth generation enterprise-class drillships even possess water depth capabilities of up to 12,000 feet. This has led to a significant rise in deepwater and ultra-deepwater Exploration and Production (E&P) activity across the globe, and governments worldwide are promoting the industry in hopes of achieving energy self-reliance.
Deepwater Brazil, offshore West Africa, offshore Angola, offshore Australia, the Krishna Godavari deepwater basin of the eastern coast of India, and the US Gulf of Mexico are all proving to be hotbeds in terms of deepwater offshore drilling activity and expenditure. There have also been deepwater discoveries in various regions of Australia and China. Sub-salt reserves of petroleum, found thousands of meters below layers of sand, rocks and salt, have transformed Brazil into one of the highest potential investment acreages on the globe. Tupi Field is the largest discovery in the Americas since 1970, extending from the State of Espírito Santo to the State of Santa with estimated recoverable reserves of 5-8 billion barrels, and singlehandedly increasing Brazil’s recoverable reserves of crude oil by 50%.
As a result, deepwater activity is expected to grow substantially during the next few years, and is likely to witness aggressive steps by E&P companies. As oil and gas E&P activity moves into deeper water depths, the market for the services of deepwater drilling contractors and offshore rigs operating in deepwater and ultra-deepwater environments will witness strong growth. Offshore day rates for drillships and semisubmersibles are already steadily rising, and this in turn will drive the construction industry for offshore drilling technologies.
The report provides an in-depth coverage of deepwater activity statistics worldwide and also highlights the various concerns, key trends, along with information and data information on deepwater and ultra-deepwater drilling spend in major deepwater regions worldwide.
For more information visit https://www.researchandmarkets.com/research/6xjmgp/deepwater