Deep Water Drilling Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market is segmented by Type (Drill Ship, Semisubmersibles, Tender Rigs, and Others), Depth (Deep water drilling and Ultra deep water drilling), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa)

Market Snapshot

deep-water-drilling-market-industry_Market Summary
Study Period: 2016 - 2026
Base Year: 2021
Fastest Growing Market: Middle-East and Africa
Largest Market: South America
CAGR: 7.8 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

The deepwater drilling market is expected to grow significantly with CAGR more than 7.8% along with the increasing offshore oil and gas exploration activities during the period of 2020-2025. Factors such as rising deepwater oil and gas activity especially in the Gulf of Mexico, Brazil and the North Sea, improved viability of deepwater and ultra-deepwater projects, and tightening supply-demand gaps are expected to drive the market during the forecast period. However, volatile crude oil prices, instability in the oil & gas industry, and higher challenges in developing deepwater prospects, are likely to affect the growth of the deepwater drilling market.


  • The deepwater drilling sector is expected to witness a significant growth rate over the forecast period owing to the upcoming deepwater exploration and production projects in countries such as Brazil, Guyana, Nigeria, and others.
  • Factors, such as technological improvements and increasing viability of deepwater and ultra-deepwater projects, several new markets, such as Gabon, Senegal, Guyana, Trinidad & Tobago, Egypt, and the Mexican side of the Gulf of Mexico are actively promoting the development of deepwater and ultra-deepwater reserves. This, in turn, is expected to create significant opportunities for the operating countries in the near future.
  • South America is going to dominate the market across the globe following with Middle East & Africa with the majority of the demand coming from Nigeria, Angola, and Egypt.

Scope of the Report

The deep water drilling market report include:

Drill Ship
Tender Rigs
Deep Water Drilling
Ultra Deep Water Drilling
North America
South America
Middle-East and Africa

Report scope can be customized per your requirements. Click here.

Key Market Trends

Deepwater Drilling Sector to Dominate the Market Growth

  • The investments related to deepwater projects are expected to be limited, before 2025. These resources are typically more expensive to develop, take a longer time to reach full production, and require additional investment in infrastructure, because of their presence in remote locations. However, most of the projects that are currently under development are expected to continue their operations.
  • Despite high fixed costs and the requirement of long lead times from project conception to the first production, offshore deepwater oil projects provide large production volumes that can achieve relatively low per-barrel operating costs over the reservoir life cycle.
  • The majority of deepwater drilling and production takes place in four countries: Brazil, the United States, Angola, and Norway. In recent years Brazil have become a world leader in the development of deepwater projects. Norway pumped approximately USD 6 billion in the exploration and development of deepwater oil & gas platforms.
  • Moreover, the recent waves of cost reductions and critical technological breakthroughs have enabled many oil and gas exploration and production companies to expand their portfolio of sustainable deepwater developments.
Global Oil Production, 2010-2018

South America to Dominate the Market Growth

  • As the demand for energy is increasing rapidly, various countries and major companies and investors are shifting their interest toward deep water, as it holds the potential for a guaranteed supply of oil & gas for few decades.
  • In 2018, Brazil and the United States together accounted for more than 90% of ultra-deepwater production globally. According to EIA, Brazil is a world leader in the development of deepwater and ultra-deepwater projects. The change in government policy in recent years such as liberalization in the oil & gas sector attracted foreign investment in the country. Moreover, the presence of the most experienced international oil companies in the deepwater development and the largest deepwater reserves makes Brazil the most attractive countries for upstream deepwater investment.
  • Similarly, in the same year, a new exploration permit was awarded in April 2019 to the consortium formed by ExxonMobil and Qatar Petroleum, for exploration in Malvinas Oeste Basin. 13 companies offered approximately USD 995 million for exploration licenses of areas within the Austral, Argentina Norte, and Malvinas Oeste basins. All the three basins are offshore, combining to a total tendered area of more than 200,000 sq. km. never explored before.
  • In 2019, Brazil held its sixth successful oil and gas bid round in just over a year and awarded all four blocks in the prospective pre-salt area for BRL 6.82 billion. The latest investment and upcoming projects in deepwater are likely to drive the growth of the deepwater drilling market during the forecast period in the South America region.
  • Therefore, with rising investments in deepwater and ultra deepwater projects and supporting policies from governments are expected to drive the market in forecast period.
Deep Water Drilling  Market

Competitive Landscape

The deep water drilling market is moderately fragmented due to many companies operating in the industry. The key players in this market include Transocean Ltd., Seadrill Limited, Noble Corporation, Pacific Drilling, Diamond Offshore Drilling Inc.,  and others.

Table of Contents


    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions




    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast, in USD billion, till 2025

    3. 4.3 Deep water Active Drilling Rigs, till 2019

    4. 4.4 Historic and Demand Forecast of Offshore CAPEX in USD billion, by Water Depth, 2018-2025

    5. 4.5 Historic and Demand Forecast of Offshore CAPEX in USD billion, by Regions, 2018-2025

    6. 4.6 Number of Deep Water Drilling Project Approved 2007-2018

    7. 4.7 Number of Floater Rigs and Contracted Rig Years, 2007-2018

    8. 4.8 Share of Under Contract, Future Contract, and Idle/Stacked for Floater Rigs, 2018

    9. 4.9 Major Deep Water Upstream Projects

    10. 4.10 Recent Trends and Developments

    11. 4.11 Government Policies & Regulations

    12. 4.12 Market Dynamics

      1. 4.12.1 Drivers

      2. 4.12.2 Restraints

    13. 4.13 Supply Chain Analysis

    14. 4.14 Porter's Five Forces Analysis

      1. 4.14.1 Bargaining Power of Suppliers

      2. 4.14.2 Bargaining Power of Consumers

      3. 4.14.3 Threat of New Entrants

      4. 4.14.4 Threat of Substitutes Products and Services

      5. 4.14.5 Intensity of Competitive Rivalry


    1. 5.1 Type

      1. 5.1.1 Drill Ship

      2. 5.1.2 Semisubmersibles

      3. 5.1.3 Tender Rigs

      4. 5.1.4 Others

    2. 5.2 Depth

      1. 5.2.1 Deep Water Drilling

      2. 5.2.2 Ultra Deep Water Drilling

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 South America

      5. 5.3.5 Middle-East and Africa


    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Transocean Ltd.

      2. 6.3.2 Seadrill Limited

      3. 6.3.3 Noble Corporation

      4. 6.3.4 Ocean Rig UDW Inc.

      5. 6.3.5 Pacific Drilling SA

      6. 6.3.6 Diamond Offshore Drilling, Inc.

      7. 6.3.7 Saipem S.p.A

      8. 6.3.8 Ensco plc

      9. 6.3.9 SapuraKencana Petroleum Berhad

      10. 6.3.10 China Oilfield Services Limited

      11. 6.3.11 Maersk Group

    4. *List Not Exhaustive

**Subject to Availability

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The Deep Water Drilling Market market is studied from 2016 - 2026.

The Deep Water Drilling Market is growing at a CAGR of 7.8% over the next 5 years.

Middle-East and Africa is growing at the highest CAGR over 2021- 2026.

South America holds highest share in 2020.

Transocean Ltd. , Seadrill Limited , Noble Corporation , Pacific Drilling , Diamond Offshore Drilling Inc are the major companies operating in Deep Water Drilling Market.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!