Gulf of Mexico - ‚Ñ¢s Deep Water and Ultra Deep Water Exploration & Production (E&P) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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The Gulf of Mexico’s Deep water and Ultra deep Water Exploration & Production (E&P) Market is growing at XX% CAGR and is expected to reach USD XXX by 2020 from USD XXX in 2015. 

Growing populations and rapid urbanization around the world has resulted in a growing demand for energy. Oil and gas are the most common fuels in use today, and their demand is rising day by day. This has pushed petroleum companies to intensify their deep water and ultra-deep water offshore activities in order to meet demand and maintain profits. With the fall in oil prices in 2015, resulting in the concerns about the viability of large ultra-deep water projects. Capital Expenditure (CAPEX) and Operational Expenditure (OPEX) are on the rise with fall in oil prices, which is increasing the pressure on the budgets and has become more challenging in the short term. But, with the increase in the demand for Oil & Gas production, the Exploration and Production operators are considering long term plans and delaying the projects rather than cancelling them. There by the growth for deep water and ultra-deep water is on the rise. The growth in the Gulf of Mexico is primarily driving the global deep water drilling Innovation.

The federal Gulf of Mexico is one of the fastest growing offshore market with a yet to be discovered potential of about 48 Billion barrels of Oil.  The water depth has trended deeper and deeper and has reached a record point, with Shell’s Gulf of Mexico ultra-deep water Stones project at a depth of 9500 feet and the production is expected to start in 2016.

It is expected that the rig count in the Gulf of Mexico will increase in the coming years with the substantial investments pouring into the offshore Deep Water and Ultra Deep Water projects by major players like ExxonMobil, Chevron, Royal Dutch Shell, BP and Others.

The Exploration and Production (E&P) operators spending is in seismic, drilling, subsea and FPS Submarkets, which is expected to have a promising growth during the forecast period. The Drilling and Completion will represent the largest segment for the deep water market expenditure, where the majority will be spent on the subsea well completions. Floating production systems (FPSs) account for the second largest segment with majority of investments in floating Production, Storage and offloading vessels and the subsea equipment (subsea production hardware and umbilical’s, risers, and flow lines) account for the third largest segment in terms of capital expenditure, which can be estimated on the number of wells drilled.

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