The market is segmented by Equipment (Drilling Rigs, Completion and Workover Rigs, Drilling Equipment, Logging Equipment, and Other Equipment)
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Scope of the Report
Key Market Trends
TABLE OF CONTENTS
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The Norway oilfield equipment rental services market is expected to grow at a CAGR of over 3% during the forecast period of 2020 – 2025. Factors such as increasing exploration and production activities due to rising crude oil and natural gas demand are likely to drive the Norway oil field equipment rental services market during the forecast period. However, volatile oil and gas prices are leading to the uncertainty among oil and gas operators, which is likely to restrain the growth of the European oilfield equipment rental services market in the coming years.
The drilling rigs segment is likely to dominate the market during the forecast period due to the increasing exploration and production activities.
Advancements in the deepwater and ultra-deepwater drilling activities in the region like Norway, United Kingdom is expected to create an ample opportunity for the market players in the coming years.
The upstream sector is expected to drive the Norway oil and gas industry, owing to increased investment by oil companies. Moreover, discoveries are likely to propel the market during the forecast period.
Scope of the Report
The Norway oilfield equipment rental services market:
Completion and Workover Rigs
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Key Market Trends
Drilling Rigs to Dominate the Market
After the oil price crisis in 2014, during 2014-16, the rig count, both onshore and offshore, declined significantly. But the period of 2017-2018 was characterized by the recovery in the oil price, resulting in significant recovery in onshore rig count. The offshore activity generally has longer lead times. Also, given the volatility in oil prices, combined with high CAPEX requirements for offshore projects, the offshore drilling activity did not recover until 2019.
The offshore operators have committed to significant investments in field developments. As of 2018, Norway was a leader in the offshore drilling market in terms of a number of planned and under-pipeline projects in Europe.
Amid the reducing reserves in the North Sea, drilling activity is on ever high given the attempts to find more oil and gas in deeper waters. Norway is increasing their drilling activity every year in search of more oil and gas thus acting as a major driver for this market.
As the crude oil prices are increasing, investment in oil & gas industry is expected to grow significantly and bring several projects online, thereby, driving the Norway oil field equipment rental services market.
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Upstream Sector to Drive the Market
Norway is expected to maintain its dominance in the European region in the forecast period, the increased pressure on oil & gas companies to do more in limited money and become more cost-efficient has been driving the market.
Norway’s oil and gas industry is now back on its feet. Oil companies have increased their spending for the first time in 2018, since 2014. As of 31 December 2018, there were 85 discoveries where the licensees have yet to submit a PDO to the government. The total investment required to develop the whole portfolio is estimated to be in the order of NOK 400 billion in 2018 value.
In 2019, Norway drilled more well than ever, around 130 wells, out of which 55 were for exploratory drilling in a bid to find new oil & gas fields to compensate the country’s declining oil & gas production. Drilled wells numbers saw a rise of 16% compared to 2018.
The new market conditions forced the industry to cut costs and improve operational efficiency, which, in turn, made several unprofitable projects feasible. This trend is expected to increase the demand for oilfield equipment rental services in the country.
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The Norway oilfield equipment rental services market is partially fragmented with a number of small and big players in the market. Some of key players in this market include Transocean Ltd, Seadrill Ltd, Schlumberger Limited, Baker Hughes Company, and Weatherford International PLC.