The Market is Segmented by Product Type (Oil and Gas) and Geography (North America, Asia-Pacific, Europe, South America, and Middle-East and Africa)
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Scope of the Report
Key Market Trends
TABLE OF CONTENTS
2016 - 2026
Fastest Growing Market:
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The offshore pipeline market is expected to register a CAGR of over 6% during the forecast period of 2020-2025. The offshore rig count registered a growth rate of 6.89% during the period of October 2018 to 2019. A wide network of thousands of miles of pipelines dramatically speeds up the process of oil transportation (making it cheaper, in the long run, to move products across the world) and provides a safe and efficient solution for the transportation of numerous hydrocarbon products. On the flip side, technical challenges, like construction and deep-water challenges, are expected to restrain the market.
Among the oil and gas pipeline, the gas pipeline is expected to increase the demand for the offshore pipeline market in the regions, like North America, where most of the discoveries are of shale gas. Hence, this is expected to increase the demand for gas pipelines.
Most of the countries in the world require a high amount of energy (oil & gas) consumption while the production of oil and gas in such countries is negligible, such as the United Kingdom, Germany, and France, which is estimated to create huge opportunity in the global offshore pipeline market during the forecast period.
North America, led by the United States and Canada, dominated the offshore pipeline market across the world.
Scope of the Report
The offshore pipeline market report includes:
Middle-East and Africa
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Key Market Trends
Deepwater and Ultra-Deepwater Segment to Witness a Significant Growth
Due to the increasing population and dependency on fossil fuels and, in particular, oil and gas, pushed the demand for cheap transportation of oil and gas to the market.
Owing to the oil price volatility starting mid-2014, the oil and gas operators across the world undertook several cost-cutting and went under decommissioning, which resulted as the hindrance for exploration and production projects and new investment. Furthermore, with the improvement in oil prices from 2017, several deepwater and ultra-deepwater projects have become viable to operate and resulted in increased investment for exploration and production activities, especially in deepwater areas. Moreover, the breakeven for deepwater exploration and production has fallen since 2014 and is expected to follow the same trend during the forecast period.
Moreover, the recent waves of cost reductions and critical technological breakthroughs enabled many oil and gas exploration and production companies to expand their portfolio of sustainable deepwater and ultra-deepwater developments. As a result, the offshore pipeline market is expected to witness significant growth in the near future.
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North America to Dominate the Market
The North American region is expected to dominate the global market share for the offshore pipeline market during the forecast period. The countries are trying to invest more in new technology, which will result in more exploration activities as in offshore, technology plays a vital role. During the forecast period, oil and gas pipeline infrastructure in the United States and Canada is expected to continue running on full capacities.
With the increasing activities in the Gulf of Mexico, the United States is expected to witness significant growth in the offshore pipeline market. The upcoming 18 new projects of gas production are believed to hold a combined 836 billion cubic feet of natural gas reserves.
Recently, Chevron announced that the company started production on its Big Foot deepwater project, located about 225 miles south of New Orleans, the platform was designed to produce up to 75,000 barrels of oil and 25 million cubic feet of natural gas per day.
Moreover, the Canadian pipeline industry is expected to experience stable and robust growth over the next several years, due to the technological advancements. Also, the Canadian oil and gas sector may record high levels of production, with the pipelines considered as the safest and most reliable cost-effective way to meet the energy requirement for high-value end-user markets.
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The global offshore pipeline market is fragmented. The major companies include Saipem SpA, L&T Hydrocarbon Engineering, China Petroleum Pipeline Engineering Co. Ltd, Genesis Energy LP, and Embridge Inc., among others.