Market Trends of United States Offshore Support Vessels Industry
This section covers the major market trends shaping the US Offshore Support Vessels Market according to our research experts:
Platform Supply Vessels (PSVs) Segment to Dominate the Market
- Platform Supply Vessels (PSVs) are the offshore vessels used for transferring equipment, crew, and other goods to the offshore drilling platform. In 2014, after falling in oil prices, offshore support vessels market slowed down, but as the oil prices began to rise, the offshore support vessel market also gained its pace.
- In December 2019, Total S.A announced to start front end engineering design (FEED) for its North Platte oil field, which is in offshore Louisiana. This project in the future will require several heavy equipment and crew that can be delivered to the site by platform supply vessels (PSVs). It is likely to create a number of opportunities for the United States offshore support vessels market industry during the forecast period.
- In 2019, Chevron Corporation and Total S.A completed the exploration phase in the Ballymore oil field in the Gulf of Mexico and encountered oil, later the same year appraisal phase was started. The project is expected to be in its development phase by the end of 2020 or in the first quarter of 2021, which includes drilling of wells. This project contains several offshore activities and will require heavy equipment that can be transferred by platform supply vessels (PSVs).
- Therefore, owing to the above points, platform supply vessels (PSVs) is expected to dominate the United States offshore support vessels market.
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Increasing Deep Water Activities Expected to Drive the Market
- Deep-Water activities in the Gulf of Mexico has driven the United States offshore support vessels market and is likely to drive the market during the forecast period. In 2018, 16% of the oil and gas of the United States come from offshore activities mostly from deep-water, thus making deep-water activities likely to drive the United States offshore support vessels market during the forecast period.
- In 2018, Royal Dutch Shell completed phase 1 and started production from its deep-water field, Kaikias, in the Gulf of Mexico. In phase 1, it drilled three wells that were completed in 2018, and phase 2 is expected to start by 2020 or 2021. These developments in the area are expected to have a positive impact on market growth.
- In 2018, Royal Dutch Shell announced the final investment decision on the Vito Project in the Gulf of Mexico. It is expected to reach the production of 100,000 barrel of oil equivalent (boe) per day and is expected to be completed by 2021.
- In December 2019, Chevron Corporation announced to develop the Anchor Project in the Gulf of Mexico, which will be the first deep-water and high-pressure project of the oil and gas industry. This project is expected to require advance drilling technologies.
- Hence, owing to the above points, deep-water activities are expected to drive the United States offshore support vessels market industry during the forecast period.
