Abstract
GBI Research, a leading business intelligence provider, has released its
latest research, “Offshore Drilling Industry in the Americas to 2015 -
New Deepwater Discoveries and Stringent Offshore Regulations Affecting the
Future Industry Outlook”. The study, which is an offering from the
company’s Energy Research Group, provides an in-depth analysis of the
offshore drilling market in the Americas and highlights the various concerns,
shifting trends and major players in the region. The report provides forecasts
for the offshore drilling industry in the Americas to 2015. The report also
provides segmental forecasts of the offshore drilling market in the Americas
by water depth and highlights the major countries in the region. The report
provides in-depth analysis of the key trends and challenges in the offshore
drilling market in the region. An analysis of the competitive scenario, data
on the offshore wells and drilling expenditure in the region are also provided
for each of the market segments. The report is built using data and
information sourced from proprietary databases, primary and secondary research
and in-house analysis by GBI Research’s team of industry experts.
Offshore Drilling Expenditure in the Americas is Expected to Continue to
Increase to 2015 After a Dip in the Previous Two Years
The major offshore oil and gas fields in the Americas are the Gulf of Mexico,
off the US coast, the Newfoundland and Nova Scotia oil fields off the Canadian
coastline, the Gulf of Mexico off the Mexican coast, and the Campos and Santos
Basins off the coast of Brazil. The offshore basins of the islands of Trinidad
and Tobago are rich in natural gas reserves. The Carina Aries and Perla oil
field shallow water blocks off the Argentine and Venezuelan coasts,
respectively, are abundant in natural gas reserves.
Other countries in the Americas which have offshore drilling investment
potential are Suriname, the Falkland Islands, Uruguay, Cuba, Peru and Ecuador.
Recent exploration attempts in the search for oil and gas reserves have
indicated the potential oil and gas reserves in these countries.
Hectic shallow water activity off the South and Central American coasts are
expected in the period 2010-15, as a result of previous as well as expected
exploration investments off the coasts of Brazil, Mexico, Trinidad and Tobago,
Venezuela, and newer regions such as Falkland Islands and Suriname.
Growth in Oil And Gas Demand in the Long Term And Increase in Offshore Oil And
Gas Production are Driving the Growth of the Offshore Drilling Industry
The global demand for oil and gas decreased in late 2008 and 2009 due to the
global economic slowdown. However, with the expected recovery of the global
economy led by the emerging economies of India and China, the demand for oil
and gas is likely to recover in 2010. Further, corresponding to the global
economic growth, the demand for oil and gas is also expected to continue to
increase in the future. This will result in a corresponding increase in
production, especially from the offshore regions. With the global crude oil
and natural gas demand not expected to subside and the onshore reserves facing
depletion, the offshore crude oil and natural gas production is only expected
to increase in the future. The offshore oil and gas industry in the Americas
is expected to continue to increase in the future. The offshore crude oil
production in the Americas was 2,441.1 million boe and the offshore natural
gas production in the Americas was 943.7 million boe in 2009.
Offshore Drilling Expenditure, by Water Depth, Americas (US$bn), 2000-15
Source: GBI Research
Offshore Drilling Industry in the US is Expected to be Temporarily Hampered
Due to the New US Offshore Drilling Moratorium
On May 30, 2010, in response to the Deepwater Horizon Oil Spill, popularly
known as the BP oil spill, which occurred in the Gulf of Mexico, the US
Secretary of the Interior, Ken Salazar, issued a moratorium on all deepwater
offshore drilling on the outer continental shelf for a period of six months.
According to the Obama administration, the immediate stalling of offshore
drilling operations was necessary to protect the American environment, and to
"provide time to implement new safety requirements" and allow a new commission
charged with investigating the leak to do its work. Deepwater oil production
in the Gulf was allowed to continue, albeit under closer oversight and with
tighter safety requirements, even as the drilling and instigation of any new
wells was halted.
Categorically mentioning the need to eliminate real or perceived conflicts of
interest in the Minerals Management Service, which oversees offshore drilling,
in May, the US Secretary of the Department of the Interior, Ken Salazar,
announced plans to split the agency into three parts: one to inspect rigs and
enforce safety regulations; a second to oversee the leasing and development of
offshore drilling; and a third to collect royalties from federal onshore and
offshore leases, which average $13 billion a year. The restructuring creates
three new bodies: Ocean Energy Management, which will oversee the licensing of
drilling permits; Safety and Environmental Enforcement; and Natural Resources
Revenue, responsible for the collection of royalties.
A review of offshore policies and regulations with regards to safety,
environmental aspects, and crisis management and revision of offshore policies
and regulations to stricter levels, has already begun in the US. One obvious
change will be the push for stricter and inevitably more costly regulation to
reduce risk and improve safety and damage to fragile environments.
On July 12th, 2010, the Department of the Interior of the Obama-led US
administration issued a new, conditional moratorium on deepwater offshore
drilling, not based on water depth criteria as in the previous moratorium, but
based on stringent safety standards to be followed by offshore exploration
operators, drilling contractors, equipment providers, and oilfield service
companies to ensure safe, accident-free, and environmentally friendly drilling
activity in the future. Apart from new safety regulations, the new moratorium
will allow time to examine the spill response capabilities of exploration
companies to ensure the minimum possible damage to ecology in the vicinity of
the drilling area. New penalty tax laws on oil spills are expected to be
introduced in the wake of the offshore drilling moratorium.
For the offshore drilling sector in the US, this will hamper business because
of government interference and contribute to the global energy scarcity. The
six-month moratorium will also wipe out thousands of jobs and millions of
dollars of income from the offshore drilling business.
Offshore Drilling Industry in the Americas to 2015 - New Deepwater Discoveries
and Stringent Offshore Regulations Affecting the Future Industry Outlook
Summary
GBI Research has released its energy research, “Offshore Drilling
Industry in the Americas to 2015 - New Deepwater Discoveries and Stringent
Offshore Regulations Affecting the Future Industry Outlook”. The study,
which is an offering from the company’s Energy Research Group, provides
an in-depth analysis of the offshore drilling market in the Americas and
highlights the various concerns, shifting trends and major players in the
region. The report provides forecasts for the offshore drilling industry in
the Americas to 2015. The report also provides segmental forecasts of the
offshore drilling market in the Americas by water depth and highlights the
major countries in the region. The report provides in-depth analysis of the
key trends and challenges in the offshore drilling market in the region. An
analysis of the competitive scenario, data on the offshore wells and drilling
expenditure in the region are also provided for each of the market segments.
The report is built using data and information sourced from proprietary
databases, primary and secondary research and in-house analysis by GBI
Research’s team of industry experts.
The Americas is a key region in the global offshore drilling industry. The
exploration and production industry in the Americas has witnessed increased
activity in recent years. There have been discoveries of huge oil reserves in
the region. There has been increased exploration and developmental activity,
especially in the offshore areas of the region. Recent discoveries of huge
reserves, especially off the coasts of the Gulf of Mexico, Brazil and
Venezuela, have increased the attractiveness of the region. Many of the
reserves have been developed in the deep water areas of the region. Venezuela
has emerged as one of the top three countries in the world in terms of proven
crude oil reserves. Consequently, Venezuela leads the South American region
with its huge heavy oil deposits. The expected advances in technology and a
positive future outlook for the crude oil and gas prices will spur increased
activity in exploration and development in the region. However, stringent
regulations in terms of environmental, safety, and operational quality
standards could make offshore drilling a safer activity, albeit at the expense
of higher production costs.
Scope
The report provides in-depth analysis on the major factors affecting the
offshore drilling industry in the Americas. Its scope includes:
- Overview
and analysis of the offshore drilling industry of the Americas
- Analysis
of data from 2000 to 2009 and forecasts to 2015
- Analysis and forecasts
of offshore wells drilled and offshore drilling expenditure
- Provides
country-specific data analysis of the United States (US), Canada, Brazil,
Argentina, Mexico, Venezuela and Trinidad and Tobago
- Analyzes the
opportunities and challenges in the offshore drilling industry of the
Americas
- Analyzes the competitive scenario in the offshore drilling
industry of the Americas with profiles of companies such as Transocean, Noble
Corporation, Noble Offshore Drilling, Ensco International and Seadrill
Reasons to buy
The report will enhance your decision making capability. It will allow you
to:
- Develop business strategies with the help of specific insights about
the offshore drilling industry in the Americas.
- Identify opportunities
and challenges in the offshore drilling industry in the Americas.
-
Understand the market positioning of the companies operating through the value
chain in the crude oil industry in South and Central America.
- Increase
future revenues and profitability with the help of insights on the future
opportunities and critical success factors in the offshore drilling industry
of the Americas.
- Benchmark your operations and strategies against the
major players in the offshore drilling industry in the Americas.
Table of Contents
1 Table of Contents
1 Table of Contents 5
1.1 List of Tables 8
1.2
List of Figures 9
2 The Offshore Drilling Industry In The Americas To 2015
10
2.1 Report Guidance 10
3 Introduction to the Offshore Drilling
Industry 11
3.1 Significance of Offshore Drilling and Major Offshore Areas
in the Americas 11
3.2 Impact of the Offshore Exploration Business on the
Offshore Drilling Business 11
3.3 Importance of Various Local Government
and Private Regulations Influencing the Offshore Exploration and Drilling
Business 11
3.4 Offshore Drilling Business Development and Key Bid
Evaluation Criteria (BEC) 12
3.4.1 Technical Suitability 12
3.4.2
Price 12
3.4.3 Availability 12
3.5 The Offshore Drilling Industry and
Its Role as a Part of the Upstream Oil and Gas Industry Value Chain 12
3.6
Types of Rig and Support Services 13
3.6.1 Mobile Bottom Supported Rigs
13
3.6.2 Floating Rigs 13
3.6.3 Key Technologies Used As Supporting
Mechanisms in Floating Rigs 14
3.6.4 Subsea Production and Processing
Systems 14
3.7 Offshore Drilling Technology Concepts 15
3.7.1
Exploratory Wells 15
3.7.2 Appraisal Wells 15
3.7.3 Development Wells
15
3.7.4 Deepwater Drilling 15
3.7.5 Rotary Drilling Procedures 15
3.8 Key Allied Segments Supplementing the Core Offshore Drilling Business
16
3.8.1 Oilfield Services 16
3.8.2 Geo-Scientific Support Services
16
3.8.3 Rig Support Services 16
3.8.4 Engineering and Equipment
Support Services 16
4 Key Trends and Challenges in the Offshore Drilling
Industry of the Americas 17
4.1 Key Drivers of the Offshore Drilling
Industry of the Americas 17
4.1.1 C-NLOPB Fresh Bid Invitations amidst
Stringent Regulation Reviews Signal Strong Potential for Oil Exploration and
Production Industry in Canada 17
4.1.2 New Gas Discovery at Perla Oilfield
Boosts Offshore Drilling Business Prospects in Venezuela 17
4.1.3 Growth
in Oil and Gas Demand in the Long Term and the Increase in Offshore Oil and
Gas Production are Driving the Growth of the Offshore Drilling Industry 18
4.1.4 Increasing Deep and Ultra Deep Water Exploration and Production is
Driving the Growth of the Offshore Drilling Industry 18
4.1.5 Rapid
Technological Advances are a Key Driver of the Development of the Offshore
Drilling Industry 19
4.2 Major Challenges in The Offshore Drilling
Industry 19
4.2.1 Offshore Drilling Industry in the US is Expected to be
Temporarily Hampered Due to the New US Offshore Drilling Moratorium 19
4.2.2 Gulf Oil Spill Leading to Stiffer Technical Standards, Which Will Have
an Impact on the Offshore Drilling Business in the US 20
4.2.3 Global
Economic Slowdown and Low Commodity Prices are a Challenge for the Growth of
the Offshore Drilling Industry in the Short Term 20
4.2.4 Decreases in
Exploration and Production Capital Expenditure is a Major Challenge for the
Offshore Drilling Contractors 22
4.2.5 Highly Competitive Drilling
Industry with Intense Price Competition in Addition to the Decrease in the
Drilling Activity will be a Major Challenge 23
4.2.6 Argentina Struggling
To Attract Investors Because Of Low Geological Attractiveness 23
4.3
Mergers and Acquisitions in the Offshore Drilling Industry in the Americas
23
5 Offshore Drilling Forecast for the Americas to 2015 25
5.1
Offshore Drilling Expenditure Forecast for the Americas To 2015 25
5.2
Offshore Drilling Expenditure Forecast for the Americas by Region,
2000-2015 27
5.3 Offshore Well Forecast for the Americas To 2015
29
5.4 Offshore Well Forecast for the Americas To 2015, by Region 30
5.5 Profiles of the Major Offshore Drilling Contractors in the Americas 32
5.5.1 Transocean Ltd. 32
5.5.2 Noble Corporation 33
5.5.3 Diamond
Offshore Drilling 33
5.5.4 Ensco International 34
5.5.5 Seadrill
34
6 Key North American Countries’ Offshore Wells and Drilling
Expenditure Statistics 35
6.1 North America, Offshore Drilling Forecast To
2015 35
6.1.1 North America, Offshore Drilling Expenditure Forecast To
2015, by Water Depth 35
6.1.2 North America, Offshore Drilling Expenditure
Forecast To 2015, by Country 37
6.1.3 North America Offshore Wells
Forecast To 2015 39
6.1.4 North America Offshore Wells Forecast to 2015,
by Country 41
6.2 The US, Offshore Drilling Wells Statistics and
Expenditure To 2015 42
6.2.1 The US, Offshore Wells Forecast,
2000-2015 43
6.2.2 The US, Offshore Drilling Expenditure, by Water
Depth, 2000-2015 44
6.2.3 The US, Top Lease Holders, 2009 46
6.3
Canada, Offshore Drilling Expenditure, Forecast To 2015 47
6.3.1 Canada,
Offshore Wells, Historical Figures and Forecast, 2000-2015 47
6.3.2
Canada, Offshore Drilling Expenditure, by Water Depth, 2000-2015 49
6.3.3 Canada, Top Lease Holders, 2009 50
7 Key South and Central American
Countries’ Offshore Wells and Drilling Expenditure Statistics 51
7.1
South and Central America, Offshore Drilling Forecast To 2015 51
7.1.1
South and Central America, Offshore Drilling Expenditure, Forecast To 2015, by
Water Depth 52
7.1.2 South and Central America, Offshore Drilling
Expenditure, Forecast to 2015, by Country 54
7.1.3 South and Central
America, Offshore Wells, Forecast To 2015 56
7.1.4 South and Central
America, Offshore Wells, Forecast to 2015, by Country 58
7.2 Brazil,
Offshore Drilling Wells, Statistics and Expenditure To 2015 60
7.2.1
Brazil, Offshore Wells, Forecast, 2000-2015 60
7.2.2 Brazil,
Offshore Drilling Expenditure, by Water Depth, 2000-2015 62
7.2.3
Brazil, Top Lease Holders, 2009 64
7.3 Venezuela, Offshore Drilling Wells,
Statistics and Expenditure To 2015 65
7.3.1 Venezuela, Offshore Wells,
Forecast, 2000-2015 65
7.3.2 Venezuela, Offshore Drilling
Expenditure, by Water Depth, 2000-2015 67
7.3.3 Venezuela, Top Lease
Holders, 2009 68
7.4 Argentina, Offshore Drilling Wells, Statistics and
Expenditure To 2015 69
7.4.1 Argentina, Offshore Wells, Forecast,
2000-2015 69
7.4.2 Argentina, Offshore Drilling Expenditure, by
Water Depth, 2000-2015 70
7.4.3 Argentina, Top Lease Holders, 2009
72
7.5 Trinidad and Tobago, Offshore Drilling Wells, Statistics and
Expenditure, 2000-2015 73
7.5.1 Trinidad and Tobago, Offshore Wells,
Forecast, 2000-2015 73
7.5.2 Trinidad and Tobago, Offshore Drilling
Expenditure, by Water Depth, 2000-2015 75
7.5.3 Trinidad and
Tobago, Top Lease Holders, 2009 77
7.6 Mexico, Offshore Drilling Wells,
Statistics and Expenditure To 2015 78
7.6.1 Mexico, Offshore Wells
Forecast, 2000-2015 78
7.6.2 Mexico, Offshore Drilling Expenditure,
By Water Depth, 2000-2015 80
7.6.3 Mexico, Top Lease Holders, 2009
82
8 Appendix 83
8.1 Methodology 83
8.1.1 Coverage 83
8.1.2
Secondary Research 83
8.1.3 Primary Research 83
8.1.4 Expert Panel
Validation 84
8.2 Abbreviations 84
8.3 Contact Us 84
8.4 About GBI
Research 84
8.5 Disclaimer 85
1.1 List of Tables
Table 1: Oil
and Gas Expenditure ($ bn), 2005-2009 22
Table 2: Merger and
Acquisition and Asset Transaction Activity in the Offshore Drilling Industry
($m), 2007-2009 24
Table 3: Offshore Drilling Expenditure, by Water
Depth, Americas (US$bn), 2000-15 26
Table 4: Offshore Drilling
Expenditure, by Region, The Americas ($ bn), 2000-2015 28
Table 5:
Offshore Wells Drilled, The Americas, 2000-2015 29
Table 6: Offshore
Wells Drilled, Americas, by Region, 2000-2015 31
Table 7: Transocean Ltd.,
Rig Fleet Summary for the Americas, 2010 32
Table 8: Transocean, Rigs, By
Country, 2010 32
Table 9: Noble Corporation—Rig Fleet Summary for
the Americas, 2010 33
Table 10: Diamond Offshore—Rig Fleet Summary
for the Americas, 2010 33
Table 11: Ensco International—Rig Fleet
Summary for the Americas, 2010 34
Table 12: Seadrill—Rig Fleet
Summary for the Americas, 2010 34
Table 13: Offshore Drilling Expenditure,
by Water Depth, North America, ($ bn), 2000-2015 36
Table 14:
Offshore Drilling Expenditure, by Country, North America, ($ bn),
2000-2015 38
Table 15: Offshore Wells Drilled, North America,
2000-2015 40
Table 16: Offshore Wells Drilled, North America, by Country,
2000-2015 42
Table 17: Offshore Wells Drilled, The US,
2000-2015 43
Table 18: Offshore Drilling Expenditure, The US ($ bn),
2000-2015 45
Table 19: Top Offshore Lease Holders, The US, 2009
46
Table 20: Offshore Wells, Canada, 2000-2015 48
Table 21:
Offshore Drilling Expenditure ($ bn), Canada, 2000-2015 49
Table 22:
Top Offshore Lease Holders, Canada, 2009 50
Table 23: Offshore Drilling
Expenditure, by Water Depth, South and Central America, ($ bn),
2000-2015 53
Table 24: Offshore Drilling Expenditure ($ bn), South
America, by Country, 2000-2015 55
Table 25: Offshore Wells, South
America, 2000-2015 57
Table 26: Offshore Wells by Country, South and
Central America, 2000-2015 59
Table 27: Offshore Wells Drilled,
Brazil, 2000-2015 61
Table 28: Offshore Drilling Expenditure, by
Water Depth, Brazil ($ bn), 2000-15 63
Table 29: Top Offshore Lease
Holders, Brazil, 2009 64
Table 30: Offshore Wells Drilled, Venezuela,
2000-2015 66
Table 31: Offshore Drilling Expenditure, by Water
Depth, Venezuela, ($ bn), 2000-2015 67
Table 32: Top Lease Holders,
Venezuela, 2009 68
Table 33: Offshore Wells Drilled, Argentina, 2009
69
Table 34: Offshore Drilling Expenditure, Argentina, ($ bn),
2000-2015 71
Table 35: Top Lease Holders, Argentina, 2009 72
Table 36: Total Offshore Wells Drilled, Trinidad and Tobago, 2000-2015
74
Table 37: Offshore Drilling Expenditure, Trinidad and Tobago, ($ bn),
2000-2015 76
Table 38: Top Offshore Lease Holders, Trinidad and
Tobago, 2009 77
Table 39: Offshore Wells Drilled, Mexico, 2000-2015
79
Table 40: Offshore Drilling Expenditure, by Water Depth, Mexico ($ bn),
2000-2015 81
Table 41: Top Offshore Lease Holders, Mexico,
2000-2009 82
1.2 List of Figures
Figure 1: Crude Oil
Price, Brent and WTI, Natural Gas Price, Henry Hub, Aug 2009 - Jul 2010
21
Figure 2: Oil and Gas Expenditure ($ bn), 2005-2009 22
Figure
3: Merger and Acquisition and Asset Transaction Activity in the Offshore
Drilling Industry ($m), 2007-2009 24
Figure 4: Offshore Drilling
Expenditure, by Water Depth, Americas (US$bn), 2000-15 25
Figure 5:
Offshore Drilling Expenditure, by Region, The Americas ($ bn), 2000-2015
27
Figure 6: Offshore Wells Drilled, The Americas, 2000-2015
29
Figure 7: Offshore Wells Drilled, Americas, by Region, 2000-2015 30
Figure 8: Offshore Drilling Expenditure, by Water Depth, North America, ($
bn), 2000-2015 36
Figure 9: Offshore Drilling Expenditure, by
Country, North America, ($ bn), 2000-2015 37
Figure 10:
Offshore Wells Drilled, North America, 2000-2015 39
Figure 11: Offshore
Wells Drilled, North America, by Country, 2000-2015 41
Figure 12:
Offshore Wells Drilled, The US, 2000-2015 43
Figure 13: Offshore
Drilling Expenditure, The US ($ bn), 2000-2015 44
Figure 14: Top
Offshore Lease Holders, The US, 2009 46
Figure 15: Offshore Wells,
Canada, 2000-2015 47
Figure 16: Offshore Drilling Expenditure ($
bn), Canada, 2000-2015 49
Figure 17: Top Offshore Lease Holders,
Canada, 2009 50
Figure 18: Offshore Drilling Expenditure, by Water Depth,
South and Central America, ($ bn), 2000-2015 52
Figure 19: Offshore
Drilling Expenditure ($ bn), South America, by Country, 2000-2015 54
Figure 20: Offshore Wells, South America, 2000-2015 56
Figure
21: Offshore Wells by Country, South and Central America, 2000-2015
58
Figure 22: Offshore Wells Drilled, Brazil, 2000-2015 60
Figure 23: Offshore Drilling Expenditure, by Water Depth, Brazil ($ bn),
2000-2015 62
Figure 24: Top Offshore Lease Holders, Brazil, 2009
64
Figure 25: Total Offshore Wells Drilled, Venezuela, 2000-2015
65
Figure 26: Offshore Drilling Expenditure, by Water Depth, Venezuela, ($
bn), 2000-2015 67
Figure 27: Top Lease Holders, Venezuela, 2009
68
Figure 28: Offshore Wells Drilled, Argentina, 2009 69
Figure 29:
Offshore Drilling Expenditure, Argentina, ($ bn), 2000-2015 70
Figure 30: Top Lease Holders, Argentina, 2009 72
Figure 31: Offshore
Wells Drilled, Trinidad and Tobago, 2000-2015 73
Figure 32: Offshore
Drilling Expenditure, Trinidad and Tobago, ($ bn), 2000-2015 75
Figure 33: Top Offshore Lease Holders, Trinidad and Tobago, 2009 77
Figure
34: Offshore Wells Drilled, Mexico, 2000-2015 78
Figure 35: Offshore
Drilling Expenditure, by Water Depth, Mexico ($ bn), 2000-2015 80
Figure 36: Top Offshore Lease Holders, Mexico, 2000-2009 82
