Offshore support vessel market to cross US$60 billion by 2024

Shifting trends toward exploration and production across subsea coupled with ongoing expansion of deep-water projects will drive the offshore support vessel market size. Growing measures to untap the unexplored hydrocarbon reserves will further stimulate the business outlook. As per EIA, in 2016, the Gulf of Mexico accounted for 16% of total US crude production and 4.5% of dry natural gas production.

Rising demand for floating production units and drillships will foster the platform supply vessel market growth. Growing installation of FPSOs and FLNG platforms on account of its large production and storage capacity will complement the industry outlook. In 2016, Petronas’ first FLNG unit commenced its operation with a processing capacity of 1.2 million tpy at the Kanowit deep-water field in Malaysia.

Norway offshore support vessel market is predicted to surpass 400 OSV fleet by 2024. Strong orderbook of Norwegian shipyards to cater the O&G industry will positively influence the industry landscape. As per the US Energy Information Administration, in 2016, 7% of global offshore oil production was originated from Norwegian fields.

Shifting trends towards ecofriendly hydrocarbons owing to rising environmental concerns will embellish the offshore support vessel market growth. Adoption of LNG as fuel by major fleet owners owing to government regulations toward reduction of marine emissions will stimulate the product demand. In 2015, IMO implemented a legislation that focusses toward reduction of NO_x content in fuel to 0.5% for the fleets sailing in emission control areas.

US offshore support vessel market is predicted to witness strong growth on account of mature industry and low-risk investment region. Availability of resources across untapped fields along with large ongoing projects will supplement the product demand. A manned tripod structure with a capacity of 5 million ft³ of gas per day and 4500 barrels of oil per day is planned to be installed in the US Gulf of Mexico by end of 2017.

Saudi Arabia offshore support vessel market is set to witness gain over 4% by 2024. Ongoing drilling activities along with new subsea E&P projects will augment the industry landscape. The country has several fields including Safaniya oil field that produces 1.1 – 1.5 million barrels per day and holds 13% of the world total offshore oil production.

Brazil in 2016, accounted for over 60% of the Latin America offshore support vessel market share. Predominant expansion of deep-water pre-salt projects along with positive outlook towards subsea E&P will embellish the industry outlook.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/22092017/offshore-support-vessel-market-to-cross-us60-billion-by-2024/