Subsea Production and Processing System Market : Global Industry Analysis And Forecast (2023-2029)

Subsea Production and Processing System Market was valued at US $ 14.87 Bn. in 2022. Global Subsea Production and Processing System Market size is estimated to grow at a CAGR of 2.37%.
Subsea Production and Processing System Market Overview:
Subsea systems primarily consist of two components, a production system, and a processing system. They are typical wells found on sea beds in deep or shallow water. Subsea wells, seabed wellheads, a subsea tie-in to flowline system, subsea tree, subsea equipment, and control facilities are all part of modern subsea production systems. While treatment and handling of produced fluids before reaching an onshore facility or production platform are referred to as subsea processing systems.To know about the Research Methodology :- Request Free Sample Report

Subsea production and processing systems are major inventions that allow industries to operate in deeper water, which helps to limit rising costs. The system involves the installation of the system in water depths up to 10000 Ft, pressure up to 15000 Psi, and temperature up to 350 0C.
Subsea Production and Processing System Market Dynamics:
The growing drilling activities across the globe:

The growing drilling and completion activities across the globe are primarily driving the demand for the subsea production and processing system. According to the report, estimation it is expected more than 54,000 wells to be drilled across the globe in 2022, with a 12% increase from 2022 levels. While in 2022 drilling activity is expected to rise significantly is by another 19% increase to more than 64,500 wells across the globe.

For instance, onshore drilling activity is expected to grow by 12% from 46,000 wells drilled in 2022 to 51,700 wells drilled in 2022, before increasing by another 19% in 2022 to 61,700 wells. Drilling activity offshore is expected to grow by roughly 10% in 2022. In 2022, the offshore wells drilled about 2300, while in 2022 is 2500.

The Growing Oil and Gas Production Across the globe:

The Market is showing northward direction growth, thanks to the rising need for deepwater oil and gas production and exploration activities across the globe. Increased investment in offshore exploration projects by energy-intensive economies plays a significant role in generating demand for subsea systems. Increased petrochemical use across industries, such as paints and coatings, energy, transportation, textiles, and plastic, is expected to boost oil exploration, resulting in the adoption of high-grade subsea production and processing systems during the forecast period.

Ultra-deep and deep oil exploration has grown, as a result of technological advancement and strong financial backing, which is driving the adoption of subsea technologies. According to the BP Statistical Review of World Energy 2022, oil consumption increased by an average of 1.4 million barrels per day, which is 1.5% on average, meaning that considerable exploration and extraction activities have occurred, driving sales of subsea systems.

Subsea Production and Processing System ongoing Key Projects across the globe:

The market for Subsea Production and Processing systems has grown significantly over the last few years, as the Oil & Gas industry has grown more dependent on ultra-deepwater offshore activity.

Subsea Production and Processing Key projects currently in operation:

1. Upper Zakum - Production Capacity Enhancement

Location: UAE | Cost: $21.8 billion

The Zakum Development Company (ZADCO), a joint venture between Abu Dhabi National Oil Company and Shell, operates the world's second largest offshore oil field. The field is expected to possess more than 50 billion barrels of oil equivalent. The project was divided into three phases: the first covered the construction of early production facilities, the second covered the construction of permanent production facilities to boost production by another 150,000 b/d, and the third covered a series of smaller projects aimed at maintaining production at the targeted 750,000 b/d. By drilling more wells using extended-reach drilling and maximum reservoir contact well methods, Company hopes to expand production from the field from 750,000 b/d to about 1 million b/d by 2029.

2. Ras Laffan - Qatargas – NFE

Location: Qatar | Cost: $28 billion

The Ras Laffan refinery on Qatar's coast produces about 10 million tonnes of LNG per year. Six new LNG trains are being installed at Ras Laffan to generate an additional 37.2 mtpa of LNG, as part of a planned expansion of output from the North Field by 2029. Onshore facilities will collect 4.6 billion cubic feet per day of feed gas from the North Field and generate 4,000 tonnes of ethane per day as feedstock for a petrochemical project in Qatar, 260,000 barrels per day of condensate, and 11,000 tonnes per day of LPG.

3. Zubair Oil Field - Rehabilitation Phase and Enhanced Re-Development Phase

Location: Iraq | Cost: $18 billion

With 4.5 billion barrels of known reserves, the Zubair oil field is one of the world’s largest oil fields. To increase output from Zubair to a plateau of 700,000 barrels per day, the company has been performing expansion works through a rehabilitation phase and an enhanced re-development phase. In early 2022, production capacity hit 500,000 barrels per day. The company has announced intentions to invest $7 billion in the area for future development in May 2021. Initial intentions to reach 700,000 b/d by 2022 are still in place.
Subsea Production and Processing System Market Segment Analysis:
Based on the System type, the market is segmented into Boosting, Separation, Injection, and Gas Compression. The Boosting segment held the largest market share, accounting for 38.2% in 2022. The rising demand for petroleum products and fossil fuels across the globe is driving the product demand during the forecast period. The Subsea boosting system is effective in improving the production of oil & gas from developed reservoirs, as a result, the adoption of the system is increasing across the globe. The subsea boosting system enhances the field's monetary life by supplementing recovery and creation, which is boosting the demand for the product for this segment.

Based on the Water Depth, the market is segmented into Shallow Water, and Deep Water, and Ultra-deep water. The Deep Water and Ultra-deep water segment held the largest market share, accounting for 72.6% in 2022. The Deepwater and ultra-deep water processes have a direct impact on offshore subsea processing and output. Several countries shifted to onshore projects after oil prices fell in 2014. As a result, countries such as Brazil, the United States, and Egypt began deep-water and ultra-deep-water explorations, which are more profitable, and are expected to drive the market during the forecast period.

In December 2021, Chevron Corporation stated that it will construct the Anchor Project in the Gulf of Mexico, which will be the oil and gas industry's first deep-water and high-pressure project. For the high-pressure environment, this project is expected to necessitate improvement in the subsea production and processing system, and it is expected to boost the subsea production and processing system market over the forecast period.
Regional Insights:
North America region held the largest market share accounted for 37.41% in 2022. North America is the largest producer of oil and gas across the globe. For instance, in the region there are more than around 900,000 active oil and gas wells. In addition, large-scale offshore operations are also boosting the subsea production and processing system market growth in the region. Mexico's annual oil output has been declining in recent years as a result of the massive Cantrell field in the Gulf of Mexico's shallow waters has dried up. The Mexican government, on the other hand, is attempting to stimulate private investment in regions of the Gulf of Mexico. As a result, rising oil and gas activity in the region is likely to boost demand for subsea production and processing systems in North America region during the forecast period.

The objective of the report is to present a comprehensive analysis of the global Subsea Production and Processing System Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also help in understanding the Subsea Production and Processing System Market dynamic, structure by analyzing the market segments and projecting the Subsea Production and Processing System Market size. Clear representation of competitive analysis of key players by Water Depth, price, financial position, product portfolio, growth strategies, and regional presence in the Subsea Production and Processing System Market make the report investor’s guide.
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Subsea Production and Processing System Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 14.87 Bn.


Forecast Period 2023 to 2029 CAGR:
2.37%
Market Size in 2029:
US $ 17.53 Bn.


 Segments Covered:
by System type
Boosting
Separation


by Production System Component
Subsea Trees
Subsea Umbilicals, Risers, & Flowlines
Subsea Wellhead
Others


by Water Depth
Injection
Gas Compression
Shallow water
Deep Water and Ultra-deep water



Subsea Production and Processing System Market by Region
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
North America (United States, Canada and Mexico)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Key Players
1. Schlumberger Ltd.
2. Halliburton Company
3. China Oilfield Services Ltd.
4. Weatherford International Plc.
5. Baker Hughes Company
6. Transocean
7. GE Energy
8. Aker Solutions
9. FMC Technologies
10. Drill-Quip Inc.
11. GE Oil & Gas
12. FMC Technologies Inc.
13. OneSubsea
14. Weatherford International Ltd.
15. Oceaneering International
16. Proserv Group
17. Kongsberg Oil and Gas Technologies
18. Zubair Oil Field

Frequently Asked Questions:

1] What segments are covered in the Subsea Production and Processing System Market report?
Ans. The segments covered in the Subsea Production and Processing System Market report are based on System type and Water Depth.

2] Which region is expected to hold the highest share in the Subsea Production and Processing System Market?
Ans. The North America region is expected to hold the highest share in the Subsea Production , Production System Component and Processing System Market.

3] What is the market size of the Subsea Production and Processing System Market by 2029?
Ans. The market size of the Subsea Production and Processing System Market by 2029 is US$ 17.53 Bn.

4] What is the forecast period for the Subsea Production and Processing System Market?
Ans. The forecast period for the Subsea Production and Processing System Market is 2023-2029.

5] What was the market size of the Subsea Production and Processing System Market in 2022?
Ans. The market size of the Subsea Production and Processing System Market in 2022 was US$ 14.87 Bn.