LONDON, Feb. 4, 2016 /PRNewswire/ -- The South America's Deep water and Ultra deep Water Exploration & Production (E&P) Market is growing at XX% CAGR and is expected to reach USD XXX by 2020 from USD XXX in 2015. Growing populations and rapid urbanization around the world has resulted in a growing demand for energy. Oil and gas are the most common fuels in use today, and their demand is rising day by day. This has pushed petroleum companies to intensify their deep water and ultra-deep water offshore activities in order to meet demand and maintain profits. With the fall in oil prices in 2015, resulting in the concerns about the viability of large ultra-deep water projects. Capital Expenditure (CAPEX) and Operational Expenditure (OPEX) are on the rise with fall in oil prices, which is increasing the pressure on the budgets and has become more challenging in the short term. But, with the increase in the demand for Oil & Gas production, the Exploration and Production operators are considering long term plans and delaying the projects rather than cancelling them. There by the growth for deep water and ultra-deep water is on the rise. The growth in South America, primarily in Brazil and Mexico contributes to the major share for Deep and Ultra Deep Water Exploration.
It is expected that the biggest part of the oil and Gas production may come from the pre salts projects in the Ultra Deep water Santos Basin with Petrobras having more than 40 Ultra Deep water Rigs. The Brazil federal energy planning company Empresa de Pesquisa Energetica (EPE) has laid out a 10 year plan for the energy expansion and predicts the country will be able to produce up to 5 MMb/d of oil by 2023. As per the demand, it requires only 3.5 MMb/d. Therefore, the rest of the amount can be used for trade. To achieve this, it is predicted that the country has to invest around 330 Billion USD in the coming decade.
The deep water and ultra-deep waters of offshore Trinidad, Tobago and Barbados have remained unexplored due to structural and stratigraphic complexity. Some measure of Hydrocarbons are encountered in every well and the exploration efforts have been challenged by the sub economic accumulations.
The Exploration and Production (E&P) operators spending is in seismic, drilling, subsea and FPS Submarkets, which is expected to have a promising growth during the forecast period. The Drilling and Completion will represent the largest segment for the deep water market expenditure, where the majority will be spent on the subsea well completions. Floating production systems (FPSs) account for the second largest segment with majority of investments in floating Production, Storage and offloading vessels and the subsea equipment (subsea production hardware and umbilical's, risers, and flow lines) account for the third largest segment in terms of capital expenditure, which can be estimated on the number of wells drilled.
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