The global market for mobile offshore drilling units (MODU) is expected to expand at a CAGR of almost 9% during 2019-2023, according to a recent report.
The report by ResearchAndMarkets predicts exploration and production (E&P) operations will increase as a result of higher demand for and consumption of oil and gas is increasing due to rising consumption of energy.
With oil and gas E&P operations moving into further remote locations and deeper waters, manufacturers are improving the technologies in MODU to cater to the drilling challenges, regulations, and oil and gas project economics. The recent focus of the oil and gas industry is automation, which improves the safety of workers and the efficacy of oil and gas drilling.
Improvements in equipment will not only boost oilfield production but also increase the adoption of MODUs for offshore drilling. This development is expected to have a positive impact on the overall market growth.
However, uncertainties in the volatility of crude oil prices, adoption of alternative energy sources, and environmental concerns associated with offshore E&P activities may hamper the growth of the MODU industry over the forecast period.
In 2018, the drillship segment had a significant market share, and this trend is expected to continue over the forecast period. Factors such as high mobility and transit speed will play a significant role in the drillship segment to maintain its market position.