|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD
2.97 billion
|
|
CAGR
(2023-2028)
|
8.41%
|
|
Fastest
Growing Segment
|
Flowlines
|
|
Largest
Market
|
Asia
Pacific
|
Market Overview
The Global Oil & Gas Subsea Umbilicals, Risers
and Flowlines (SURF) Market was valued at USD 2.97 billion in 2022 and is expected
to grow at a CAGR of 8.41% during the forecast period. The subsea umbilicals,
risers, and flowlines market is expected to experience significant growth due
to the increasing demand for energy-efficient systems capable of transporting
crude oil and gas to processing plants. These systems play a crucial role in
connecting subsea production to surface facilities, thereby enhancing
production rates and becoming the preferred choice. Furthermore, the industry
outlook will be further stimulated by the growing investments in subsea
projects, the rising installation of floating rigs, and the escalating energy
demand.
Key Market Drivers
Expanding Offshore Exploration and Production
Activities
The ongoing expansion of offshore exploration and
production (E&P) activities is a key driver behind the growth of the Global
Oil & Gas Subsea Umbilicals, Risers, and Flowlines (SURF) market. Offshore
reserves, especially in deepwater and ultra-deepwater environments, have gained
significant importance as onshore resources are depleted.
Consequently, oil and gas companies are venturing
into more challenging subsea locations and deeper waters to access untapped
hydrocarbon reserves. This surge in offshore E&P activities necessitates
the development and deployment of advanced subsea infrastructure, including
SURF systems. Umbilicals, risers, and flowlines play a critical role in subsea
infrastructure, serving as the lifelines connecting subsea wells to surface
facilities. They facilitate the transportation of hydrocarbons from the seabed
to processing and storage facilities, making them indispensable in offshore
operations.
As oil and gas operators explore deeper waters and
exploit more remote reservoirs, the demand for robust SURF systems has
skyrocketed. These systems need to be designed to withstand high-pressure,
high-temperature (HP/HT) conditions, corrosive environments, and extreme subsea
challenges. Consequently, SURF providers are witnessing a surge in demand for
their products and services, driving market growth.
Technological Advancements and Innovation
The ongoing technological advancements and
innovation serve as the second major driver in the SURF market. The oil and gas
industry persistently pursues avenues to enhance operational efficiency,
safety, and cost-effectiveness, especially in the subsea domain. To achieve
these objectives, substantial investments have been allocated to research and
development, aiming to create state-of-the-art SURF solutions.
Innovative materials, manufacturing processes, and
subsea equipment have played a pivotal role in the development of more robust
and reliable SURF components. Notably, the utilization of composite materials
has significantly improved the durability of umbilicals, enabling them to
withstand corrosion, high pressures, and extreme temperatures prevalent in
deepwater environments. Moreover, advancements in flowline insulation and riser
design have enhanced heat resistance and flow assurance.
Furthermore, the progress made in flowline coatings
and insulation materials has resulted in improved thermal and pressure
resistance, ensuring efficient hydrocarbon transport from subsea wells to the
surface. These innovations not only extend the lifespan of SURF systems but
also reduce maintenance and replacement costs, thereby driving their widespread
adoption.
Increasing Deepwater and Ultra-Deepwater Projects
The Global SURF market is driven by three key
factors. Firstly, the rising number of deepwater and ultra-deepwater projects
plays a significant role. These projects focus on drilling at depths exceeding
500 meters and 1,500 meters, respectively, and are crucial for oil and gas
exploration and production. The popularity of deepwater and ultra-deepwater
projects stems from several contributing factors.
Firstly, as shallow water reserves dwindle, oil and
gas companies are compelled to explore deeper waters to tap into untapped
hydrocarbon reserves. Additionally, advancements in subsea technologies have
made operating in these challenging environments more feasible, thereby
enhancing the economic viability of deepwater and ultra-deepwater projects.
This trend directly impacts the SURF market, as the development of subsea
infrastructure tailored for such conditions becomes imperative. Deepwater and
ultra-deepwater SURF systems must be designed to withstand extreme pressures,
temperatures, and corrosive subsea environments.
Consequently, there is a growing demand for
specialized SURF solutions optimized for deepwater and ultra-deepwater
projects, which drives market growth. In conclusion, the growth of the Global
Oil & Gas Subsea Umbilicals, Risers, and Flowlines (SURF) market is
propelled by the expansion of offshore E&P activities, technological
advancements, and the increasing number of deepwater and ultra-deepwater
projects. These factors collectively contribute to the market's continuous
expansion and evolution, enabling it to meet the evolving needs of the oil and
gas industry.
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Key Market Challenges
Harsh Subsea Environments and Deepwater Challenges
One of the most significant challenges in the
Global Oil & Gas Subsea Umbilicals, Risers, and Flowlines (SURF) market
lies in the harsh and demanding subsea environments where these systems
operate, particularly in deepwater and ultra-deepwater regions. Deepwater
drilling, characterized by water depths exceeding 500 meters, and
ultra-deepwater drilling, extending beyond 1,500 meters, present unique
challenges to SURF systems due to extreme pressures, temperatures, and
corrosive conditions.
In deepwater and ultra-deepwater projects, subsea
equipment, such as umbilicals, risers, and flowlines, must withstand immense
hydrostatic pressures that increase with water depth. These pressures can reach
several thousand pounds per square inch (psi), subjecting SURF components to
significant mechanical stress. Additionally, extreme subsea temperatures can
range from near-freezing conditions to over 300 degrees Fahrenheit (150 degrees
Celsius), requiring insulation and thermal protection for flowlines and risers.
Corrosion is another critical concern as subsea equipment is exposed to
corrosive seawater and aggressive chemicals.
The combination of high pressures, temperatures,
and corrosive agents can result in equipment degradation and pose considerable
operational and safety risks. Addressing these challenges necessitates the use
of specialized materials, coatings, and design considerations. Manufacturers
must develop robust and corrosion-resistant SURF systems capable of enduring
the harsh subsea conditions encountered in deepwater and ultra-deepwater
projects. Meeting these technical demands is vital to ensuring the safety, reliability,
and longevity of subsea infrastructure.
Cost Pressures and Project Economics
Another challenge in the SURF market pertains to
cost pressures and project economics. Offshore oil and gas projects,
particularly those situated in deepwater and ultra-deepwater locations, involve
significant capital investment and inherent operational expenses. These costs
are driven by various factors, such as the procurement of specialized subsea
equipment, drilling and installation costs, as well as ongoing maintenance
requirements.
Oil and gas companies, aiming to maximize project
profitability, place considerable emphasis on cost control and efficiency. This
cost-conscious approach extends to the SURF components, which constitute a
substantial portion of the overall project expenditures. Consequently,
manufacturers and service providers in the SURF market face tremendous pressure
to deliver cost-effective solutions without compromising quality, safety, or
performance. Finding the right balance between cost considerations and the demand
for cutting-edge technology and reliability presents a significant challenge.
Manufacturers must continuously innovate to reduce
manufacturing costs, enhance production efficiency, and optimize materials, all
while maintaining the stringent standards required for subsea equipment.
Moreover, project operators must meticulously assess the economic feasibility
of deepwater and ultra-deepwater developments, making informed decisions
regarding the selection of SURF systems and equipment that align with project
budgets and objectives.
Regulatory and Environmental Compliance
Offshore drilling operations, including the
deployment of SURF systems, are subject to rigorous regulatory requirements
aimed at upholding environmental and safety standards. Regulatory bodies in
different regions have established rules governing areas such as emissions
control, waste disposal, well integrity, and equipment performance. Ensuring
compliance with these regulatory standards is of utmost importance, as
non-compliance can result in substantial fines, project delays, reputational
damage, and environmental harm.
Manufacturers and service providers in the SURF
market face the complex task of navigating a diverse landscape of regulatory
frameworks that can vary significantly from one jurisdiction to another.
Moreover, environmental concerns and societal expectations place additional
emphasis on adopting eco-friendly and sustainable practices within the
industry. This includes the development of environmentally responsible SURF
solutions that minimize the ecological impact of offshore operations.
Manufacturers must allocate resources to research and development to create
greener materials, coatings, and production processes that align with evolving
environmental standards. Successfully addressing these regulatory and
environmental challenges requires a comprehensive understanding of the
regulatory landscape, close collaboration with regulatory authorities, and a
commitment to sustainability and responsible business practices.
Manufacturers and project operators must adapt to
ever-evolving regulations while proactively addressing environmental concerns
to ensure the long-term viability of offshore oil and gas projects and the SURF
systems that support them.
Key Market Trends
Digitalization and Remote Monitoring
One of the key trends observed in the Global Oil
& Gas Subsea Umbilicals, Risers, and Flowlines (SURF) market is the
extensive adoption of digitalization and remote monitoring technologies.
Digitalization has revolutionized the oil and gas industry by facilitating
real-time data acquisition, analytics, and remote control of subsea assets.
This trend holds particular significance in the context of SURF systems, which
serve as vital components of subsea infrastructure.
Digitalization offers notable advantages to the
SURF market. Advanced sensors and monitoring systems can provide real-time data
on the condition and performance of umbilicals, risers, and flowlines. This
data can be transmitted to onshore or offshore control centers, empowering
operators to make informed decisions, optimize production, and proactively
identify potential issues. Through remote monitoring, asset integrity
management can be enhanced, downtime can be reduced, and safety can be improved
by enabling predictive maintenance and swift response to anomalies.
Sustainability and Environmental Responsibility
A significant trend observed in the SURF market is
the growing emphasis on sustainability and environmental responsibility. The
oil and gas industry is facing heightened scrutiny regarding its environmental
impact, resulting in a rising demand for eco-friendly solutions across the
entire value chain. This trend is also evident in subsea infrastructure,
including SURF systems.
Manufacturers and service providers in the SURF
market are actively responding to this trend by developing environmentally
responsible solutions. This includes the utilization of eco-friendly materials,
coatings, and manufacturing processes that effectively reduce the ecological
footprint of SURF components.
Additionally, concerted efforts are being made to
minimize the potential for oil spills and leaks from subsea equipment, further
demonstrating the industry's commitment to sustainability objectives. Meeting
these environmental demands not only enhances the reputation of SURF providers
but also opens doors to projects with stringent environmental requirements.
Segmental Insights
Product Insights
The Flowlines
segment holds a significant market share in the Global Oil & Gas Subsea
Umbilicals, Risers and Flowlines (SURF) Market. Flowlines play a pivotal role
in the Global Oil & Gas Subsea Umbilicals, Risers, and Flowlines (SURF)
Market, facilitating the transportation of hydrocarbons from subsea wells to
surface facilities. These pipelines, known as flowlines, are designed to
transport oil, gas, or other hydrocarbons from subsea wellheads to production
facilities. They encompass various types, including production flowlines,
export flowlines, and infield flowlines. The growth of this segment is fuelled
by ongoing advancements in flowline materials and design.
The utilization of advanced
materials such as corrosion-resistant alloys and composite materials enhances
the durability and performance of flowlines. Moreover, improvements in
insulation and thermal protection contribute to enhanced flow assurance. The design
of flowlines, whether rigid or flexible, is contingent upon factors such as
water depth, seabed conditions, and the nature of the hydrocarbons being
transported.
The increasing interest in
deepwater and ultra-deepwater exploration projects is a significant driving
force for the flowlines segment. These demanding environments necessitate
advanced flowline systems capable of withstanding extreme pressures, temperatures,
and corrosive conditions. The development of advanced materials and coatings
that augment corrosion resistance and thermal protection presents promising
opportunities. Manufacturers that can provide innovative solutions in this
domain are well-positioned.
Type Insights
Shallow Water segment is expected to dominate the market during the
forecast period. The shallow water segment within the Global Oil & Gas
Subsea Umbilicals, Risers, and Flowlines (SURF) Market encompasses drilling and
production activities conducted at water depths of less than 500 meters.
Shallow water projects are characterized by relatively lower technical
complexity compared to deepwater and ultra-deepwater projects. They often
involve the use of fixed platforms, minimal subsea hardware, and
straightforward installation processes.
Shallow water projects are
generally more cost-effective and accessible compared to deepwater and
ultra-deepwater developments. The proximity to shore reduces transportation
costs, logistical complexities, and installation challenges. This makes shallow
water projects attractive to oil and gas operators looking to optimize their
project economics. Manufacturers and service providers in the shallow water
segment can capitalize on the demand for cost-efficient SURF solutions tailored
to these conditions.
Streamlined product
designs, efficient installation processes, and shorter project timelines are
key selling points in this segment. Shallow water fields are often developed
using fixed platforms. These platforms serve as the foundation for drilling
rigs, processing facilities, and wellheads. The trend is to design modular and
cost-effective platforms that can be easily installed and maintained. Shallow
water fields offer a cost-effective option for oil and gas companies, enabling
them to tap into reserves without the high costs associated with deepwater or
ultra-deepwater projects.
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Regional Insights
The Asia Pacific region is expected to dominate the
market during the forecast period. It is a significant contributor to the
offshore oil and gas industry, with multiple countries in the region actively
involved in exploration and production activities. The Asia-Pacific region is
home to some of the world's largest offshore oil and gas reserves. Countries
such as China, Australia, Malaysia, Indonesia, and Vietnam have extensive
offshore exploration and production operations. These reserves often require
intricate subsea infrastructure, including SURF systems.
The Asia-Pacific region is currently experiencing
sustained growth in offshore oil and gas activities. Exploration and production
companies are venturing into deeper waters to access new reserves, thereby
necessitating advanced SURF solutions for efficient hydrocarbon transportation
to the surface. The region's rapid economic expansion has led to an increased
energy demand, particularly for oil and gas. Offshore reserves serve as a
significant energy source to meet this demand, further bolstering the SURF market.
Numerous countries in the Asia-Pacific region are
focusing on deepwater exploration projects to tap into untapped reserves. These
projects require advanced SURF systems capable of withstanding high pressures
and harsh deep-sea conditions. The Asia-Pacific region boasts abundant offshore
oil and gas resources, serving as a major driving force for the SURF market as
companies seek to harness these reserves to meet energy demands.
Recent Developments
- In September 2019, Var
Energi, a Norwegian oil and gas exploration and production company, awarded a
contract for the engineering, procurement, construction, and installation
(EPCI) of subsea systems (SPS/SURF) for the Balder X project to a consortium composed
of Baker Hughes, a GE company (BHGE), and Ocean Installer. Under the contract,
BHGE and Ocean Installer will be responsible for the engineering, procurement,
construction, and installation of 16 new subsea production systems (SPS),
umbilicals, risers, and flowlines for the Jotun A floating production storage
and offloading (FPSO) unit.
- In August 2021, Prysmian
Group, a leading global provider of energy and telecom cable systems, was
awarded a new contract by Petrobras, a Brazilian multinational petroleum
industry, for the supply of 200 km of high-end deep-water electro-hydraulic
umbilicals using both Steel Tube and Thermoplastic technology. The contract is
valued at approximately USD 78.13 million.
- In June 2021, Nexans
announced that it has secured two contracts from Equinor, an international
energy company with a presence in over 30 countries worldwide, for two offshore
projects. Nexans, a renowned provider of cables and optical fibers, will
manufacture and supply 44 km of steel tube umbilicals and accessories for an
offshore Brazilian project under the first contract. The second order involves
the fabrication of umbilicals for the Askeladd Vest project located in the
southern Barents Sea.
Key Market Players
- ABB Ltd.
- Aker Solutions ASA
- Baker Hughes Co.
- Bureau Veritas SA
- NOV Inc.
- Oceaneering International Inc.
- Parker Hannifin Corp.
- Saipem SPA
- Schlumberger Ltd.
- ArcelorMittal SA
|
By Product
|
By Type
|
By Region
|
- Flowlines
- Umbilicals
- Risers
|
- Shallow
Water
- Deep Water
- Ultra Deep
Water
|
- North
America
- Europe
- South America
- Middle East
& Africa
- Asia Pacific
|
|
Report Scope:
In this report, the Global Oil & Gas Subsea
Umbilicals, Risers and Flowlines (SURF) Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
- Global Oil & Gas Subsea Umbilicals, Risers
and Flowlines (SURF) Market, By
Product:
o Flowlines
o Umbilicals
o Risers
- Global Oil & Gas Subsea Umbilicals, Risers
and Flowlines (SURF) Market, By
Type:
o Shallow Water
o
Deep
Water
o
Ultra
Deep Water
- Global Oil & Gas Subsea Umbilicals, Risers
and Flowlines (SURF) Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global Oil
& Gas Subsea Umbilicals, Risers and Flowlines (SURF) Market.
Available Customizations:
Global Oil & Gas Subsea Umbilicals, Risers and
Flowlines (SURF) Market report with the given market data, Tech Sci
Research offers customizations according to a company's specific needs. The
following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Global Oil & Gas Subsea Umbilicals, Risers and
Flowlines (SURF) Market is an upcoming report to be released soon. If you wish
an early delivery of this report or want to confirm the date of release, please
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