Rigged up: Falling oil and steel prices will hinder revenue growth
Offshore oil rig and platform construction plays an important role in the United States' energy sector. Growing oil production caused industry revenue to increase at the beginning of the five-year period to 2023. Still, oil price weakness started shortly thereafter and weighed heavily on industry performance, resulting in revenue declines which persisted several years. Also, the COVID-19 pandemic caused all types of travel activity to slump, further lowering oil prices and hampering the purchasing power from upstream oil companies. Offshore oil rig and platform construction revenue has plummeted at a CAGR of 6.7% over the past five years and is expected to total $2.4 billion in 2023, when revenue will fall an estimated 12.8%. Profit will marginally increase as both the cost of labor and purchases drop.
This industry constructs offshore drilling platforms, also known as oil rigs, for oil exploration companies. Many operators also provide offshore platform support services.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.
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