Blowout Preventers (BOP) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The blow out preventers (BOP) is expected to grow at a CAGR over 2% during the forecast period of 2020 - 2025. Rising deepwater offshore development activities, owing to the increasing viability of the offshore oil and gas projects is expected to drive the market for BOP, globally. The costs of several offshore oil and gas projects have reduced significantly, as the upstream companies have been ensuring the viability in a lower price environment, such as shale oil and gas play. However, the higher oil price volatility, due to the supply-demand gap, geopolitics, and several other factors, such as higher breakeven for the projects, has been restraining the market for the BOPs over the forecast period.

Key Highlights

• The offshore segment is expected to grow at the fastest rate for blow out preventers market, owing to the increasing exploration and production activities in the deepwater and ultra deepwater areas, globally.
• Digitalization and advancements in BOP technology, after the Deepwater Horizon oil spill of April 2010, in which the failure of the rig’s blowout preventers (BOP) system led to the largest oil spill till date, is expected to act as an opportunity in the market of blow out preventers market.
• Europe is estimated to have the highest growth rate, over the forecast period, with a significant share of the blow out preventers market, in 2018. This is primarily due to the presence of major producing and exporting countries near the North Sea, and the faster growing demand for oil and gas over the forecast period.

Key Market Trends

Offshore Segment to Dominate the Market

• With the rising number of maturing onshore oilfields in the recent years, there has been growth in the offshore exploration and production (E&P) activities. For instance, in the Permian Basin, currently the most important basin in terms of crude oil production, the production from old wells has started to decline, and there is little scope for new discovery in these areas. As a result, the oil and gas industry is shifting towards deeper regions in search of oil and gas, in order to meet the increasing demand.
• Moreover, the share of offshore active rigs count out of the total active rig count in the United States grew from 1.8% in February 2019 to 2.5% October 2019.
• In the United States, deepwater accounted for 50% of the discovered oil and gas resources during 2008-2018. Deepwater gas production is also expected to account for 50% of the 700 billion cubic meter (bcm) rise in offshore gas production by 2040, compared to that of 2018.
• Brazil is one of the largest markets for deepwater oil and gas projects. The Brazilian oil and gas market is driven by successful regulatory changes and improving financials. The Brazilian government is aiming 2 mmb/d of additional oil production by 2027, mostly from deepwater areas.
• This rising deepwater offshore development activity, to meet the increasing crude oil demand, is further expected to drive the demand for BOPs during the forecast period.

Europe to Dominate the Market

• Europe is expected to dominate the market for blow out preventers. Owing to the increasing oil production in the countries such as Russia and Norway.
• Russia have a 106.2 billion barrels proved reserve, as of 2018. Whereas daily oil production in the country is about 11.4 million barrel, and annual export is of approximately USD 129.2 billion. There are already more than 9,500 wells drilled as of 2019. Further, Russia is investing in offshore Arctic oil and gas projects and onshore deposits in Siberia to offset oil production declines at maturing fields.
• In the United Kingdom, a total of 102 wells were drilled on the UKCS in 2018 (85 developments, eight explorations, and nine appraisal). With the most recent tax break, production activities in discoveries, as mentioned earlier, are expected to commence during the forecast period.
• After a long recession, since 2014, Norway’s oil and gas industry is now back on its feet. Oil companies increased their spending for the first time in 2018. The total petroleum production for the first six months, in 2018, was about 114.9 million standard cubic meters of oil equivalent. Additionally, Norway's government expects oil companies to present development plans (PDO) for up to 21 new or expanded offshore oil and gas fields, by the end of 2021.
• Therefore, increasing oil and gas activities in the region are expected to increase the demand for blow out preventers (BOP) over the forecast period in European region.

Competitive Landscape

The blowout preventers (BOP) market is partially consolidated. Some of the key players in this market include Baker Hughes Company, Schlumberger Limited, National Oilwell Varco Inc., Shandong Kerui Holding Group Co. Ltd, and Weatherford International Plc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support