Deep Water Drilling Market Size, Share, Growth, Trends, and Global Industry Analysis: By Type (Semisubmersibles, Drill Ship, Tender Rigs, and Others), By Depth (Deepwater drilling and Ultra-deepwater drilling), and Region Forecast 2019-2030

The deep-water drilling market size was valued at US$ 28,731.3 million in 2023 and is projected to reach a value of US$ 45,835.2 million by 2030, at a CAGR of 6.9% from 2024-2030. Moreover, the U.S. deep-water drilling market is projected to grow significantly, reaching an estimated value of US$ 15,713.6 million by 2032.

The demand for deep-water drilling has risen due to international energy demand and technological advancements in more efficient drilling. However, it is being dragged down by the challenges of high capital expenditures, high environmental regulations, and geopolitical risks. Many opportunities exist in emerging markets, as well as new techniques in recovery, so there is a dynamic landscape for growth and investment in this sector.

Key Players

The deep-water drilling market key players include Transocean Ltd., Schlumberger Limited, Halliburton Company, Baker Hughes, EnscoRowan (Valaris plc), Seadrill Limited, Saipem S.p.A., Petrobras, Chevron Corporation, ExxonMobil, Noble Corporation, Weatherford International, TechnipFMC, Anadarko Petroleum, TotalEnergies, and Eni S.p.A.

Key Takeaways

• deep-water drilling market is dominated by North America
• Based on the Type, the Drill Ship segment holds 34.6% market share
• Based on the Depth, the Ultra-deepwater drilling segment holds 42.1% market share

Facts & Figures

• In 2020, the "Deepwater Horizon" drilling rig set a record for the deepest offshore oil well drilled at a depth of 35,055 feet.
• By December 2021, the Gulf of Mexico had around 2,000 active deepwater wells, contributing significantly to U.S. oil and gas output.
• In October 2020, the largest deepwater oil discovery in the last decade was made off the coast of Guyana, estimated to hold over 8 billion barrels of recoverable oil.
• By the end of 2021, the average cost of deepwater drilling was approximately $35 per barrel, down from $70 in 2014, reflecting technological advancements and efficiencies.

Key Developments

• In April 2023: Transocean Ltd. announced the successful completion of a deep-water drilling project in the Gulf of Mexico, enhancing its contract backlog.
• In August 2024: Chevron Corporation announced the completion of a successful deep-water exploration campaign in the North Sea, discovering new oil reserves.
• In July 2024: Baker Hughes launched a new digital platform aimed at optimizing deep-water drilling operations, enhancing real-time data analytics capabilities

Top companies in Deep-Water Drilling Industry

Transocean Ltd is a world leader in offshore drilling activities operating in deep waters with special drillships known for safety and efficiency. Transocean carries out operations in various parts of the world, including the high-demand regions of the Gulf of Mexico and offshore Brazil. Schlumberger Limited is one of the largest oilfield services companies specializing in offering innovative technologies and solutions in deep-water drilling. Schlumberger emphasizes data analytics and reservoir management. In essence, this helps in the betterment of operational efficiency and collaborating with the oil companies to optimize their production to the deep-water fields.

Market Segmentation

By Type: Drilling ships are special vessels to be used for the provision of capabilities in offshore drilling operations, particularly in deep and ultra-Deepwater environments. These are installed with state-of-the-art drilling technology combined with dynamic positioning systems to support precision location under challenging ocean conditions.

By Depth: deep-water drilling market share will increase significantly during this period. The increasing oil and gas demand in addition to depleting traditional reserves has resulted in the increased harsh drilling environment.