Subsea Flowlines Market size is anticipated to cross USD 121 billion by the end of 2036, growing at a CAGR of 7% during the forecast period i.e., 2024-2036. In the year 2023, the industry size of subsea flowlines was over USD 10 billion. The growth of the market has been driven by rising demand for oil and gas, supported by increased exploration and production activities at deep and shallow water depths. For example, in 2020, oil and gas producers in Alaska increased significantly the volume of proved natural gas reserves according to a report published in January 2022. In 2020, the proven natural gas reserves in Alaska increased by 27 trillion cu m, quadrupling the state total from 9 TCF to 36TCF.
The latest trend in the subsea flowlines market is an increase in the automation of oil and gas operations. Digital technologies, which can help energy producers compete better in global markets, are playing an increasing role in the exploration of oil and gas reserves. Improvements in drilling efficiency have already been achieved, such as multi-well pad drilling and improved design of wells and pipelines. In order to extract more oil and gas in a shorter period of time, producers are using fewer drilling rigs, thus reducing costs.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
7% |
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Base Year Market Size (2023) |
USD 10 Billion |
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Forecast Year Market Size (2036) |
USD 121 Billion |
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Regional Scope |
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Depth (Shallow, Deep, Ultra Deep)
Based on depth, the deep segment is set to hold the highest share of 40% by the end of 2036. The presence of oil and gas fields, as well as the production of fuels, is driving the segment growth during the studied period. The positive outlook for the industry will be significantly enhanced by increasing investments in deep and ultra-deep oil fields, as well as by increasing emphasis on the production of petrochemical products to meet rising demand. In addition, the shift in focus towards reducing dependence on imported energy sources and a surge of investment in deep offshore oil fields complement an improving outlook for the sector.
Product Type (Subsea, Umbilicals, Risers, Flowlines)
In terms of product type, the flowline segment is predicted to hold the largest subsea flowlines market share of 50% during the projected timeframe. This can be attributed to the increasing demand for oil and gas exploration applications. Flowlines are used to move fluids from or into the host and can be classified as submarine pipelines. They are used to transport the production of oil and gas, and petroleum from offshore.
Basically, a floating production unit on the seabed is part of subsea production systems which can help operators to obtain a good return from oil extraction and other activities. Russia is estimated to have the largest new construction capital expenditure of approximately USD 78.8 billion for the period from 2018 to 2022, according to an Oilfield Technology report published in October 2018. It is expected to commence operations in November 2022, covering a planned length of 6,000 km.
Our in-depth analysis of the global market includes the following segments:
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Depth |
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Product Type |
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Middle East and Africa Market Statistics
The subsea flowlines market in the Middle East and Africa region is set to hold the largest share of 35% by the end of 2036. Increasing investments in the exploration of newly discovered oil reserves, oilfield services, and a favorable outlook for unconventional resource development are driving the market growth in the region. For example, in May 2022, ADNOC announced three important discoveries at Bu Hasa, Abu Dhabi's largest inland oil field with a capacity to produce 650,000 barrels of crude per day. From an exploratory well in the field, the discovery at Bu Hasa contains 500 million barrels of oil.
North American Market Analysis
The subsea flowlines market in the North America region is predicted to hold a share of 28 % during the forecast period 2024-2036. The demand for subsea flowline systems in the region is further driven by technical innovation in drilling and subsea engineering, which allow effective extraction of hydrocarbons from challenging underwater environments. In order to ensure safety and compliance, the adoption of advanced subsea technology is necessary because of stringent regulatory frameworks and environmental standards that contribute to regional industry development.
Author Credits: Payel Roy, Dhruv Bhatia
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