Mobile Offshore Drilling Unit (MODU) Market Trends

Growth Drivers

• Growing Demand for Vehicles :The number of automobiles sold globally was expected to increase from roughly 65 million in 2021 to roughly 66 million in 2022. Hence, with this growth in demand for vehicles, the deployment of oil is also poised to grow, further boosting demand for oil.
• Rise in Demand for Electricity : By 2040, the global electricity demand is set to grow by about 3%. The majority of electricity is created by fossil fuels. Hence, with this extraction of reserves in the ocean the market is set to grow.
• Reduce the Price of Oil : Oil prices drop as a result of offshore drilling. If oil is produced domestically, foreign nations have no influence over domestic oil prices, which are frequently inflated. Moreover, offshore drilling reduces transportation expenses, which lowers the price of oil. Hence, in order to find more reserves in ocean the market demand is about to rise.

Challenges

• Rise in Demand for Electric Vehicles
• High Cost of Operation
• Adverse Effect on Marine Life - Adult fish that have been exposed to oil is anticipated to show growth retardation, enlarged livers, changed fin erosion, respiration rates, and decreased reproductive function. Particularly susceptible to adverse consequences, both deadly and nonfatal, would include larvae, and fish eggs. Oil may make shellfish and fish unsafe for human food, even when no lethal effects are visible. As a result, it is predicted that this factor is set to limit market expansion.