Offshore oilfield services refer to services and related activities undertaken for exploration, extraction and production of oil and gas from under the sea. This includes activities as diverse as seismic surveys, drilling, transportation infrastructure, maintenance, and decommissioning of offshore platforms. In this blog, we will try to cover various aspects of offshore oilfield services including its importance in the global oil & gas industry, trends and technologies, and where the industry currently stands.
Offshore oilfield services encompass various services offered to facilitate exploration and recovery of oil & gas from offshore fields. In 2023, approximately 30% of the world’s oil production is from offshore sources, producing about 30 million barrels per day.These services facilitate exploration and production in multiple stages including:
The offshore oilfield services sector has made great strides in technological innovation, sustainable development and safety. First and foremost, the sector has made great strides in technological innovation. Given the trend of climate change, companies within this sector are constantly pursuing innovation in order to reduce pollution through a variety of methods such as energy-saving equipment, the use of electric motors of high efficiency, the purification of ventilation gas and the utilization of natural gas.
Secondly, the sector contributes to sustainable development. Given the growing global energy demand, it is believed that the major underlying trend in the future energy industry will be to develop offshore fields. Offshore oilfield services are at the core of this trend.
Finally, the sector abides by the principles of safety. This is shown in the fact that offshore oil and gas exploration is a dangerous job with a high rate of work-related death. In recent years, elements such as oil spills have caused severe pollution to water and have had a significant impact on the natural environment.
Offshore oilfield services remain important for the following reasons:
The offshore oilfield services market is huge and dynamic, involving multiple multinational oil & gas operators, specialized service providers and regional companies. In 2023, the global market stands close to $230 billion, expected to grow to $320 billion by 2030. The market is witnessing growth due to increase in energy demand, technological innovation and renewed interest in offshore E&P.
For more insights, download the report “Offshore Oilfield Services Market – Global Industry Analysis, Size, Share, Trends, Growth and Forecast 2017-2025”
The adoption of digital technologies and automation in offshore oilfield services offers huge potential for the industry. Concepts such as digital twins, predictive maintenance and real time data analytics can improve efficiency and reduce unscheduled downtime. For example, digital twins – a virtual simulation of physical objects – can allow operators to track and manage offshore platforms in real time.
Deeper and more efficient exploration and production is being made possible because of technological innovation in subsea technologies. Subsea processing systems (including subsea separation and boosting) can reduce the need for associated offshore topside facilities and lower operating costs.
The offshore oil & gas sector is becoming greener as sustainability gains momentum. This includes using low emission technologies, carbon capture and storage (CCS), and developing offshore wind, wave and other renewable energy systems.
Safety is of paramount importance in offshore operations, and the industry is constantly innovating in this area. Better safety equipment, automated tracking systems and stricter regulations are improving results.
For example, sophisticated blowout preventers (BOPs) and automated emergency shutdown systems can prevent mishaps and reduce risks during offshore operations.
The Middle East (especially the UAE) is home to some of the biggest names in the offshore oilfield services market. The region is investing heavily in offshore oil & gas infrastructure and production capacity.
Despite positive future outlook, the industry faces multiple challenges:
Offshore drilling leads to environmental damage, including oil spills and disruption to marine life. Stringent regulations and public opinion are forcing the sector to adopt better and more sustainable practices to protect the marine environment. Drillers are paying attention to sustainability and the need to limit their environmental footprint. For example, the use of synthetic-based drilling fluids can minimize environmental damage.
Offshore projects are capital intensive, with high costs related to drilling rigs, infrastructure and maintenance. Lower oil prices can put such projects in many oil producing countries in the red.
The offshore environment is harsh, making technology and specialized equipment development challenging. High costs related to maintenance and operation of equipment can hinder profitability.
The need for skilled personnel who can handle sophisticated equipment and emerging technologies is growing in this sector.
Offshore oilfield services have a promising future, with several trends likely to shape the industry in the years ahead. Offshore oilfield services sector employs over 1.5 million people globally, offering huge scope for employment in coastal areas. Capital spending on offshore projects is expected to grow by 20% over the next 5 years, driven by new discoveries and development of existing fields. The future is:
Offshore oilfield services refer to a set of services that help to extract oil and gas resources from the ocean floor. In this regard, industries associated with offshore oilfield services play an important role in meeting the global energy demand by taking advantage of the immense amount of offshore oil and gas resources.
Here in the UAE, companies such as The GET Global Group offer offshore oilfield services to the oil and gas industry. Established in 2008 in the UAE, The GET Global Group has grown to become a key member of an international business network. Now with a solid presence in the offshore sector, the company is poised to drive distinguished and innovative services in the UAE and neighboring countries. Our dedication to and support of the UAE’s goals towards supplying sustainable and secure offshore resources cannot be wavered, especially when it comes to climate change and energy challenges.
The GET Global Group exploits offshore oilfield services with the aid of Next Generation technologies and with the ultimate standard of safety and environmental stewardship.
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